Most people preparing to move to Portugal worry about opening their Portuguese bank account. For British applicants that is usually the more manageable part, since the UK is treated as a low-risk jurisdiction for anti-money-laundering checks, and it triggers no additional reporting obligations for the bank, unlike, for instance, the US, whose citizens’ accounts must be reported under FATCA.
The harder part sits at the other end, in keeping the UK current and savings accounts, credit cards and investments you already have, including ISAs. The problems usually surface a few weeks after you update your address.
The reason? Brexit.
While the UK was in the single market, British banks could serve customers anywhere in the EU under their UK licence, a right known as “Passporting”. Brexit ended that, so keeping a customer who moves to Portugal now depends on Portuguese and EU rules. .
Each UK bank has responded in its own way when faced with the new post-Brexit landscape, with different policies on whether, and on what terms, it keeps serving customers who move to the EU. Few set these out clearly, so most customers only find out where they stand after they have moved.
What happens to your UK accounts
UK current accounts, whether from high-street or digital banks, are generally designed for UK residents. Some banks, such as Barclays, Monzo and Starling, require customers to be UK residents, so a permanent move abroad means losing the account. Others, like Santander and Nationwide, let existing customers keep their accounts but offer no new products or extra borrowing once they live abroad. Not all providers publish their policy, and those that do are not always clear, so check with yours before you move.
The usual alternative is a bank’s international arm: an account offered by a UK banking group in sterling, often with euro and dollar options, but held outside the UK and designed for customers living abroad, so it does not depend on UK residence. Most are held in the Crown Dependencies of Jersey, Guernsey and the Isle of Man. Examples include HSBC Expat and NatWest International in Jersey, Barclays International Banking in the Isle of Man, and Lloyds Bank International, which has branches in all three.
Each accepts residents of certain countries only, so check that Portugal qualifies. Bear in mind too that Portugal currently lists these jurisdictions as preferential tax regimes, so interest earned there can be taxed at a higher rate once you are a Portuguese tax resident, and, as the next section explains, deposit protection is lower than in the UK.
Urban myth vs legal insight: Ignore the common advice to keep a relative's UK address on the account. It almost certainly breaches the bank's terms, which require you to keep your details up to date, and means giving the bank false information about where you live. Banks also ask customers to confirm their tax residence from time to time under the Common Reporting Standard (CRS), and if the bank spots that you have moved, it is likely to close your account. It also leaves you with two contradictory statements, UK resident for the bank and Portuguese resident on the Portuguese tax return where you must declare the account, which could be hard to explain if either is ever examined.
Where your deposits are actually protected
Three regimes, three numbers, and the one most people assume applies often does not.
The UK - Financial Services Compensation Scheme (FSCS)
Deposit protection rose to £120,000 per person per institution, for UK-authorised banks, building societies and credit unions failing on or after 1 December 2025. Many guides still quote the old figure of £85,000. Protection rises to £1.4 million for six months in case of temporary high balances, for instance, if you sell your main home or receive a large inheritance.
The bank’s international arms.
The international accounts marketed specifically at Britons moving abroad are not FSCS-covered at all. Accounts held in Jersey fall under the Jersey Bank Depositors Compensation Scheme (JDCS), which protects £50,000 per depositor per banking group, and Guernsey and the Isle of Man run their own schemes, also capped at £50,000, though their rules differ in the details.
Bottom line: The account you open precisely because you are emigrating may result in a Protection shortfall, to less than half of what you had.
Portugal - Deposit Guarantee Fund (Fundo de Garantia de Depósitos or FGD)
Deposits are covered up to €100,000 per depositor per credit institution and the scheme must repay depositors within seven working days. In certain cases, such as proceeds from selling a private home, higher balances are exceptionally protected in full on a temporary period, for a year from the date of credit.
Outside those cases, if you are holding six figures in cash for a few months, consider splitting it across institutions rather than assuming one account covers it. Because it won’t. Anything above the limit is simply exposed.
Safe to say, whatever your situation, you shouldn’t put all your eggs in one basket.
Opening the Portuguese account
First things first.
