British expats in Portugal are being urged to act now ahead of what’s expected to be a significant tax squeeze in the UK’s Autumn Budget, following Chancellor Rachel Reeves’ first major Spending Review this week.

Jake McLaughlin, Executive Director of deVere Portugal, says that many in the expat community risk being caught off guard. “This Spending Review sets the scene for a major tax raid later this year. For Brits abroad who still have financial ties to the UK, the time to prepare is now, not after changes are announced.”

Reeves’ review unveiled tens of billions in new spending, with major pledges for nuclear energy, regional transport, defence, education, and social support.

The UK government is also aiming to increase defence spending to 2.5% of GDP by 2027–28. However, what was missing from the announcement was any detailed explanation of how this ambitious programme will be funded.

“There’s no clear plan to pay for any of this,” says McLaughlin.

“With the UK facing sluggish growth, high borrowing costs, and limited appetite for its debt, taxation is the obvious lever. The Autumn Budget is where the real cost will become apparent.”

For British expats in Portugal — particularly those with UK income, pensions, property or inheritance exposure — the outlook is increasingly complex. To check your exposure to changes, try the free quiz: https://dvassetplanningquiz.scoreapp.com/?utm_source=tpn

“We’re seeing a sharp rise in the number of people reviewing their situation,” McLaughlin says.

“These are professionals, retirees, and entrepreneurs who already live in Portugal or are seriously considering it. Many are worried about what’s coming and don’t want to wait until it’s too late to act.”

Portugal remains one of the most attractive destinations for British nationals looking for a better balance of lifestyle, cost, and financial predictability. While the Non-Habitual Residency (NHR) tax regime is being closed to new applicants, many who applied in time can still retain the benefits under the original terms.

“For those who already secured NHR status, there’s still time to make the most of it,” says McLaughlin.

“Others are exploring how to restructure their finances, review pension arrangements, and make Portugal their primary tax base — especially if the UK becomes even more demanding on those with assets.”

Recent years have seen a steady increase in concern among internationally mobile Britons about the UK’s direction on tax policy. Capital gains taxes have crept higher. Thresholds have been frozen.

There’s uncertainty around pension reliefs, and speculation about possible inheritance tax reform. Reeves’ latest plans do little to calm those fears.

“People are getting the message — ambition is being penalised and success taxed more heavily,” McLaughlin says. “That’s pushing more people to think seriously about leaving the UK behind, financially speaking.”

According to HMRC, net emigration among higher earners is now at its highest since the global financial crisis. OECD data shows the UK’s tax burden is already among the highest in the G7 — and still rising. Meanwhile, deVere Group reports a 28% year-on-year increase in clients actively exploring cross-border planning options.

McLaughlin says Portugal is frequently near the top of the list for those reassessing their long-term plans. “It’s not just about tax. It’s about predictability. People want to know what to expect in five or ten years. Right now, the UK doesn’t offer that clarity.”

He warns that waiting until the Autumn Budget could mean missing key planning opportunities.

“Tax changes can be announced with immediate effect. If people delay, they may find that doors close overnight. That’s why we’re encouraging expats and those with UK ties to act now, before reforms are locked in.”

His advice is straightforward: “Review your residency and tax exposure, understand your options, and get proper advice while you still have time to respond. Once the Budget is published, your room to manoeuvre could shrink fast.”

This article is for general information only and does not constitute financial advice. Individuals should seek independent, regulated guidance tailored to their specific circumstances.


You can contact Jake with any questions here: jake.mclaughlin@devere-portugal.pt or the deVere Portugal Office +351 22 110 9071 or book a meeting with him here https://calendly.com/jake-mclaughlin/review