Step by Step - Arrival in Portugal
#46
Re: Step by Step - Arrival in Portugal
Hi,
Thnxs for reply.
So to summarise as I understand it - provided all goes reasonably smoothly in the paperwork etc - all is correct and one follows the correct proceedure - it should be possible to obtain a confirmation of NHR within circa a month of initial arrival in Portugal??
Best Rgds.
Thnxs for reply.
So to summarise as I understand it - provided all goes reasonably smoothly in the paperwork etc - all is correct and one follows the correct proceedure - it should be possible to obtain a confirmation of NHR within circa a month of initial arrival in Portugal??
Best Rgds.
#48
BE Forum Addict
Joined: Aug 2012
Location: Viana do Castelo
Posts: 1,385
Re: Step by Step - Arrival in Portugal
I have been researching PT tax all week regarding my NHR status. Very disappointed with my tax bill of €12k. What a waste of time. Seems like this status only works in your favour if you have already paid taxes in the UK or whatever country you from and receive the money.
You will score only if PT taxes are higher than the country you earn the money from. You can elect the country you want to pay tax to if the DTA states so.
Had I paid tax to South Africa I would have paid half the amount.
You will score only if PT taxes are higher than the country you earn the money from. You can elect the country you want to pay tax to if the DTA states so.
Had I paid tax to South Africa I would have paid half the amount.
#49
BE Enthusiast
Joined: Jul 2016
Location: Alvaiázere, central Portugal
Posts: 591
Re: Step by Step - Arrival in Portugal
I have been researching PT tax all week regarding my NHR status. Very disappointed with my tax bill of €12k. What a waste of time. Seems like this status only works in your favour if you have already paid taxes in the UK or whatever country you from and receive the money.
You will score only if PT taxes are higher than the country you earn the money from. You can elect the country you want to pay tax to if the DTA states so.
Had I paid tax to South Africa I would have paid half the amount.
You will score only if PT taxes are higher than the country you earn the money from. You can elect the country you want to pay tax to if the DTA states so.
Had I paid tax to South Africa I would have paid half the amount.
Without asking you for figures, could you explain the sources of your income?
#50
Banned
Joined: Oct 2012
Posts: 26,724
Re: Step by Step - Arrival in Portugal
I have been researching PT tax all week regarding my NHR status. Very disappointed with my tax bill of €12k. What a waste of time. Seems like this status only works in your favour if you have already paid taxes in the UK or whatever country you from and receive the money.
You will score only if PT taxes are higher than the country you earn the money from. You can elect the country you want to pay tax to if the DTA states so.
Had I paid tax to South Africa I would have paid half the amount.
You will score only if PT taxes are higher than the country you earn the money from. You can elect the country you want to pay tax to if the DTA states so.
Had I paid tax to South Africa I would have paid half the amount.
.EG pensions vs dividends.
Certain incomes qualifying for NHR status others do not.
Those incomes that are not subject to NHR being taxed at the higher PT rate if not taxed at source.
Maybe your issue is more about the advice you were given , ?
#51
BE Forum Addict
Joined: Aug 2012
Location: Viana do Castelo
Posts: 1,385
Re: Step by Step - Arrival in Portugal
The NHR act is very complicated and has undergone some changes over the years.
PwC and KPMG has not amended their versions for years and are outdated. The best place to read it would be on portal.finanças.gov.pt.
I earn Capital from Investments with Dividends and could fall in the E or G groups of types of income depending on "if read together with Article 10.1 (b), (e) and (f)". Very confusing.
The DTA states that Dividend Withholding Taxes are to be paid at source but is capped at 15%. "Capital Gains Tax "MAY" be paid to the other state."
The finanças website states that "if CGT was paid to the other state then the difference of the 28% tax for NHR residents must be paid to PT". A flat NHR rate of 28% must be paid to Finanças if not paid to the other state.
No deductions are allowed for Medical, Dependents, non working spouse etc.
Under the NHR scheme, foreign earnings "MUST" have been paid to the other state to get full exemption here.
Even my accountant is confused and has been waiting for advice from the Accountant Board Forum for a week now.
PwC and KPMG has not amended their versions for years and are outdated. The best place to read it would be on portal.finanças.gov.pt.
I earn Capital from Investments with Dividends and could fall in the E or G groups of types of income depending on "if read together with Article 10.1 (b), (e) and (f)". Very confusing.
The DTA states that Dividend Withholding Taxes are to be paid at source but is capped at 15%. "Capital Gains Tax "MAY" be paid to the other state."
The finanças website states that "if CGT was paid to the other state then the difference of the 28% tax for NHR residents must be paid to PT". A flat NHR rate of 28% must be paid to Finanças if not paid to the other state.
No deductions are allowed for Medical, Dependents, non working spouse etc.
