incoming!!!!!
Nov 28th 2017, 5:44 pm
#1
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incoming!!!!!
first post and lots of questions are buzzing about in my head!
first a little about us
me 57 next march , work offshore oil and gas in uk sector and have done for 30+ years, due to retire very soon (year or two)if myself and wife (year older than me , no employment to worry about) can settle in portugal and decide its for us.
I have a colleague who has a property in the gois region so was possibly planning to rent that from sept next year for 6 months and hope that would be enough time to come to a decision and find a property to purchase, but I'd still carry on commuting back and forth to my job (2 weeks offshore 3 weeks at home rotation , until our minds were fully satisfied we're doing the right thing (would this cause issue with residency or application status timings)?
One of my aims is to retire under the HNR scheme of taxation and have the generous benefit that would provide us.
one immediate question (worry) is if I attained NHR status before selling my property in the uk , would that sum realised be liable to tax under the NHR rules or not ?
obviously this gain is tax free in uk as its our only property , its less clear to me on the pt financial site whether capital gains tax would be due to pt if I had NHR status or not. I will obviously delay NHR status if tax is due on the gain.
I am qualified as a fabrication engineer BUT haven't done much of this work since serving my apprenticeship , but would this be enough to satisfy one of the approved employment jobs for NHR? , I also have offshore commercial diving qualifications but haven't done this work for a long time either; or would my current job of oil and gas production control room technician fulfil the requirement as one of the applicable jobs in the NHR scheme ?
or would it not matter at all as I would most likely be retiring in March 2019 - there is a possibility I may get a rotation of 1 week on 4 weeks off at this time hence the questions re employment but who would I be liable to pay tax to if this came to pass?
If I was still liable to pay tax to uk (I suspect that MAY be the case) could I still be considered to be NHR under pt rules or would I be far better to wait until properly retired from my employment before applying for NHR status and if this is the case what time frame should I use in my 6 months time househunting for applying for residency etc.
thanks in advance for guidance (been getting more confused the more I read tbh)
first a little about us
me 57 next march , work offshore oil and gas in uk sector and have done for 30+ years, due to retire very soon (year or two)if myself and wife (year older than me , no employment to worry about) can settle in portugal and decide its for us.
I have a colleague who has a property in the gois region so was possibly planning to rent that from sept next year for 6 months and hope that would be enough time to come to a decision and find a property to purchase, but I'd still carry on commuting back and forth to my job (2 weeks offshore 3 weeks at home rotation , until our minds were fully satisfied we're doing the right thing (would this cause issue with residency or application status timings)?
One of my aims is to retire under the HNR scheme of taxation and have the generous benefit that would provide us.
one immediate question (worry) is if I attained NHR status before selling my property in the uk , would that sum realised be liable to tax under the NHR rules or not ?
obviously this gain is tax free in uk as its our only property , its less clear to me on the pt financial site whether capital gains tax would be due to pt if I had NHR status or not. I will obviously delay NHR status if tax is due on the gain.
I am qualified as a fabrication engineer BUT haven't done much of this work since serving my apprenticeship , but would this be enough to satisfy one of the approved employment jobs for NHR? , I also have offshore commercial diving qualifications but haven't done this work for a long time either; or would my current job of oil and gas production control room technician fulfil the requirement as one of the applicable jobs in the NHR scheme ?
or would it not matter at all as I would most likely be retiring in March 2019 - there is a possibility I may get a rotation of 1 week on 4 weeks off at this time hence the questions re employment but who would I be liable to pay tax to if this came to pass?
If I was still liable to pay tax to uk (I suspect that MAY be the case) could I still be considered to be NHR under pt rules or would I be far better to wait until properly retired from my employment before applying for NHR status and if this is the case what time frame should I use in my 6 months time househunting for applying for residency etc.
thanks in advance for guidance (been getting more confused the more I read tbh)
Nov 28th 2017, 11:54 pm
#2
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Joined: Feb 2013
Posts: 42
Re: incoming!!!!!
