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Old Feb 27th 2017, 4:09 pm   #1
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Default Step by Step - Arrival in Portugal

Dear all,

First of all, thank you for your help earlier (a few months back now )! I'm now getting closer to the move and am wondering whether I've got all my steps figured out or whether I've overlooked something. This is what I had planned:

- obtain fiscal number (numero de contribuinte)
- register with health service (numero de utente)
- apply for residency within 3 months of arrival

I'm unclear about the non-habitual residency tax application: do I do this when I get the fiscal number, but BEFORE the residency application or following the residency application?

Also: I'll be casting my net wide as it were for my house hunt, so it's doubtful that I'll be in the same concelho necessarily to the one where I'll initially be based. I was planning on applying for all the above numbers in my first location (I'll stay at a holiday rental). Is it then just a matter of going to your new camara in the new concelho and request a change of address?

Many thanks in advance for your help I hope I haven't forgotten anything there

Sarah
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Old Feb 27th 2017, 5:26 pm   #2
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Default Re: Step by Step - Arrival in Portugal

I think you will need to apply for NHR after your register the residency.
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Old Feb 27th 2017, 5:26 pm   #3
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Default Re: Step by Step - Arrival in Portugal

You can apply for the NHR during your first year of residency, is not necessary to do so when you apply for your fiscal number. So if you arrive late in the year maybe worth waiting until the following year to get 10 years full benefit
Don't forget to add driving licence to the list , either needs a Portuguese piece of paper to verify its content or maybe need to apply for a Portuguese one.
Ditto if you are bringing a car, can bring one in duty-free if you start the process as soon as you are resident.
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Old Feb 27th 2017, 5:49 pm   #4
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Default Re: Step by Step - Arrival in Portugal

Thanks qianh and Loafing Along! My income is generated abroad, so am I right then that I will get an annual tax bill after the end of the tax year, i.e. I ought to save that amount during the year ready to make the payment the following year. Apologies, as an employee, I always paid income tax via PAYE in UK, so am wondering how to do this now that it won't automatically be deducted anymore.

Re driving license: is there a timeframe for this and does this apply also if one won't own a car, i.e. I'm considering using rental cars as and when needed.
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Old Feb 27th 2017, 5:56 pm   #5
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Default Re: Step by Step - Arrival in Portugal

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Originally Posted by SarahMiller View Post
Thanks qianh and Loafing Along! My income is generated abroad, so am I right then that I will get an annual tax bill after the end of the tax year, i.e. I ought to save that amount during the year ready to make the payment the following year. Apologies, as an employee, I always paid income tax via PAYE in UK, so am wondering how to do this now that it won't automatically be deducted anymore.

Re driving license: is there a timeframe for this and does this apply also if one won't own a car, i.e. I'm considering using rental cars as and when needed.
Hi Sarah
Yes I think you need to fill IRS return before following March/April. I plan to use an accountant when I am going to make the move, or at least for the first year, to make sure everything is done properly. They can also give you relevant professional advices.
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Old Feb 27th 2017, 6:05 pm   #6
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Default Re: Step by Step - Arrival in Portugal

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Originally Posted by SarahMiller View Post
Thanks qianh and Loafing Along! My income is generated abroad, so am I right then that I will get an annual tax bill after the end of the tax year, i.e. I ought to save that amount during the year ready to make the payment the following year. Apologies, as an employee, I always paid income tax via PAYE in UK, so am wondering how to do this now that it won't automatically be deducted anymore.

Re driving license: is there a timeframe for this and does this apply also if one won't own a car, i.e. I'm considering using rental cars as and when needed.
Yes you do your declaration in April for the previous tax year ( calendar year )

Driving licence rules apply when you are a resident, nothing to do with having a car.
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Old Feb 27th 2017, 7:16 pm   #7
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Default Re: Step by Step - Arrival in Portugal

Sarah,

You don't mention what driving licence you have but if a UK one, you no longer have to convert it to a Portuguese licence if you don't want to.......... You can now just register it with IMTT or if you prefer, pay a driving school about €20 & have them do it for you.
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Old Feb 27th 2017, 7:59 pm   #8
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Default Re: Step by Step - Arrival in Portugal

Can you sit a new test for a Portuguese driving licence. So you have a separate one to the uk one?

Might come in useful if too many points are collected in either country
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Old Feb 27th 2017, 8:50 pm   #9
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Default Re: Step by Step - Arrival in Portugal

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Can you sit a new test for a Portuguese driving licence. So you have a separate one to the uk one?

Might come in useful if too many points are collected in either country
Not legally.
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Old Feb 28th 2017, 7:52 am   #10
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Default Re: Step by Step - Arrival in Portugal

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Originally Posted by qianh View Post
Hi Sarah
Yes I think you need to fill IRS return before following March/April. I plan to use an accountant when I am going to make the move, or at least for the first year, to make sure everything is done properly. They can also give you relevant professional advices.

