The end of the RNH is near?
#33
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Location: Alvaiázere, central Portugal
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Re: The end of the RNH is near?
As I said, I think it unlikely that any new taxation is applied to those already in receipt of NHR, who should, I hope, be allowed to have their scheme run its course. It depends on whether we are regarded as people, with rights and expectations, who have made their plans on the basis of a particular tax expectation, or merely as parasites on the Portuguese tax system. In our case, we have financial plans in place and have purchased and improved our property, and it would cause us significant problems should we suddenly find our income reduced, and consequently need to alter our plans. Essentially, we cannot unspend what we have already spent, or unplan what we have already planned. Hopefully, before long we will know facts, rather than having to rely on possibly erroneous reporting. and speculation such as this.
#34
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Joined: Dec 2019
Posts: 49
Re: The end of the RNH is near?
I don´t know. It would not surprise me if the review is more wide ranging than has been reported so far, but it seems that pension income is what people are most sensitive about. We can hope that existing non habitual residents are excluded, and that future applicants can still benefit from a preferential scheme, though perhaps not quite as solidly as now.
As I said, I think it unlikely that any new taxation is applied to those already in receipt of NHR, who should, I hope, be allowed to have their scheme run its course. It depends on whether we are regarded as people, with rights and expectations, who have made their plans on the basis of a particular tax expectation, or merely as parasites on the Portuguese tax system. In our case, we have financial plans in place and have purchased and improved our property, and it would cause us significant problems should we suddenly find our income reduced, and consequently need to alter our plans. Essentially, we cannot unspend what we have already spent, or unplan what we have already planned. Hopefully, before long we will know facts, rather than having to rely on possibly erroneous reporting. and speculation such as this.
As I said, I think it unlikely that any new taxation is applied to those already in receipt of NHR, who should, I hope, be allowed to have their scheme run its course. It depends on whether we are regarded as people, with rights and expectations, who have made their plans on the basis of a particular tax expectation, or merely as parasites on the Portuguese tax system. In our case, we have financial plans in place and have purchased and improved our property, and it would cause us significant problems should we suddenly find our income reduced, and consequently need to alter our plans. Essentially, we cannot unspend what we have already spent, or unplan what we have already planned. Hopefully, before long we will know facts, rather than having to rely on possibly erroneous reporting. and speculation such as this.
#35
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Joined: Jul 2016
Location: Alvaiázere, central Portugal
Posts: 591
Re: The end of the RNH is near?
This whole RNH thing has somewhat skewed peoples’ judgement, and can become a primary reason for coming here, rather than as a welcome bonus for being able to live in this wonderful, welcoming and attractive country.
#36
Forum Regular
Joined: Dec 2019
Posts: 49
Re: The end of the RNH is near?
That's exactly how we were looking at it - a bonus in the + column, but certainly not the main factor in any decision. We didn't even know about it until joining this forum! We also don't make enough money that it would make a huge difference for us, anyway. Come to think of it, I'm assuming that residents don't pay tax below a certain income threshold?
#37
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Joined: Mar 2008
Posts: 1,703
Re: The end of the RNH is near?
proposed tax rates for 2020
Taxable Income (EUR) Taxa (%) Deduction (EUR)
Up to 7.112 14,50 0
Above 7.112 and up to 10.732 23,00 604,54
Above 10.732 and up to 20.322 28,50 1194.80
Above 20.322 and up to 25.075 35,00 2515,63
Above 25.075 and up to 36.967 37,00 3017,27
Above 36.967 and up to 80.882 45,00 5974,54
Above 80.882 48,00 8401,21
Taxable Income (EUR) Taxa (%) Deduction (EUR)
Up to 7.112 14,50 0
Above 7.112 and up to 10.732 23,00 604,54
Above 10.732 and up to 20.322 28,50 1194.80
Above 20.322 and up to 25.075 35,00 2515,63
Above 25.075 and up to 36.967 37,00 3017,27
Above 36.967 and up to 80.882 45,00 5974,54
Above 80.882 48,00 8401,21
Last edited by wellinever; Jan 23rd 2020 at 5:41 am.
#38
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Location: Alvaiázere, central Portugal
Posts: 591
Re: The end of the RNH is near?
Interesting new article. Here, it seems that it is the Golden Visa arrangement that is under fire
Idealista report (in Portuguese)
Idealista report (in Portuguese)
#39
Forum Regular
Joined: Dec 2019
Posts: 49
Re: The end of the RNH is near?
proposed tax rates for 2020
Taxable Income (EUR) Taxa (%) Deduction (EUR)
Up to 7.112 14,50 0
Above 7.112 and up to 10.732 23,00 604,54
Above 10.732 and up to 20.322 28,50 1194.80
Above 20.322 and up to 25.075 35,00 2515,63
Above 25.075 and up to 36.967 37,00 3017,27
Above 36.967 and up to 80.882 45,00 5974,54
Above 80.882 48,00 8401,21
Taxable Income (EUR) Taxa (%) Deduction (EUR)
Up to 7.112 14,50 0
Above 7.112 and up to 10.732 23,00 604,54
Above 10.732 and up to 20.322 28,50 1194.80
Above 20.322 and up to 25.075 35,00 2515,63
Above 25.075 and up to 36.967 37,00 3017,27
Above 36.967 and up to 80.882 45,00 5974,54
Above 80.882 48,00 8401,21
#40
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Location: Alvaiázere, central Portugal
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Re: The end of the RNH is near?
I believe, but am not sure, that working people and pensioners have the first 4K or thereabouts tax free, with the taxable amount starting above this.
Anyone know if I am mistaken?
Anyone know if I am mistaken?
#41
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Joined: Mar 2008
Posts: 1,703
Re: The end of the RNH is near?
Hi
I think you may be correct, I have heard this, but accountants that I have ever spoken with, do not even make calculations based on this simple. They ususally talk about marginal rates. Annoys me to death, have given up talking to them.
I think you may be correct, I have heard this, but accountants that I have ever spoken with, do not even make calculations based on this simple. They ususally talk about marginal rates. Annoys me to death, have given up talking to them.
#42
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Location: Alvaiázere, central Portugal
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Re: The end of the RNH is near?
I am waiting for someone to explain here whether, as I have read in some but not all places, there is 4104 Euro disregard of income, with taxable income starting at that figure.
#43
Forum Regular
Joined: Dec 2019
Posts: 49
Re: The end of the RNH is near?
I think you have made an error, here. Tax is levied in bands, so the first band is taxed at 14.5%, the next 3600 is taxed at 23%, and so on. in your case, only a small amount of your income would be taxed at 28.5%, as this rate starts at a taxable income of 10732 euros.
I am waiting for someone to explain here whether, as I have read in some but not all places, there is 4104 Euro disregard of income, with taxable income starting at that figure.
I am waiting for someone to explain here whether, as I have read in some but not all places, there is 4104 Euro disregard of income, with taxable income starting at that figure.
#44
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Joined: Mar 2008
Posts: 1,703
Re: The end of the RNH is near?
Found this webpage trying to explain the system.
Most complicated system I ever came across.
https://gotoportugal.eu/en/taxes-in-portugal/
Not sure about accuracy as it talks about equivalent tax to pay in UK and USA on same imcome.....UK looks wrong to me.
Most complicated system I ever came across.
https://gotoportugal.eu/en/taxes-in-portugal/
Not sure about accuracy as it talks about equivalent tax to pay in UK and USA on same imcome.....UK looks wrong to me.
#45
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Location: Alvaiázere, central Portugal
Posts: 591
Re: The end of the RNH is near?
And that is one of the few showing that 4104 deduction from income, for tax calculation. Many others don’t, though.