Pilou

Hi,

A lot of people on this forum are enjoying the 10-years RNH. But time flies and the question is what would you do?

1. stay in Portugal as a resident and pay your income tax in PT?
2. keep your house as a non-resident and only stay less than 6 months?
3. sell and leave Portugal?
4. any other choice?

And what will Portugal do when thousands of people will come at the end of the RNH?

We are Dutch and we need to pay our income tax on our pension in the Netherlands as long as we profit from the RNH. After the 10-years period we will pay income tax in Portugal if we plan to stay. According to the tax treaty the Netherlands avoids any advantages Portugal wants to give to expats. Sweden followed this example recently .....

We don't know at this moment if we will stay resident or not. What we know is that we will pay a lot more income tax in PT than in France (where we have lived some years ago) after the RNH.
The state health care is also an item we need to take into account.

But what will Portugal do when as of 2023/ 2024 thousands of people will end their RNH period? I think that more than 50% will leave Portugal as a resident. Or Not?
On the other hand more and more countries want to change the tax treaty with Portugal and claim that pensions will be taxed in the source-country.

When I could decide for Portugal, I would stop the RNH for new expats in a couple of years. Then I would tax all pensions and other income from outside Portugal at a flat rate of 7.5% or 10%.
Is this unfair towards the Portugese people, who pay more income tax? No, because these pensions were built up abroad with tax facililies in those countries.

Looking forward to your reaction!

EMR

It was bought in a a reaction to the crisis. The collapse in property sales.
Those days are over so no need to extend it.
I would not be surprised to see more countries blocking export of tax free incomes.
Tax being paid in the country where the income originates.

chislenko

Think not what your country can do for you, rather think what you can do for your country!

Ukkram

It is not feasible to change tax treaties with so many countries as it will take years to do so. A simpler way to do it would be for Finland, NL, Sweden and others to come to an agreement with Portugal to not allow their nationals to apply for NHR.

GeniB

You were extremely lucky to be allowed to have the RNH Pilou... The Netherlands wouldn't allow us to have it. We arrived right on the cusp of its inception and they denied it was possible for us to have it. forcing us to pay tax in Portugal. Of course once you have done that you become automatically ineligible for RNH. A bit of a low trick. If the only reason you are here is to escape paying tax like everyone else ,then maybe you should move back to France
.We are British, but lived in NL for over 30 yrs and at one time paid almost the highest level of tax. For us it was a feeling of duty ,a giving back to society for our privileged position. Might sound a tad pompous, but that's how we looked at it. we also saw where the money went in NL it was visible spent on the people. Maybe not so obvious in other countries .

wellinever

LOL.......Shouldnt worry too much, the EU will have imploded in 10 years, and Portugal will be pleased to invite anyone in to pay the bills.

qianh

dingg

N

Red Eric

Enigmatic.

That'll keep 'em guessing

dingg

you'd never make a detective

Hint - look for the bold capital underlined words

👍

Red Eric

Hiding in plain sight, eh?

AliceCaroline

Well we were planning to move to Portugal before we had even heard of the NHR scheme so what we would do is - 1.stay in Portugal as a resident and pay your income tax in PT.

I seriously doubt that many people have moved to another country just to take advantage of a tax scheme like this or maybe I am naive and people are more money orientated than I realise. I'd be happy for anyone who moved here purely to save paying tax to leave again.

GeniB

Quite agree Alice.. We loved the country and its people after coming here on holiday for 26 yrs previous to moving.here. I wouldn't move to another country purely to save on tax. As we found out when we were head hunted ( old term) to work in NL with the lure of higher wages. They hauled that money back by means of many other hidden costs .I know that's true in France as well as French /Swedish friends are coming over next spring to stay with us and look around with a view to moving here. The NHR might be dead by then, its not the only lure.

dingg

My accountant informed me it has been known for some to arrive register nhr draw down completely their pension in one fell swoop and never be seen again - Spain anyone??

Whether this is fact or fancy who knows?

Pilou

Maybe you misunderstood, the Netherlands cannot stop anyone to have the RNH in Portugal. So were were not lucky to have it, BUT we will pay income tax in the Netherlands during our RNH on our Dutch pension, according to the tax treaty. As a result of this, our benefit from the RNH is almost zero.