Sailfree

In the process of buying a property in Nazare. Can anyone recommend a English speaking accountant that can submit my NHR status application at a reasonable cost. Preferably based near Nazare or Lisbon. Thanks

Ukkram

It is a simple process and you need not physically get in touch with an accountant. Get in touch with Tony1. He often posts here or drop me a PM. I did mine via email plus he registered me for e-filing at the same time and posted my returns.
No need to go to an expensive accounting firm either.
Contact Us - Expat Consulting Portugal

Sailfree

Thanks for reply.

I believe I have to get official resident status before registering for tax and NHR applications. That's my problem if I go about it the wrong way and miss an important item just want to get it right first time to achieve NHR status asap. I assume your link is to Tony1. I have a PM but cant access it yet as i'm a new boy - need to be a veteran!!

Ukkram

No Sail. You must first get a NIF number from the tax office and then apply for NHR. The NHR will then be attached to your NIF number.
You cannot apply for NHR status without a tax number.
I think you need 3 posts to get access to PM's. ???

Sailfree

Thanks for all advice it is much appreciated. Now exchanging e mails with tony and awaiting his reply.

Can now access PMs

As you understand more you also come up with more queries.

I thought Fiscal number merely enabled you to rent/buy property and obtain bank account and registering to become a Portuguese tax resident was a different step. Is this true?

I know the NHR will not assist with civil servant, police, or military pensions but are annuities that are paid as a lump sum one a year treated differently. Anyone know?

Munsterfan

" I know the NHR will not assist with civil servant, police, or military pensions" Is this TRUE we were mostly thinking of our Civil service Pension which is taxed in Ireland ... any one out there know if NHR is not a help for A Civil Service Pension, semi state Superannuation scheme (retired Fireman)....no need to waste me time!

cedricp

Double tax treaty (Article 17 - Pensions)

(1) Any pensions and other similar remuneration (other than pensions or remuneration to
which Article 18 applies) paid in consideration of past employment to a resident of a
Contracting State and any annuity paid to such a resident shall be taxable only in that State.

(Article 18 - Governmental Functions)

(1) (a) Subject to the provisions of sub-paragraph (b) of this paragraph, remuneration or
pensions paid out of public funds of the United Kingdom or Northern Ireland or of the funds of
any local authority in the United Kingdom to any individual in respect of services rendered to
the Government of the United Kingdom or Northern Ireland or a local authority in the United
Kingdom in the discharge of functions of a governmental nature, shall be taxable only in the
United Kingdom.
(b) Where the individual is a Portuguese national without also being a United
Kingdom national, sub-paragraph (a) of this paragraph shall not apply, but the
remuneration or pension shall, for the purposes of Article 22, be deemed to be
income from a source within the United Kingdom.

So unless you are a Portuguese national, then luck is not on your side

cedricp

No, they are the same. You can have a NIF as a non-resident or a resident. In order to qualify for NHR you must become a resident, in which case, after obtaining your residency certificate you should change the details held by Finanças such that your fiscal information shows you are a resident.

Munsterfan

So me is a simple witted girl and myself and mePat have NOTHING to do income wise with UK or the 6 counties in the north of Ireland. So NHR IS a good thing to participate in to mitigate or manage the double taxation for a 10 year period even if it is a Civil service Pension..... did I read your information correctly, cedricp?

cedricp

No, a civil service pension can not be received tax free under NHR because it will be taxed in the UK.

Munsterfan

Hmmmmm so the NHR reduced tax offer DOES cover Civil service pensions in NON-UK countries (Ireland has nothing to do with the UK ...(they did gain independence for some of the island)? So as this income is earned AND taxed outside of Portugal (Jaysus where is the book 'NHR for DUMMIES') it 'IS' eligible under the NHR umbrella for the 10-years reduced tax rate ....yes? or no?

cedricp

Sorry, I didn't read your post properly. Looking at the Ireland/Portugal tax treaty it seems the same applied.

Double Taxation Treaty between Ireland and Portuguese Republic


According to 2b), you are resident of Portugal but not a national so the pension is taxed in Ireland.

Sailfree

I am grey haired but must be having a blond moment!!

I read that as saying if I earn the pension or annuity in State UK it must be taxed in State UK even if I become a tax resident of State Pt.

Can someone explain the above Cl17 better as info on NHR states that a UK state or occupational pension is taxed at 0% in Portugal and is free of UK income take if you are a tax resident of Portugal.

Sorry to be so thick!

cedricp

If you are resident in Portugal then your pension is paid to and taxed in Portugal (subject to Article 18 which relates to government service pensions).

Sailfree

Can you please clarify "paid to" paid to Portuguese State? paid to my Portuguese bank account or to my UK bank account.

I accept what you say as it agrees with all info on NHR status I have read but I find it difficult to interpret the words of the Cl17 quoted to mean that.

Is an annuity taken out with a UK insurance company treated differently from pensions paid monthly?