How the 2024 UK Budget Impacts British Expats

“The UK tax landscape is shifting — and for many, Portugal is becoming the strategic next move.”

The UK Budget 2024, presented by Chancellor Rachel Reeves, introduces major changes that directly impact British expats, investors, and retirees. From inheritance tax reforms to pension changes and CGT adjustments, these updates are already influencing decisions about moving to Portugal and investing in Portuguese real estate.

👉 Explore handpicked properties across Portugal or browse Algarve properties for sale .

Key UK Budget 2024 Changes Affecting Expats

Pension Reforms & Inheritance Tax

The continuation of the Triple Lock offers stability, but the inclusion of pension funds in inheritance tax from 2027 significantly changes estate planning strategies.

👉 Insight: This makes diversification into assets like Portugal property increasingly attractive.

Overseas Transfer Charge Expansion

The expansion of the 25% OTC on pension transfers across the EEA creates additional friction for UK investors moving funds abroad.

👉 This reinforces the value of investing directly into tangible assets such as:

Real estate
Land investments
Rental properties

New UK Tax Residency Rules (2025+)

Residence-Based Taxation

The UK’s move toward a residence-based tax system introduces a 4-year tax relief window on foreign income.

Inheritance Tax Changes

Non-UK assets may still be taxed depending on residency ties, making planning essential.

Planning Your Move with Confidence

👉 Start with our Portugal Buyer’s Guide

👉 Estimate taxes using our Portugal Tax Calculator

Pro Tip: Proper structuring before relocating can save thousands in taxes.

Capital Gains Tax & Property Strategy

With CGT increasing on financial assets, many UK investors are shifting toward real estate investments in Portugal, where:

Rental income is strong
Property appreciation is stable
Lifestyle value is high

👉 Learn more: Portugal investment strategy

Why British Investors Are Choosing Portugal

Lower Property Taxes

Portugal offers significantly lower property taxes compared to the UK.

High Rental Demand

Tourism drives strong yields, especially in the Algarve.

Diverse Property Options

👉 Explore:

Why 2026 Is a Strategic Entry Point

UK tax pressure increasing
Portugal demand rising
Limited coastal supply
Strong international buyer interest

Why Work With Immo Lusitania

Licensed AMI 26908
Independent buyer representation
Off-market deals
Full legal & tax coordination

👉 Explore our services

Frequently Asked Questions

Does UK tax still apply if I move to Portugal?

Yes, depending on residency ties and assets.

Is Portugal tax-friendly?

Yes, especially compared to the UK for property and lifestyle.

Is buying property in Portugal a good investment?

Yes, due to demand, stability, and rental yields.

What’s the first step?

👉 Contact us

Start Your Move to Portugal Today

📩 ferdi@immolusitania.com
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👉 Book a consultation