🇵🇹 Living in Portugal? How to Avoid Being Taxed Twice on Your UK Pension
If you’re living in Portugal and still seeing UK tax deducted from your pension — even with an NT (No Tax) code — you’re not alone. Many UK expats face this issue, especially after a pension increase.
It’s frustrating: long waits on HMRC helplines, confusing forms, and double taxation on your hard-earned income.
The good news? There is a fix, and it starts with a Double Taxation Treaty Relief Form.
💼 Why You’re Still Being Taxed by HMRC
When you move to Portugal, HMRC needs to be officially notified that you’re no longer a UK tax resident.
If you don’t inform them, they will continue to tax your UK pension — even though Portugal also taxes that same income.
Thankfully, the UK and Portugal have a Double Taxation Agreement (DTA). This agreement ensures you won’t be taxed twice on the same income — but you must apply for relief to activate it.
✅ The Steps to Stop Being Taxed Twice
Here’s a simple guide to stop HMRC from taxing your UK pension once you're living in Portugal:
1. Complete the DT-Individual Form
This is the official HMRC form to apply for tax relief under the double taxation agreement.
📥 Download the DT-Individual Form here
2. Get a Portuguese Tax Residency Certificate
You’ll need a “Certidão de Residência Fiscal” from Finanças (the Portuguese tax office).
This confirms you’re tax resident in Portugal and should show the date you became resident.
📍 You can request this online via the Portal das Finanças.
3. Submit Both Documents to HMRC
Post or upload the DT form and your residency certificate to HMRC.
Once processed, they’ll stop taxing your pension in the UK, and you may get a refund for any overpaid tax.
4. Be Patient – and Persistent
HMRC isn’t known for its speed. It can take several months to get confirmation or a refund, but once sorted, the system generally works going forward.
🧾 Important Notes and Common Confusions
-
This is not the S1 form!
The S1 form is for healthcare, not tax. For tax matters, you need the DT-Individual form. -
Declare all income in Portugal.
Portugal must know about your UK pension and any other overseas income — even if it’s not taxed twice. -
It’s all linked now.
Global tax systems are increasingly interconnected. Not declaring your income can result in fines or backdated tax bills. Honesty is the best policy!
🤯 Real Stories from Our Community
“I've been taxed since my last pension increase, despite having an NT code. I called HMRC – waited 40 minutes, spoke for 5, then the call dropped. Grrrrr! It’s not a fortune, but it’s a pain in the proverbial!”
“All because I didn’t send in the DT form when I moved. Don’t make my mistake — just do it!”
You’re not alone in this. If you’ve moved to Portugal and haven’t submitted the form, now’s the time.
💬 Final Thoughts
Sorting out your tax status may feel like a hassle, but it’s well worth it for the peace of mind and the money saved.
Make sure you follow the steps, keep copies of everything you send, and if in doubt, get advice from a cross-border tax specialist.
📥 Need Help with Moving to Portugal?
We’ve got practical guides, relocation checklists, and a supportive community to help you every step of the way.
👉 Download our “Move to Portugal” Guide for £9.99
👉 Join our Facebook Group: Move to Portugal D7 Visa
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