Estate Planning in Portugal (UK Nationals)
Portugal has been the destination of choice for a particular kind of British retiree for fifteen years — first under the original NHR regime, more recently under its successor. The tax planning that brought clients here is not the estate planning that should follow them. We see the same gap repeatedly: a clean Portuguese income-tax position and a UK estate position that hasn't been touched since the move.
Portugal looks gentle. The UK side is not.
Portugal charges no inheritance tax between spouses, parents and children. The UK does — and it is your UK domicile, not your Portuguese residence, that decides whether 40% applies.
Stamp Duty (Imposto do Selo) at 10% applies in Portugal to inheritances passing to anyone outside the direct family line. Direct heirs — spouse, children, parents — are exempt. This is the headline that brings many clients here, and it is genuinely favourable. But it is also the reason most British residents in Portugal stop reading the inheritance question once they arrive.
UK Inheritance Tax is a separate system that follows domicile. Selling a UK home and taking up residence in Lagos or Cascais does not, in itself, end your UK-domiciled status. For most clients, deemed-domicile rules keep them inside the UK IHT net for at least three full tax years after departure, often considerably longer where ties remain. The UK pension, the UK rental, the ISA — all of it sits at risk.
From April 2027 unused UK pensions enter the IHT estate. For Portugal-resident Britons whose entire retirement plan was built around drawing slowly from a SIPP and leaving the rest to children, the calculus has changed. Doing nothing is now an active decision with a measurable cost.
The end of NHR and what comes next
The original Non-Habitual Resident regime closed to new applicants in 2024. The successor (IFICI / NHR 2.0) is narrower and tied to specific scientific, technological and high-value activities. For clients already inside the original NHR, the ten-year clock continues to run. The estate-planning conversation is the one we have most often when clients realise the tax holiday is finite — and that the UK side was never on holiday in the first place.
Portuguese wills and Brussels IV
Portugal applied EU Regulation 650/2012 to allow British nationals to elect English law to govern the succession of their Portuguese assets. Despite Brexit, Portuguese practice continues to recognise the election where it is properly made. Done correctly, this avoids Portuguese forced-heirship default rules. Done by default, those rules can disinherit a second spouse or stepchildren entirely.
The UK rental kept on for income
Many British retirees in Portugal keep one UK property — let through an agent, used as a base on UK visits, or held for an adult child. That property remains squarely inside the UK IHT estate and is also subject to UK income tax. A Property Trust on the UK will, restructured ownership, or in some cases transfer to an LLP can change the picture significantly without disturbing the Portuguese position.
Where we typically come in
UK Inheritance Tax Planning
Modelled around April 2027 pension changes, deemed-domicile timing and any retained UK property or business interest. The core of every Portugal engagement.
Read more →English Wills with Brussels IV election
Coordinated with your Portuguese lawyer so the English will and any Portuguese will work together — neither revoking the other.
Read more →Lasting Power of Attorney
For your UK assets and for the gap before any Portuguese procuração takes effect. An English LPA is the document that prevents a Court of Protection deputyship if capacity is lost.
Read more →Property Trusts (UK)
Ring-fence the UK property share against care fees and against unintended onward transfer to a future spouse.
Read more →What we'd actually do for you
A first call is free and entirely by video. We read your existing English will, any Portuguese will, the property and pension paperwork, and tell you where the live UK exposure actually sits. From there we draft what needs drafting on the UK side and coordinate with your Portuguese adviser on the local side. The two strands of the work need to be done together, not in sequence.
Complete the Discovery first - then we'll book your free 30-minute consultation.
Common questions from clients in Portugal
Portugal doesn't tax inheritance to my children — so why do I need IHT planning?
Because UK Inheritance Tax follows your UK domicile, not your Portuguese residence. Most British clients in Portugal remain UK-domiciled for IHT purposes for years after the move. The Portuguese exemption is real for the Portuguese side. The UK side is unaffected by it.
Did Brexit end the right to elect English law for my Portuguese assets?
No. Portugal continues to recognise an English-law election under Brussels IV in practice, where the will is drafted to make the election properly. We coordinate with Portuguese counsel to confirm the position for your specific assets.
I'm on the original NHR scheme. Should I be planning differently?
Yes — the ten-year clock is finite, and the estate-planning question is independent of the income-tax position. The right time to put the structure in place is during the NHR window, not after it expires.
Do I need to come to your office to work with you?
No. We work nationally — and increasingly internationally. Most of our clients in Portugal are seen by video call, with documents signed remotely or couriered when wet signatures are needed. The advice is the same. The convenience is yours.
Is Sean Kiani regulated?
Sean Kiani is a member of the Society of Will Writers and holds full Professional Indemnity Insurance. Estate planning is unregulated in the UK — which is precisely why credentials, supervision and indemnity matter.
What does a first conversation cost?
Nothing. A first call is free, confidential, and exists for one purpose: to find out whether your current arrangements still do what you think they do. If they do, we'll tell you. If they don't, you'll know exactly what's exposed and what to do about it.
Your 30 minutes. Simple. Yours.
No-obligation.
The path is simple: complete the Discovery first so we walk into the call already knowing the facts. Then in 30 focused minutes, I listen, answer your questions, and you choose if you'd like us to draw up your Inheritance Plan.
1. Start Your Discovery
Required first step. Complete the confidential financial position review so your no-obligation 30-minute consultation starts with the facts, not the basics.
2. Request a Callback
Prefer to speak first? Leave your details and we'll call you back to talk through the Discovery before you complete it.
You choose the date, time, and format - phone or online. Bring anyone you'd like.