mikemike

Was referring to CGT and in my case on share portfolio

Ukkram

As were we.

mikemike

So capital gains is treated as income? as your response does say income, not capital gains.

Ukkram

Income can be in the form of interest, dividends, capital gains, royalties etc. They are all taxed differently and especially so if they are foreign earned.
Capital gains are taxed at a fixed rate of 28% from the first euro. No exclusive amount.
Dividends are capped by the DTA at 15%.
Interest is capped by the DTA at 10%.

mikemike

So Capital gains tax is not applied, it is instead treated as income for income tax purposes. Does make me wonder why they mentioned this so specifically. Yet reading the article it does mention Capital gains on investments without excluding stocks/shares; so they would not fall under the NHR?

''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.''

I understand that articles like this are not in depth. Yet taken at face value does suggest an exemption on investments. Without identifying which investments may or may not be exempted ie sale of property of sale of Stocks. So despite falling under NHR tax exemption for the first 10 years, they are still subject under DTA ? I confess I am confused, perhaps all too easily.

Ukkram

CGT has been debated on two threads here over as many days. There are links provided leading to financial houses explaining NHR and CGT. I have personal experience on NHR and CGT that I have explained here.I will do so one more time.

All foreign income will be exempt from PT tax under NHR if the DTA gives the source country the right to tax it.
Unfortunately CGT is a residency based tax because the DTA states that it can only be taxed in the country of residency. This is not only UK-Portugal DTA but most DTA's. They are pretty much copy and paste.

sambo76

This is an excellent summary of foreign income & the NHR, thank you. I hope more people find this!

dingg

https://www.blevinsfranks.com/news/a...ital-gains-tax

Some new changes this year may be of interest

qianh

I don't think the article is 100% true, if you read the official document from financas, it says the earnings from work etc from foreign sources is tax exempted PROVIDED IT'S TAXED AT SOURCE. I feel lot of people are mislead by agencies providing NHR services.

qianh

It's probably best to refer 'Portuguese tax code' or such official document rather articles on website, there are lots of misinformation. But to be honest, the official document probably would make you more confused!