UK Pension After Death Abroad in Portugal: DWP, HMRC, and Survivor Benefits

Thousands of British pensioners live in Portugal — the Algarve alone has one of the largest UK expat retirement communities in Europe. When one of them dies, the UK State Pension does not stop automatically, and the administrative machinery for closing their pension and tax records is spread across multiple departments that do not communicate with each other.

Here is what needs to happen, who needs to be contacted, and what the surviving spouse or family can claim.

Stopping the State Pension

The UK State Pension is paid four-weekly in arrears. When someone dies, the pension continues to accumulate until DWP is told — and any payments made for periods after the date of death must be returned.

For pensioners living abroad, the International Pension Centre (IPC) handles all notifications. Call them with:

• The deceased's National Insurance number
• Their date of death
• The Portuguese death certificate reference (the IPC will ask for a certified copy to be posted, but they can action the stop immediately based on the phone notification)

The IPC will calculate the final pension entitlement up to the date of death and issue a final payment. If a four-weekly payment has already been made that covers days after the death, they will calculate the overpayment and contact the estate for repayment — this is not discretionary; the overpayment must be returned.

If the deceased was also receiving Pension Credit, Attendance Allowance, or Winter Fuel Payment, these stop from different dates and may be handled by different DWP teams. The IPC call is the right starting point — they will route you to the correct teams.

HMRC and the Final Tax Position

The deceased's tax affairs need to be formally closed with HMRC. Even if the deceased was non-resident for UK tax purposes (as many Portugal-based expats are), HMRC still needs to be notified to:

• Issue a final tax calculation for the current tax year
• Close any self-assessment obligations
• Process any tax refund (common when the deceased dies partway through a tax year and the annual personal allowance has not been fully used)
• Cancel any existing payment plans or direct debits

If the deceased had UK rental income, UK-source dividends, or other income that required Self Assessment, HMRC may require a final return covering the period from the start of the tax year to the date of death. HMRC will tell the personal representative if one is needed.

UK–Portugal double-taxation treatment depends on residence, the type and source of income, and the treaty. Do not assume Portuguese-source income is outside UK tax or vice versa; HMRC or a tax adviser should confirm the final position.

Survivor Benefits: Bereavement Support Payment

If you are the surviving spouse or civil partner of the deceased — including if you were living together in Portugal — you may be eligible for Bereavement Support Payment (BSP).

BSP has two rates:

• Standard rate: £2,500 lump sum plus up to 18 monthly payments of £100
• Higher rate (if, when your partner died, you were getting or entitled to Child Benefit for a child living with you or were pregnant): £3,500 lump sum plus up to 18 monthly payments of £350

Eligibility depends on the deceased's National Insurance contributions, not on where the death occurred or where you live. The deceased must have paid NI contributions for at least 25 weeks in one tax year, or died as a result of an industrial accident or disease.

Claim within three months of the death to receive the one-off payment and all 18 monthly payments. If you claim after three months but before 12 months, you may receive the one-off payment and some monthly payments; after 12 months but before 21 months, the one-off payment is not available but some monthly payments may remain.

BSP is not means-tested, but its interaction with other benefits can change over time; check the current rules for your circumstances.

Portuguese Survivor Pension (Pensão de Sobrevivência)

If the deceased was also receiving a Portuguese state pension or had paid into Portuguese social security (Segurança Social), the surviving spouse may be entitled to a Portuguese survivor pension — typically 60% of the deceased's Portuguese pension.

This is a separate claim to a separate system. Contact the nearest Segurança Social office in Portugal with the death certificate, marriage certificate, and the deceased's Portuguese social security number. Eligibility and the interaction with any UK payment depend on the applicable rules, so confirm both claims with Segurança Social and DWP.

The Three-Month Inheritance Deadline

If the deceased owned property or held assets in Portugal, the family faces a strict Portuguese tax deadline that runs in parallel with the pension and tax notifications. The Head of the Estate (Cabeça de Casal) must file a Modelo 1 stamp duty declaration with Portuguese tax authorities (Finanças) by the end of the third month following the month of death.

Direct heirs — spouse, children, parents — are exempt from the 10% stamp duty, but the filing itself is still mandatory. Missing the deadline triggers automatic financial penalties.

This deadline is particularly easy to miss when the family is focused on the UK pension, HMRC, and probate tracks. The two countries' administrative processes run independently, and neither system alerts you about the other's deadlines.

The British Person Dies in Portugal — Family Emergency Guide includes a parallel UK/Portugal timeline that maps every notification deadline across both jurisdictions.