The tax agreement means that most UK pensions are taxed in Portugal, at 10% for Non-Habitual Residence Scheme members for the first 10 years of residence. Other expats are taxed at the standard income tax rates, up to 48% depending on their income tax band. There are many options for pension schemes, such as transferring to a QROPS to ensure the fund is tax-compliant and will not attract UK taxes or overseas pension transfer charges.