Tax on Pensions.

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Old Oct 14th 2017, 5:10 am
  #31  
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Default Re: Tax on Pensions.

Originally Posted by Red Eric
Word has it that the government have not included any changes to NHR in the 2018 budget and have postponed any decisions on the matter until a discussion on such schemes in general in the EU has taken place.
Interesting information, Red Eric. May I ask your source?
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Old Oct 14th 2017, 5:58 am
  #32  
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Default Re: Tax on Pensions.

TSF radio - who got it from "a government source"

https://www.tsf.pt/economia/interior...o-8840682.html
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Old Oct 14th 2017, 6:04 am
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Default Re: Tax on Pensions.

Thanks. Looks promising, if not quite definitive at this stage.
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Old Oct 14th 2017, 6:21 am
  #34  
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Default Re: Tax on Pensions.

I'm not sure where it leaves things if confirmed that it isn't in the budget although I presume changes could be enacted by some other method at any time.
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Old Oct 14th 2017, 7:04 am
  #35  
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Default Re: Tax on Pensions.

Originally Posted by GeniB
When we arrived in Portugal in Oct 2010 we were told that the NHR scheme was still being discussed ,but we wouldn't be accepted because our pensions came from the Netherlands and they were vehemently opposed to the scheme(not quite what was said in the Portugal news today,making out that they were only just aware of it)
Swing Green told us that four other Dutch couples were fighting for the right to go on the scheme at that time ,with the Dutch tax offices.
The Dutch meanwhiie had given us six months to provide them with a permanent address for our pensions. We bought a villa and moved in in April 2011, becoming resident in August. We were thus resident on Dec31st so paid tax for 2011. Unbeknown to us at the time, that automatically made us ineligible for NHR... Which I believe had been ratified in the Portuguese political press earlier in the year which then made it legal . Rumour had it that it had been put into practice in Lisbon the previous year however .We were naturally less than pleased with the advice given to us in the Algarve which seemed to be at least six months behind the facts.
I still doubt however that the Dutch tax office would have allowed it anyway .We never heard anything more about the four other couples. success or failure ?
Some of the argument put forward by the Dutch, was about pensions derived from annuities. against those that were from occupational ones
It would seem to me that the Portuguese minister might take a leaf out of the Dutch tax offices book and offer ex-pats a very low tax (in place of the exemption) and for a limited but reasonable period of time 10 + yrs for instance.(altho I thought this was already part of the NHR's scheme ? not sure This scheme has run in the Netherlands for at least 35 yrs to encouraged highly skilled foreign workers to move there
The tax rate was a straight 35 % then (not bad if you consider that we were paying 71% at one time)
It is a tad galling then that the Dutch are amongst the most vociferous against the Portuguese scheme,especially as they are also notorious for offering 'address's for large companies and pop groups etc to avoid paying tax in their home countries. Hypocrites
I don't understand this.
Dutch are eligible for the RNH! Dutch have the same rights to RNH than all the other nationalities. BUT ...... according to the tax treaty, the Netherlands can tax your Dutch pension, even with the RNH. When you have rental income, interest coming from outside Portugal, that is for Dutch tax free in Portugal under the RNH.
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Old Oct 14th 2017, 7:49 am
  #36  
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Default Re: Tax on Pensions.

Originally Posted by Pilou
I don't understand this.
Dutch are eligible for the RNH! Dutch have the same rights to RNH than all the other nationalities. BUT ...... according to the tax treaty, the Netherlands can tax your Dutch pension, even with the RNH. When you have rental income, interest coming from outside Portugal, that is for Dutch tax free in Portugal under the RNH.
Don't understand this either Pilou What is RNH ?

We don't have any rental income?

This was at the very start of the NHR scheme when no one in the Algarve seemed to know what was going on.What was legal or not. The single most important piece of information for people like us was missing , that once you had paid tax in Portugal.you were automatically disqualified from the scheme.

Dutch officialdom had insisted that we had a permanent address to receive our pensions . Maybe we were naive in jumping so quickly through those twin hoops of permanent address and residency. It was all very confusing at the time. As anyone can testify when they move to a new country,.
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Old Oct 14th 2017, 4:26 pm
  #37  
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Default Re: Tax on Pensions.

Originally Posted by Red Eric
Word has it that the government have not included any changes to NHR in the 2018 budget and have postponed any decisions on the matter until a discussion on such schemes in general in the EU has taken place.
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