Only thing to be aware of here is that you must have your NHR before you pay any tax in Portugal. It becomes null and void if you do.
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Old Feb 28th 2017, 10:01 pm   #11
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Default Re: Step by Step - Arrival in Portugal

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Re driving license: is there a timeframe for this and does this apply also if one won't own a car, i.e. I'm considering using rental cars as and when needed.
I think you need to register your UK driving licence with the IMTT 60 days after gaining residency. They'll give you a piece of paper to say that you have done this. It just links your licence to your address. You don't need to exchange it for a Portuguese one until it expires. Well before it expires or you'll have to sit a Portuguese driving test.

Like GeniB says you need to get straight onto the NHR scheme in the first year else you won't be eligible, since the main criteria for it is that you haven't paid tax in Portugal in the previous 5 years.
But you don't pay tax until the spring of the year following your arrival, so you should have time to sort out an accountant.

I think the proof of address comes from your local Junta not the Camara. But I guess you'd then have to take this proof of address to the Camara to get your residency updated.

I've not moved over yet so I'm not talking from experience.

This link is to a site about NHR...

http://info.portaldasfinancas.gov.pt...IRS_RNH_EN.pdf
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Old Mar 1st 2017, 9:12 pm   #12
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Default Re: Step by Step - Arrival in Portugal

We became resident here in 2016 so have recent experience. I would advise this order:

- obtain fiscal number. You'll probably need to be entered as Non resident first of all, then change residency status with Finanças later on;

- apply for residency, which you can do earlier than 3 months if you know you'll be staying beyond that period, otherwise after 3 months stay you must apply by the end of the 4th month. First get proof of address (Atestão) from your local Junta de Freguesia (parish council) then take that with other necessary documents to your Camâra Municipal (council) for residency certificate;

- with residency certificate, passport and fiscal number you can register at your health centre and obtain a PT state health service patient number;

- by the end of month 5 take the same docs as above plus driving licence to local IMTT office (PT DVLA) to register your overseas (UK?) licence with them. You'll be given a document showing those registration details to carry with you when driving in PT. As someone else said this requirement is based on being resident in PT, regardless whether you own the car you're driving;

- within 2 months of applying for residency, you must change your residency status with Finanças (also change with your PT bank re difference in retained tax on interest);

- once Finanças have you registered as Resident, you can apply for NHR tax status. This must be done online now, so first obtain codes to use the Finanças/AT online portal (will be sent to you in post hence important Finanças has correct address). Then apply for NHR status online. Easy to do now so long as all the personal details already held for you are correct. Not worth paying an accountant several hundred euros at least to do what is now so simple. Think it used to be more difficult to obtain. We had it granted within 48 hours. In order to be eligible you just apply by 31st March of the PT tax year following the tax year in which you became resident ( remember PT tax year Jan-Dec);

- file personal income IRS declaration (tax return) between 1st April and 31st May (other than personal income will be different deadlines). We will be using an accountant to help with our first declaration at least. Main IRS declaration form called Modelo 3, then for overseas income you must also complete Annexo J and for NHR residents also Annexo L.

Hope this helps.
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Old Mar 1st 2017, 9:20 pm   #13
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Default Re: Step by Step - Arrival in Portugal

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Originally Posted by Mac and Mabel View Post
Hope this helps.


That's excellent Mac and Mabel.

We are trying to find out if we ought to move over in January 2018 as opposed to November or December 2017.
We don't want to get involved in the 2017 tax year.

Do you know if we are liable for tax from the date we arrive intending to stay or the date we apply for residency?
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Old Mar 2nd 2017, 8:35 am   #14
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Default Re: Step by Step - Arrival in Portugal

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Originally Posted by Mac and Mabel View Post

Hope this helps.
Many thanks for the post. My planned schedule is registering residency in 2018, if there is no change in the law. I know we can apply for NHR on financas portal but I sometimes find it's not as self explanatory as I expected. That's the reason Why I consider using accountant to avoid mistakes. But if it's very straightforward I may do it myself. Wonder if you can post some tutorial regarding how to fill it online. Thanks!
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Old Mar 2nd 2017, 10:36 am   #15
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Default Re: Step by Step - Arrival in Portugal

Good morning everyone!

< snipped >

Re avoiding becoming tax PT tax resident in 2017, you should then avoid living at a main residence in Portugal on 31st December 2017. If your main residence is still elsewhere in the world on that date (and you could prove that if queried) you shouldn't have a problem, but maybe best left until 2018 if you can. Basically, to the best of my knowledge, one becomes tax resident in PT if more than 6 months of a PT tax year are spent in PT or one has a residence in PT that could be considered their main residence on 31st December of any tax year.

Re from what date one declares income for PT tax, I believe you declare from the beginning of the tax year in which you became resident (1st Jan) regardless of whether you were actually resident at the start of the year, but I will know more in a week or so after I have met with our accountant.

Ok, hope this helps too.

Last edited by BEVS; Mar 3rd 2017 at 1:23 am. Reason: Please read rule 9 . Thx
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