Before heading to a Portuguese bank, start by getting the NIF aka the Portuguese tax identification number, because no bank will proceed without one.
You can apply in person at a tax office (Serviço de Finanças) or a Citizen’s Shop (Loja do Cidadão), by appointment, or online through a lawyer or solicitador acting under a specific power of attorney. You will need a valid passport and proof of your UK address. In person, the number is usually issued on the spot.
Since Brexit, Britons who apply for a NIF while still living in the UK do so as third-country residents , and the Portuguese Tax Authorities (PTA) require a named fiscal representative, a person or firm in Portugal who represents them before the PTA, receives their tax correspondence and ensures of the tax obligations compliance, unless they sign up for electronic notifications on the official tax portal (Portal das Finanças). . That route puts the responsibility on you, as electronic notices count as delivered whether or not you read them, so delegating to a professional is usually the safer choice. Either way, the requirement ceases to apply once you become a tax resident in Portugal.
Online forms are possible, but they are the exception rather than the rule. Remote opening always involves a live video call to verify your identity, and many Portuguese banks, traditionally conservative, still prefer to see you in a branch. Millennium BCP and ActivoBank are among those that advertise digital onboarding with a passport through a video call, and ActivoBank explicitly lists UK passports among those it accepts, provided you already have a NIF and proof of address and employment. Millennium BCP also has a representative office in London, if you would rather deal with someone face to face.
In the likely event of rejection, fear not: it happens to many foreign applicants.. Applying in person during a visit to Portugal is often the simplest solution, so set aside a few days of your trip for it.
New PT-UK double taxation treaty: what changed?
A new UK-Portugal double taxation treaty (DTT) replaced the 1968 agreement. It applies in Portugal from January 2026 and in the UK from the same date for taxes withheld at source, and from 6 April 2026 for income tax and capital gains tax. Three points matter most.
1. Pensions follow your residence. Once you become a tax resident in Portugal, only Portugal can tax your UK pensions, other than public sector ones, , and the UK cannot tax them even if Portugal leaves them untaxed, which was not always the case under the old treaty. . This includes workplace, state and personal pensions, self-invested personal pensions (SIPPs) and annuities. That does not make them tax-free, since normal Portuguese progressive tax rates apply. The flat 10% rate on foreign pensions belonged to the former NHR regime, and its successor, IFICI, offers neither an exemption nor a reduced rate for pensions.
2. Government service pensions, in principle, do not. As a general rule, civil service, armed forces, police and similar pensions remain taxable only in the UK, with a narrow exception turning on nationality for Portuguese nationals who are not also British, whose pensions can be taxed in both countries.
A mixed pension history (public and private) combines different rules, so it is worth modelling the overall tax position rather than assuming.
3. Dividends and interest carry a general 10% ceiling. The new treaty caps UK tax at source, generally, at 10% both on dividends and interest paid to individuals who are tax residents in Portugal, down from the 15% for dividends under the old treaty.
However, the ceiling is a limit, not a charge: UK domestic law decides whether any tax is actually withheld. As a general rule, the UK withholds nothing on these incomes, so you receive the gross amount, which is therefore taxed only in Portugal, under Portuguese law.
The treaty sets a different cap of 15% on distributions from certain property investment vehicles, such as UK REITs. These are an exception to the general rule, as UK withholds tax on them at 20%.%
In these cases, only 15% is due in the UK. The extra 5% withheld must be reclaimed from HMRC, and Portugal will credit only the 15% against your Portuguese tax at the flat rate of 28%, whether or not the excess is refunded. Provided that the excess is reclaimed, you would be taxed at 28% in total: 15% in the UK and 13% in Portugal.
What the treaty does not cover is inheritance tax, and there is no separate UK–Portugal treaty on it. Feel free to check our separate guide to Portugal inheritance rules for foreign residents.
ISAs: locked, not lost. You can keep existing Individual Savings Accounts (ISAs), but you cannot contribute to them or open new ones once you become a Portuguese tax resident, since both require UK residency. More significantly, Portugal does not recognise the wrapper.