I'm not an accountant or legal professional so none of what I say counts as financial advice. In fact, like you I'm a engineer from the oil and gas business who's just arrived in Portugal under NHR and finding his feet.
Your first source of advice should always come from someone who is qualified here of course, but you should also read the UK-Portugal Double Taxation Treaty carefully. https://www.gov.uk/government/upload...-_in_force.pdf
Articles 6 and 13 describe income from immovable property, and if you stitch it all together it all seems pretty clear:
You will need to refer to the local Portuguese law in that instance, but according to PWC's guide
I have not submitted any income taxes here yet, but you said you are qualified as a fabrication engineer. What level of qualification is this? EngTech? IEng? CEng? or other internationally recognised qualification?
One thing you may have working against you is the title "engineer" or "Engenheiro" is legally regulated in Portugal - equivalent to a Chartered Engineer back in the UK. I decided to cover my backside by registering myself as an Engenheiro with the Ordem dos Engenheiros who issue the title here.
There is also an Ordem dos Engenheiros Técnicos (Order of Engineering Technicians) but it will all depend on how the Portuguese authorities define an engineer
You're certainly likely to qualify for foreign PIT exemption if you would qualify for Engenheiro, but you should seek further advice if you would be a technician.
Your first source of advice should always come from someone who is qualified here of course, but you should also read the UK-Portugal Double Taxation Treaty carefully. https://www.gov.uk/government/upload...-_in_force.pdf
Articles 6 and 13 describe income from immovable property, and if you stitch it all together it all seems pretty clear:
"(1) Gains from the alienation of immovable property, as defined in paragraph (2) of Article 6, may be taxed in the Contracting State in which such property is situated. "
Business and professional income of a non Portuguese source relating to high added value services of a scientific, artistic or technical nature, as well as from intellectual or industrial property or industrial, commercial or scientific information, earned by non habitual residents abroad are exempt from PIT provided such fees could have been taxed under an existing Double Tax Treaty or could have been taxed in another non black listed jurisdiction in accordance with the provisions of the OECD.
Rental income, investment income and capital gains of a non Portuguese source obtained by non habitual residents are also PIT exempt, provided the above mentioned conditions are met
Rental income, investment income and capital gains of a non Portuguese source obtained by non habitual residents are also PIT exempt, provided the above mentioned conditions are met
One thing you may have working against you is the title "engineer" or "Engenheiro" is legally regulated in Portugal - equivalent to a Chartered Engineer back in the UK. I decided to cover my backside by registering myself as an Engenheiro with the Ordem dos Engenheiros who issue the title here.
There is also an Ordem dos Engenheiros Técnicos (Order of Engineering Technicians) but it will all depend on how the Portuguese authorities define an engineer
You're certainly likely to qualify for foreign PIT exemption if you would qualify for Engenheiro, but you should seek further advice if you would be a technician.
Nov 30th 2017, 11:46 am
#3
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Joined: Nov 2017
Posts: 569
Re: incoming!!!!!
thanks for the reply Nim
so looks that if I sell my uk property after gaining NHR status , gains should be tax free , thats good ; and even if taxed by uk as non resident on gains, I've since discovered my gains will be tax free by following an online calculator on the uk hmrc site for non resident capital gains.
re my qualification , all are at tech. level , but I think I may still be able to be covered by the NHR rule of applicable employment by the specialist role of my current position , there's not many of us out there and we're still in great demand , even considering the downturn. Plus even if taxed at punitive rates I still will only have a year or so at max. and may even throw the towel in a year earlier than planned . I've had just about enough of working tbh
so looks that if I sell my uk property after gaining NHR status , gains should be tax free , thats good ; and even if taxed by uk as non resident on gains, I've since discovered my gains will be tax free by following an online calculator on the uk hmrc site for non resident capital gains.
re my qualification , all are at tech. level , but I think I may still be able to be covered by the NHR rule of applicable employment by the specialist role of my current position , there's not many of us out there and we're still in great demand , even considering the downturn. Plus even if taxed at punitive rates I still will only have a year or so at max. and may even throw the towel in a year earlier than planned . I've had just about enough of working tbh
