m2m2012

Hi Everyone. I was planning an exploratory trip to Spain in summer last year with airline tickets already booked when Covid hit so I had to cancel. I'm still seriously thinking of making a move but perhaps Portugal is a better option for me because of the non-habitual resident tax scheme. All these things are complex but my situation perhaps makes it even more so.

I'm Aussie born with an Aussie passport but I also have an EU passport and ID Card through ancestry...BUT I have never been an EU resident or tax resident. So I don't have any type of EU medical insurance, I don't have an EU driver's license (I have an Australian), I don't have an EU bank account. In recent years I've been living a nomad lifestyle moving to different countries every 3 to 6 months.

In choosing an EU country to move to the most important criteria is the taxation system. My only income is from rental properties located in a non-EU country. My gross income is decent but my operating expenses are large so I need to live in an EU country that will not tax me into poverty. There are huge differences between EU countries on how they tax and what deductions they allow for foreign rental income. For example, Estonia allows no deductions at all on foreign rental income. Spain is a bit better than Estonia but I fear they may change the rules because of the economic damage Covid has done to their economy. I also don't like that Spain has a wealth tax.

With a non-habitual resident status there would be no tax from Portugal on my foreign rental income I believe. I don't plan to work in Portugal so I would not benefit the non-habitual resident lower tax rates.

Here are my questions:

1. To qualify for non-habitual resident status do I need to have a certain profession? If you don't have one of the accepted professions you cannot get this status? It's really important that I know this.

2. How much does it cost to rent a basic but decent small apartment or house about 30-45 min drive from the sea? It doesn't have to be near Lisbon or in an expensive region but near a good sized town would be good.

3. Not including rent, can you live on around 1500 euros a month including maintaining a car? How much a month do you spend on electricity, water, gas, internet, mobile phone, local taxes, etc?

4. Would I need to buy medical insurance?

5. If I (an EU citizen), wanted to bring a non-EU partner with me and their children is there a requirement that I have a certain income? If yes, what would that amount be?

Any other advice or tips would be most welcome. Thanks.

Red Eric

Hi, and welcome to the Portugal forum from me

No, you do not.

Yes, a single person can easily live quite comfortably on that. Even a couple can if they have no rent or mortgage to pay out of it, although if you're living in some kind of luxurious accommodation with pool / central heating / AC / + + + you may have to adjust accordingly.

Given the following question, no, not at any stage.

Yes.

See here

Lou71

Eric, that document appears to apply to third country applicants.

I wrote to the EU about this and my understanding is that EU nationals can freely move to any EU state with their (durable) non EU partners and dependents and are not subjected to the same minimum income criteria as third country nationals. You can also apply for residency in the relevant EU state as opposed to your home (third) country.

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Bomber Harris

The income and health insurance requirement for EU citizens (and their non EU family members) seeking residence in PT are specified in Article 7.1b of Lei 37/2006.

Have sufficient resources for themselves and their family members, as well as health insurance, as long as Portuguese citizens are required to do so in the Member State of their nationality;

m2m2012

Red Eric thanks for your reply.

Is there any non-profit or for-profit organisations that offer advice/assistance to people wanting to move to Portugal? I'm thinking something like the "Citizens Advice Bureau Spain" that operates there.

What are the best websites for finding apartments/houses to rent or to buy?

m2m2012

I was also thinking this.

For a EU national wanting to move to Portugal alone, is there any need to prove their income? If so, what is the amount?

Red Eric

My apologies - Lou's quite right, but as Bomber Harris points out, there is a means of subsistence criteria nevertheless.

I don't think it's ever been satisfactorily established exactly what the threshold would be in numbers but but the principle is that you must have above the level at which social assistance benefits would apply.

From the many posts on here on the subject in the past, it varies as to whether one is asked to provide any proof of means. In some cases the subject wasn't even touched upon, in others it was a matter of signing a statement to say they had sufficient but not having to provide proof and in others evidence was required. I'd say it'd be best to be prepared for the latter and be pleasantly surprised if it's not asked for.

Rambling archer

As an EU citizen with EU citizen, take a look at this - https://www.sef.pt/en/Pages/conteudo...he.aspx?nID=22 - for EU citizens wanting to move to Portugal (with families also)
and this - https://www.sef.pt/en/Pages/conteudo...he.aspx?nID=22
As an Aussie - take a look at requirements for persons not of Portugal nor of EU-member citizenship - https://imigrante.sef.pt/en/entrada-em-portugal/

The main criteria for the Non-Habitual Residency tax situation is that you have NOT been HABITUALLY resident in PT over the five years previous to your residence start date. So the thing to do is to establish your residency (EU citizens relatively easy), 3rd country (Aussie) via visa a proof of income/assess-to-funds, and take note of the order you have to do things in. A complication might be in establishing where your previous residency has been (to show that you were not in PT !) and that has been asked for in the past, as you have been nomading. The NHR is just a formality in completing a form online with the tax office. You have to declare ALL your worldwise income (so they can decide which tax bracket to put you in, in case you should eventually have tax to pay) but there is a separate part of the Tax Self-Declaration form to be completed for all the incomes that are Exempted/reduced, eg under the NHR scheme, and these should include your rental incomes from abroad, eventual pensions, etc.

Once you have residency established you are entitled to join the National Health Service (SNS), purely as being a PT resident. You might be well advised to take private medical insurance while you get yourself established. To do anything in PT money-wise, renting apartment, sorting out taxes, etc you will need first to get the national tax number NIF from Finanças (tax office) and then get a bank account in PT. Both these can be done pre- resident as a non-resident and then easily transformed once you have your new address in PT established as Resident.

Hope this helps.

Lou71

Obtaining EU residency is a doddle for EU nationals and the Portuguese authorities are not overly stringent regarding income. We just showed them our latest UK tax returns but they were singularly uninterested.

The key point to remember is that EU residency in any EU state is a right for EU nationals and their partners (EU or otherwise) but NOT for third country nationals which, sadly, includes the British now.

m2m2012

Thanks, good info.

Despite being a nomad I have tax residency and file yearly tax returns in the non-EU country where I have my rental properties.

I will be using my EU passport (not my Australian passport) in Portugal. The only situation I see showing my Australian passport is if police question why I gave an Australian driver's license when I have an EU passport.

TonyJ1

You will have to trade in your Aussie driving licence

Rambling archer

but that is a whole different ball game!!!

Good luck on your adventures and let us know how you get on with your move to PT

m2m2012

Yes, I've looked that up and found this:

"The exchange of driving license issued by non-adherent foreign countries to International Conventions on Road Traffic depends on taking and passing the practical test of driving test, for each category of the driver holds. However, enrollment in driving school is not required, so the driver can self propose the examination."

So I guess it's saying I don't do a written test; only a driving test?

I wonder how long can I drive with my Aussie license before having to change over? Also, do I need to have an IDP together with my Aussie license?

m2m2012

Thanks.

Red Eric

The relevant authority on this says no test required but you must start the exchange within 185 days of arrival.

Click on the simulador in this link to verify.