The income generated by an ISA (interest, dividends and gains) becomeS taxable to a Portuguese resident, generally at a flat 28%, with the option to elect progressive rates across all your investment income instead. Gains on investments held for less than a year must be taxed at progressive rates for those in the top income bracket.
The exception lies in Portugal’s IFICI regime. Since ISA income counts as investment income (and not as a pension), and IFICI generally exempts foreign investment income for up to ten years, its beneficiaries effectively keep the ISA’s tax shelter, although that income is still taken into account when setting the tax rate on their other income.
Your UK investments: reporting and timing
Investment portfolios, whether inside an ISA or not, also need careful reporting, as UK statements follow UK rules while Portuguese returns require acquisition and sale dates and values in euros.
Timing matters too. Once you are tax resident in Portugal, a later sale will generally be taxed on the whole gain, including growth built up while you lived in the UK, unless you qualify for IFICI. Model this before you move: selling some holdings beforehand may be worth considering, especially inside an ISA, where gains are free of UK tax.
Lost in conversion
Exchange rates, twice over. The one-off cost is obvious: converting a property deposit at a bank's retail spread can cost thousands compared with a specialist currency broker or a fintech provider such as Revolut or Wise. The recurring cost gets less attention. If your income arrives in sterling and your life is priced in euros, you carry currency risk every month, and forward contracts exist for a reason.
Mortgages. Portuguese banks often lend non-residents 60% to 70% of the lower of purchase price and the valuation, so budget for a deposit of 30% to 40%. Sterling earners tend to be offered the lower end, closer to 60%, because non-euro income is assessed more cautiously. Once you are a Portuguese tax resident, Banco de Portugal recommends a cap of 90% for a permanent home, and since August 2026 monthly repayments should generally not exceed 45% of net income.
Frequently asked questions (FAQs)
Can I keep my UK bank account after moving to Portugal?
It depends on the bank. Some providers, such as Barclays and Monzo, require customers to be UK residents, while others let existing customers keep their accounts with restrictions. The usual alternative is a bank’s international arm, such as HSBC Expat or NatWest International, built for non-residents, though held outside the UK and offering less deposit protectionDo I need a Portuguese bank account?
Not legally, but in practice usually yes. Landlords and utilities often insist on a Portuguese IBAN, although EU law requires them to accept any EU one. D7 Visa applications also typically require proof of subsistence funds in a Portuguese bank equal to 12 months of the national minimum wage (€11,040 for a single applicant in 2026). Other visas set different thresholds, such as the D8 for remote workers, which requires a monthly income of at least four times the minimum wage (total of €3,680 in 2026).
Is my money as safe in Portugal as in the UK?
Slightly less protected. Portugal guarantees €100,000 per bank against the UK's £120,000. The weak point is the banks’ international arms, held outside the UK , at £50,000.
How is my UK pension taxed once I live in Portugal?
Private and state pensions generally become taxable in Portugal only, at the normal progressive rates, even under the IFICI regime. The reduced 10% rate applies only under the former Non-Habitual Resident (NHR) regime, which still covers existing beneficiaries but is closed to new ones. Government service pensions usually remain taxable only in the UK.
Will HMRC know about my Portuguese accounts?
While you are still a UK tax resident, yes: under the Common Reporting Standard, a Portuguese account opened before you move is reported to HMRC. Once you are tax resident only in Portugal and have updated your details with the bank, automatic reporting goes the other way, with your UK accounts reported to the Portuguese tax authority, although both countries can still exchange information on request.
Before You Move: Get Your Banking and Finances in Order
The sequence is unglamorous. Sort the UK end before you go, because options narrow the moment your address changes. Get the NIF next. Open the Portuguese account remotely by video call if your bank offers it, or in person if you can manage a trip . Then look hard at where the cash is sitting and when your pension and investment income change character and will be taxed once you move, because those two questions cost more than every bank fee here combined.
Last updated: October 2026. This article is general information, not tax, legal or financial advice. Bank policies, protection limits, treaty provisions and visa thresholds change, and individual circumstances vary.
Frequently Asked Questions
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