mikemike

I am looking at this option as returning to the UK is unpalatable I am married to a non Eu national.

I see that an agency that handles these applications expects to provide a list of acceptable properties to be purchased with their legal advisors handling the conveyancing.

Under the scheme rules the property has to be purchased before applying for a Golden visa. (GV)

1/ Is there a direct method to apply for the GV as I do not want an agent telling me what I can and cannot buy.? The property we have in mind is in excess of 500,000 Euro and has three units that can be rented out in the Estoril area.

2/ The intent is to live there full time and apply for Residents status, not citizenship at this time at the end of the 5 year period.

3/ The initial 10 years of favourable tax treatment that applies to overseas income. Does it also apply to capital gains from investment held overseas. Or is that just added to overseas income.

Thanks I would greatly appreciate any input, more so, from those who have gone through this route.

thank you

mfesharne

Your comment about not wanting to return to the UK suggests you have a UK passport?

In which case (until Brexit is complete) you have right to enter, reside & work anywhere in the EU & your spouse has the same rights under the reunification of family rules so no Golden Visa required if you register residency before Brexit completion date.

If I misunderstand & you do need the Golden Visa route I suggest you don't trust the agency you mention with a bargepole because (from your description) they sound seriously dodgy.

BritInParis

Wishing to return and deciding not to because you believe in a non-existent anti-immigrant sentiment is, frankly, foolish, particularly when compared to the rest of the EU.

mikemike

Yes i am a UK citizen and passport holder.

My concern is that the needed funding will be available until after the Brexit date(yes it could be extended....please)

At the moment I am a UK expat and do not pay income or CGT tax on Uk pensions and share investment gains. Does this apply in Portugal as part of the 10 year incentive scheme. I
believe my pensions will not be taxed in Portugal as my pensions fall under UK income tax and within the nil band rate.

majority of my income is from shares and capital gains.

BritInParis

Given that I live in the UK with my ‘immigrant’ partner and you are presumably residing in the Philippines with yours I would suggest I’m better placed to make that judgement. Don’t believe anything you read in the Guardian. Continental Europe will be far more hostile to a mixed race family than the UK. Continue if you wish but I suspect you’ll have a rude awakening.

Ukkram

NHR will not give you any relief on CGT. You will pay a 28% flat rate with no exclusion amount and no deductions allowed. About 95% of my income is from the sale of shares as capital gains and I have NHR status but still have to pay the 28% tax. The reasoning behind this is that the tax treaty gives Portugal the sole taxing rights on CGT regardless of it's origin being in the UK. This is one of the reasons why I have to leave Portugal. In the UK I would pay no tax on the gains due to the exclusion amount at £ 11 600.00.
Your pension will be exempt for 10 years though.

mikemike

Thank you for your reply, it helps a lot. We have friends in the Estoril area who moved from our part of the world , one 6 years ago and the other 18 months ago. they have found their new homes all that they could have wanted and have no intent on moving back here or going on to the Uk which was the original plan. They live off good pensions and not much in the way of capital gain from investments.

Red Eric

Just in case you haven't yet been completely dissuaded from the idea of the Golden Visa, this is from the PT immigration department's web page on the topic :
Article 90-A – Residence Permit for investment purposes

Lots of lovely info and links in there for those who are eligible, though.

mikemike

Red

thank you

I was thinking that this may be the route to go in event of Brexit coming ahead of capital being available.

Nice to have options

Fredbargate

There is no Capital Gains tax in Gibraltar.
https://www.gibraltar.gov.gi/new/inc...office#ancla20

mikemike

If taxation was the only issue we would stay put as my overseas income and capital gains are tax exempt.

I just need to understand the Portuguese system for CGT which I now have grasped. The property we are looking at(may have to be a different one due to timing) has the main house plus another three units for letting so Income tax on Portuguese rental income will be the main return for us.

schooling for the youngsters looks like private international school

mikemike

I have been doing some more digging as CGT is the tax that concerns me most. I took the following from

https://www.expatica.com/pt/finance/...al_908573.html

I do not believe everything I see on the internet. Yet, if they are correct re CGT exemption under the 10 year NHR scheme, that makes a huge difference to us.

Portugal retirement tax

Since 2009, Portugal has offered a Non-habitual Residence (NHR) option to attract foreigners to the country by offering favourable tax conditions, including for earnings otherwise subject to Portugal retirement tax. The NHR status is available to anyone who has not been a tax resident in Portugal in the last five years, as long as they meet certain criteria.

Those granted NHR status will have any overseas income – including earnings from work, business, investments, rental income, capital gains and pensions – exempt from taxation in Portugal for a period of 10 years. There will also be no tax on wealth during this period. In addition to this, any income generated in Portugal will be taxed at a flat rate of 20 percent instead of at the progressive rates, which can be as high as 48 percent. Learn more about the NHR programme in the government's Portal das

Are they just mistaken?

Red Eric

No - they're just failing to make the distinction between capital gains on moveable vs immoveable property. The former would be taxed, the latter not.

Ukkram

In short. If the DTA allows the UK to tax the income then it will be exempt under NHR status.

Red Eric

And if the income isn't from the UK, then it'll depend on the DTA between Portugal and the country where the income arises