morro

I know that there are hundreds of answers bouncing around!
From the 1st of January I will own a holiday home and a Portuguese car in Portugal. I will continue to live in Wales but visit Tavira for 4 or 5 months a year. I will abide by the 90 days rule.I will continue to pay my tax the UK. I will remain a UK resident. I pay all relevant municipal and car taxes in Portugal.
I assume that I do nothing!

EU.flag

Every non-EU national must have tax rep from new year.

toots sweet

Where did you get this information? I havn't heard anything about this at all. Is this just something that you have heard about or is it from some official documents, government declaration?

Bomber Harris

Presumably from the same place everyone else has, Article 16.6 of the Portuguese tax law;
"Os sujeitos passivos residentes no estrangeiro, bem como os que, embora residentes no território nacional, se ausentem deste por período superior a seis meses, bem como as pessoas colectivas e outras entidades legalmente equiparadas que cessem a actividade, devem, para efeitos tributários, designar um representante com residência em território nacional."

If the taxpayer's address is within the EU it doesn't apply, a UK address isn't an address within the EU anymore.

toots sweet

So ..if you are a non tax payer in the UK, this does not apply? Or if you spend 6 months in PT and 6 months in UK?

morro

I stated that I would only be in Portugal for 4 or 5 months a year - that is less than 6 months! So below the tax limit.

Bomber Harris

It has nothing to do whether or not your income tax liability is to Portugal or any other country.
If you have a NIF number it has to be registered to an address, that address must be in the EU. If it isn't you have to appoint a fiscal representative in Portugal.

morro

I have a NIF number, registered at my address in Tavira. I had to have one to get a bank account to buy the house. So no need for a fiscal rep?

Bomber Harris

The legal text is as I quoted above. The way I read it is you will need one because you do not reside in Portugal.

chislenko

Morro, think it may be time to find some passing French pensioners with a wad of Euro's and sell up.
In exactly the same position as you and getting to the point of wondering if it's all worth it.

Rambling archer

Also I was under the impression that if you have a UK or foreign license, not registered with IMT as a Portuguese resident (with the proviso that you agree to exchange it for a Portuguese license within 2 years), you cannot drive a Portuguese registered car. I suspect a lot of people with a second home in Portugal have got a cheap run-about with Portuguese registration plates for use here at their holiday homes but the license and insurance needs to be Portuguese. Now after Brexit, UK license holders becoming resident have to exchange for Portuguese license immediately to be able to drive Portuguese car. If you are non-resident, holding UK license you can only drive UK registered car ...

Anyone care to comment/confirm?

chislenko

So another question as people on here seam to have read up a lot more than me!

So if one does sell up are there going to be restrictions / extra charges on transferring what would be quite a considerable sum of money back to the non EU Britain?

Bomber Harris

A UK DL is now classed as a third country licence. It is valid in Portugal for 185 days if the holder isn't a resident of PT, including being valid for driving a PT registered car (hired or owned by them) BUT, if the holder is, or becomes, a PT resident it is only valid as a licence to drive for 90 days from the date of becoming resident.

Bomber Harris

I seem to recall reading somewhere there will be a maximum limit per single transfer.
I anticipate there being capital gains tax implications because if buying a property back in the UK you won't be re-investing the gains in another property within the EU.

wellinever

Depends what exchange rate you got when you bought and how much gain you have made whne you sell, from the declared value when you bought.
Lots of people bought at £1.00 to €1.50 about 10 years ago, so if you could sell now at €1.10 thats a good profit, but you cannot make a reinvestment in the UK any longer (not unless Portugal decides to allow it, which they could do), so a non resident will have to pay 28% tax on any declared gain
Apart from that if Portugal follows the French then obtaining a visa for 3 or 4 (not affecting the 90 days) or how long you want without becoming resident and therefore not needing to change your dl will be the easier option for anyone not wanting to be a resident......my brother lives in France and is long term resident and he has just sent me all of the info now going round from the French gov. So no worries for no residents, have a visa instead.