m2m2012

riv, I'm guessing your NIF address is a foreign address, correct? You need to keep that address foreign otherwise you will be regarded as a tax resident...this was discussed in a recent thread with 3 people confirming that is what happens in practice regardless of what the published rules say about tax residency. Having said that; be careful...because the published rules say you can be considered a tax resident even if you don't spend 183 days if you take actions that suggest you have made your permanent residence in Portugal. You have a house already; if you get a Portugal car the tax-man could argue you definitely are a tax resident.

GrahamF

There are the rules and then what happens in practice. My wife and I are both in our 70s, have property and cars and pay taxes on both but no income or bank interest here to pay tax on, that's done in UK where we're also resident and there's a double taxation agreement. Some years ago when we were updating property records at Finances, we queried our position and were told not to bother submitting returns if no income. Those who have formally left the UK and immigrated are more likely to have problems.

m2m2012

Just to be clear; my comments/question above was aimed at riv, the thread starter.

m2m2012

I don't think riv is a tax resident.

In most of the EU, but not all, foreigners cannot register a car (ie. get permanent number plates) in their name unless they are a resident. Buying a car, and registering a car are two different things. Of course transit number plates to take the car back to their home country a foreigner can get.

"You should obtain your car's permanent number plate in the country where you register your car, which is usually the country where you live or have your permanent residence."

from
https://europa.eu/youreurope/citizen...d/index_en.htm

GrahamF

I was offering an alternative viewpoint about the tax situation here. Your post says - You have a house already; if you get a Portugal car the tax-man could argue you definitely are a tax resident.

Although not impossible, I would consider this from our experience and friends in similar position, unlikely.

m2m2012

Be careful ! Buying a car in Spain and getting permanent number plates can make you a tax resident:

Non resident but own a Spanish reg car? Take care and check your tax situation… – Cervantes Alarcon Consulting

Spanish taxmen are like the Taliban; they show no mercy.

Spain used to have special tourist number plates for cars and boats; but no more.

Permanent number plates to non-residents is not the norm in Europe.

m2m2012

I agree it's unlikely; for now. In other countries, such as next door Spain, you'd have some explaining to do.

GrahamF

From what I've heard, I don't like the Spanish rules. One point I've pondered is - when we're quoting personal experiences, most of those experiences have been gained as European Citizens but, most of us no longer are so, taking this thread for instance - if a third country citizen without residence wants to have a car here, has the situation changed since he/she became non-European?

m2m2012

Good question. My guess is that there is no difference. A French tourist and a Russian tourist are both non-residents of Portugal.

Note though, an EU citizen who is a resident of the EU, cannot drive a non-EU plated car inside the EU; this includes rental cars. Eg. someone from Portugal on holidays cannot rent a car in Geneva (Switzerland is non-EU) then use it to enter say France or Germany. In July of 2015, the EU introduced legislation pertaining to people who drive foreign cars from outside the 28-nation bloc into the EU. The law states that such vehicles must be taxed unless they are being used for work purposes, the driver is directly returning to his or her home within the Union or is in the process of leaving the Union.

riv

In case anyone is worried ( or it affects the advice proferred ) my situation is specifically that of a non resident of Portugal, neither tax nor any other aspect :

I have owned the current house, [ East Algarve ] and before it, a flat, since 2012 [ good GRIEF ! almost a decade ! ] , but always as a non resident. I do indeed spend over six months of the year in the UK, and of course pay taxes etc. there, and keep a car there ( which sometimes comes to and from Portugal on a transporter ).

It is the expense and faffing around of the latter ( transporting a car back to England just to get its MOT and then come back is a bit mad, financially ) which has prompted my thoughts of obtaining a Portuguese plated car and keeping it here in my tiny quintal, year round. The options appear to me to be putting on Portuguese plates my existing Clio ( value in UK less than three grand, approx cost to plate in Portugal apparently seven or so grand BUT the point being it is in excellent mechanical condition, auto, leather trim and so on - the 'Initiale' model ) IF I could find an Age^ncia to do it for me.

OR, buying a new ( for the guarantee ) cheapo Dacia. I have never owned a new car in my life, having always preferred to buy cheapo and ensure good breakdown insurance. But I don't know any way of being confident in a car's mechanics other than buying new ( or keeping the Clio ) , and the Dacia Stepway auto and / or Duster ( new, auto available this year ) seem incredible value for money.

Yes, maybe hiring a car for two or three months at a time locally would be better value, but I like the idea of having a car I am used to available without notice. And I like autos now.

TonyJ1

The important point, is that a foreigner may own a car in Portugal even if he is not a permanent resident. It is important to make sure that the address at the tax office, reflects a foreign address, otherwise the tax authority could request tax returns on the basis of the registration (ie if the address is a Portuguese address, basically advising the tax authority that he/she is a tax resident - even if not 'legal' for residence purposes which is another bureaucracy). This can be overcome in some instances - though harder to prove a negative. Many non residents who do own properties in Portugal, do keep Portuguese plated cars (also boats) in Portugal without any issues. Foreign plated cars are not allowed to remain in Portuguese territory for more than 6 months (without the process for legalisation being started). For UK residents, important to make sure that the tax address is the UK and in that case a fiscal representative is likely to be required (to receive notices, fines, etc)

You should obtain your car's permanent number plate in the country where you register your car, which is usually the country where you live or have your permanent residence."
Though this is the usual rule, the operating word is usually - this is really intended for the cases where people live in one country and work in a neighbouring country - so called cross border workers - in these cases, any vehicle should be registered in the home country rather than in the country where the worker works

TonyJ1

If you import a foreign vehicle, you would likely have to pay some import duties and VAT (if from the UK). You can only import a vehicle tax free if you are changing residence - ie formerly an immigrant

m2m2012

If you buy and register a car in Portugal what will be your address on the car's paperwork? Can you put a UK address? If no, that's what I don't like about this plan being that you are a non tax resident...you need to be sure you don't set off any trip wires (see my link above about this situation in Spain).

Dacia guarantee is awful...buy a KIA or Hyundai and get 7 years.

m2m2012

So you buy your Dacia and the car's registration papers show your Portugal house address and you use a UK driver's license. Police pull you over and ask for your paperwork. The police ask you "what is the address?" and you say "it is my house". You are perhaps going to have some explaining to do as to why you own a house and a car in Portugal but don't have a local driver's license and hope they're willing to listen rather than just issue you a fine.

Moses2013

Totally agree and anybody can buy a car in a country but needs to be aware of the implications. Even if you get insurance it doesn't mean you are actually covered and depending on your driving licence, you might be a non resident but the car is registered in Portugal, so would be obliged to exchange. The advice in any EU country: You first need to check your tax-payer status with the Tax Authority. If you are registered as a tax-payer then you should submit proof of being a tax-paying resident of another country and request your removal from the active list.

You will need a certificate of non-residency, which also serves as proof that you are not obliged to exchange your driving licence.