The end of 10 years RNH nears .... what will you do?
Jun 15th 2019, 8:09 am
#31
BE Enthusiast
Joined: May 2014
Location: Burgau Portugal
Posts: 462
Re: The end of 10 years RNH nears .... what will you do?
Hmmm....I think you'll find that the Italian community in Olhao are not there because they like Portuguese food and the immense growth in French purchases is driven as much by punitive taxes at home as by security considerations. Just a few years back, it was rare to see any great number of French people holidaying outside France, let alone buying property.....
The 2019 Global Peace Index ranks Portugal as the 3rd most peaceful country out of 163, France comes in 60th.
Jun 15th 2019, 12:23 pm
#32
Just Joined
Joined: Apr 2019
Posts: 4
Re: The end of 10 years RNH nears .... what will you do?
USA ....
Jun 15th 2019, 12:24 pm
#33
Just Joined
Joined: Apr 2019
Posts: 4
Re: The end of 10 years RNH nears .... what will you do?
Context ... USA would be the source country of the pension.
Jun 15th 2019, 1:11 pm
#34
Banned
Joined: Oct 2012
Posts: 26,724
Re: The end of 10 years RNH nears .... what will you do?
DTA means that you cannot be taxed twice, having to pay the difference between tax rates is not double taxation...
Jun 15th 2019, 1:18 pm
#35
Polished expat
Joined: Jul 2014
Location: Arcos de Valdevez "Onde Portugal se fez"
Posts: 16,829
Re: The end of 10 years RNH nears .... what will you do?
And once again that doesn't alter what I posted about tax on UK pensions paid to residents of Portugal.
Jun 16th 2019, 7:52 am
#36
BE Forum Addict
Joined: Jun 2012
Posts: 3,032
Re: The end of 10 years RNH nears .... what will you do?
Tax rates are a major part of anyone's financial reality; and fiendishly complex too.
I tried to do tax simulations for various incomes in various countries; property tax ,income tax, sales tax, energy tax, and health insurance costs.
It's all different depending on your age, residence, country where your income is sourced, type of income, deductions...
Moving residence is a very expensive proposition too.
In the end, the difference in your spending power is probably not much. Most countries tax to the limit of economic viability, which is near the same amount. They just tax from different angles so it looks different.
If we moved to the US, our federal taxes would be wonderfully low; it looks pretty attractive at first, but then I found we'd pay almost all of it back in health costs, insurance, and local taxes.
It's similar with other countries.
I did figure out that if we moved to Cyprus, a weird clash of tax definitions and treaties would seem to present the possibility that our particular income would be taxed at 0%.
Since we don't want to live there, I didn't go to the next stage, hiring a tax professional there to try and figure out if it's true. And even if it were so, you never know when a loophole will be closed.
Death and taxes...
I tried to do tax simulations for various incomes in various countries; property tax ,income tax, sales tax, energy tax, and health insurance costs.
It's all different depending on your age, residence, country where your income is sourced, type of income, deductions...
Moving residence is a very expensive proposition too.
In the end, the difference in your spending power is probably not much. Most countries tax to the limit of economic viability, which is near the same amount. They just tax from different angles so it looks different.
If we moved to the US, our federal taxes would be wonderfully low; it looks pretty attractive at first, but then I found we'd pay almost all of it back in health costs, insurance, and local taxes.
It's similar with other countries.
I did figure out that if we moved to Cyprus, a weird clash of tax definitions and treaties would seem to present the possibility that our particular income would be taxed at 0%.
Since we don't want to live there, I didn't go to the next stage, hiring a tax professional there to try and figure out if it's true. And even if it were so, you never know when a loophole will be closed.
Death and taxes...
Jun 16th 2019, 8:48 am
#37
Resident Cynic
Joined: Aug 2013
Location: Suffolk,UK; Alentejo, Portugal
Posts: 14,965
Re: The end of 10 years RNH nears .... what will you do?
I agree. For me, it makes more sense to remain a "visitor" than to take residency, purely because my assets are not here (although it's gradually getting that way) and the impact on my personal way of life counterbalances the attraction of living in Portugal full time. Rather like the fact that I retained (thank God) my Irish citizenship, even when it would have been cheaper and more convenient to change. Then again, apart from having the advantage of being an EU citizen, I'm married to a Portuguese citizen..... so my situation is a bit different to others of this parish.
Jun 16th 2019, 9:26 am
#38
Polished expat
Joined: Jul 2014
Location: Arcos de Valdevez "Onde Portugal se fez"
Posts: 16,829
Re: The end of 10 years RNH nears .... what will you do?
I did figure out that if we moved to Cyprus, a weird clash of tax definitions and treaties would seem to present the possibility that our particular income would be taxed at 0%.
Since we don't want to live there, I didn't go to the next stage, hiring a tax professional there to try and figure out if it's true. And even if it were so, you never know when a loophole will be closed.
Since we don't want to live there, I didn't go to the next stage, hiring a tax professional there to try and figure out if it's true. And even if it were so, you never know when a loophole will be closed.
I know someone mentioned a mooted scheme in Italy but even without any favourable treatment scheme (assuming that's not actually the draw and it's just a low tax regime that's sought), one can find such a thing. And within the EU, to boot. The OP, I think, mentioned how good it would be for Portugal to set a tax rate for pensions from abroad at 7 - 10% - certainly achievable in Bulgaria, where there's a flat income tax rate of 10% applicable to all.