Under the NHR scheme, foreign earnings "MUST" have been paid to the other state to get full exemption here.
Even my accountant is confused and has been waiting for advice from the Accountant Board Forum for a week now.
#52
Banned
Joined: Oct 2012
Posts: 26,724
Re: Step by Step - Arrival in Portugal
The NHR act is very complicated and has undergone some changes over the years.
PwC and KPMG has not amended their versions for years and are outdated. The best place to read it would be on portal.finanças.gov.pt.
I earn Capital from Investments with Dividends and could fall in the E or G groups of types of income depending on "if read together with Article 10.1 (b), (e) and (f)". Very confusing.
The DTA states that Dividend Withholding Taxes are to be paid at source but is capped at 15%. "Capital Gains Tax "MAY" be paid to the other state."
The finanças website states that "if CGT was paid to the real state then the difference of the 28% tax for NHR residents must be paid to PT". A flat NHR rate of 28% must be paid to Finanças if not paid to the other state.
No deductions are allowed for Medical, Dependents, non working spouse etc.
Under the NHR scheme, foreign earnings "MUST" have been paid to the other state to get full exemption here.
Even my accountant is confused and has been waiting for advice from the Accountant Board Forum for a week now.
PwC and KPMG has not amended their versions for years and are outdated. The best place to read it would be on portal.finanças.gov.pt.
I earn Capital from Investments with Dividends and could fall in the E or G groups of types of income depending on "if read together with Article 10.1 (b), (e) and (f)". Very confusing.
The DTA states that Dividend Withholding Taxes are to be paid at source but is capped at 15%. "Capital Gains Tax "MAY" be paid to the other state."
The finanças website states that "if CGT was paid to the real state then the difference of the 28% tax for NHR residents must be paid to PT". A flat NHR rate of 28% must be paid to Finanças if not paid to the other state.
No deductions are allowed for Medical, Dependents, non working spouse etc.
Under the NHR scheme, foreign earnings "MUST" have been paid to the other state to get full exemption here.
Even my accountant is confused and has been waiting for advice from the Accountant Board Forum for a week now.
What it can do is give exemptions on " certain " sources of income, but not all.
Last edited by EMR; Aug 6th 2017 at 9:41 am.
#53
Forum Regular
Joined: Apr 2017
Location: Greater Lisbon
Posts: 263
Re: Step by Step - Arrival in Portugal
Imagine the following, indeed extreme, example - an experienced NHS consultant takes an early retirement at 58 and goes to Portugal. NHR is not a problem at all so he gets that easily. And he works few weeks a year in a local hospital, otherwise enjoying his retirement.
Now let's consider the following alternative sources of UK income he may have while NHR in Portugal:
1. He goes to work occasionally in the UK as a consultant and earns £20,000 pa either as an employee, or as a self-employed. This would be exempt from Pt tax, with only UK tax payable.
2. He has a BTL portfolio in the UK managed by his UK Ltd company, which earns him dividends of £20,000 pa. This shouldn't be exempt from Pt tax and tax in Pt would be paid in addition to UK tax as any dividends from BTL have nothing to do with his profession that earned him NHR status in the first instance.
#55
BE Enthusiast
Joined: Jul 2017
Location: Algarve
Posts: 569
Re: Step by Step - Arrival in Portugal
To import your car from another EU country into Portugal will take how long? Is it better to ask help from a professional to do this?
#56
Re: Step by Step - Arrival in Portugal
Takes a lot of paperwork, best to get a Customs agent, they charge about €400,- Process can be quite quick, ten-fifteen days if you have all the paperwork that is necessary
#57
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Joined: Jul 2017
Location: Algarve
Posts: 569
Re: Step by Step - Arrival in Portugal
We will have all the paperwork, so approx 2 weeks is quite quick.
Does anyone know a Customs agent/ specialist in the Algarve who can help us with this?
Does anyone know a Customs agent/ specialist in the Algarve who can help us with this?
#59
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Joined: Jul 2017
Location: Algarve
Posts: 569
Re: Step by Step - Arrival in Portugal
In this thread I can find a lot of useful info!!!
Thanks!!
Thanks!!
#60
BE Forum Addict
Joined: Aug 2012
Location: Viana do Castelo
Posts: 1,385
Re: Step by Step - Arrival in Portugal
As I said, it gets complicated. If the DTA states that PT has sole rights to tax you on your foreign earnings then the NHR status will be void and you will pay the same tax as locals.
My misunderstanding of the word "property" has cost me a large tax bill here. It is not bricks and mortar only. It includes investments in stocks and other securities.
Had I stayed in South Africa, my tax would be 3x less than here.
My misunderstanding of the word "property" has cost me a large tax bill here. It is not bricks and mortar only. It includes investments in stocks and other securities.
Had I stayed in South Africa, my tax would be 3x less than here.