Most punitive taxes, Portugal or Spain
#16
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Re: Most punitive taxes, Portugal or Spain
Withdrawals. from European Compliant investment bonds are taxed in decreasing bands once held for five years, and at a lower rate at 8 years. This is significantly lower than taxation of gains by directly held fund. Have a look at this
#17
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Re: Most punitive taxes, Portugal or Spain
Which has the better tax regime? It depends on how much your income will be.
I compared 5 countries (3 of which would be relevant to your question) in Europe for my own situation and the result was 1) UK - very favorable 2) Spain - a lot more than I want to pay and some complexities (wealth tax, inheritance, etc) 3) Portugal - OK for the 10 years but after that I would have to leave because the tax bill would make a significant dent on my available funds.
I found it very easy to find companies to do the tax calculations for me for 1 and 3. 2 I ended up using an online calculator.
I compared 5 countries (3 of which would be relevant to your question) in Europe for my own situation and the result was 1) UK - very favorable 2) Spain - a lot more than I want to pay and some complexities (wealth tax, inheritance, etc) 3) Portugal - OK for the 10 years but after that I would have to leave because the tax bill would make a significant dent on my available funds.
I found it very easy to find companies to do the tax calculations for me for 1 and 3. 2 I ended up using an online calculator.
#18
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Re: Most punitive taxes, Portugal or Spain
Hi Rorypens,
thanks for your post.
Could I be nosy and ask which country you decided upon?
No doubt the U.K. is very favourable from a taxation point of view but I do not wish to live in a Johnson governed Britain. It seems that the taxation price for living in either Spain or Portugal may be higher than I would be prepared to pay.
thanks for your post.
Could I be nosy and ask which country you decided upon?
No doubt the U.K. is very favourable from a taxation point of view but I do not wish to live in a Johnson governed Britain. It seems that the taxation price for living in either Spain or Portugal may be higher than I would be prepared to pay.
#19
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Re: Most punitive taxes, Portugal or Spain
Sure. Portugal for 10 years was a clear winner for me (after the 10 years I will have to move). Spain's property prices were nearly a deciding factor though (but they are rising fast) and being in Portugal makes its easy to spend time in Spain as well.
#20
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Re: Most punitive taxes, Portugal or Spain
Would it be more accurate to say that the uk is more tax favourable IF paying the full tax (no schemes/offers etc)..... after all, I know lots of people commuting from other countries inc spain/Portugal whilst still working in the uk just to benefit Tax wise.
#21
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Re: Most punitive taxes, Portugal or Spain
Slightly better news on that now Shanorme.The reservoirs in the North were up to 98% before this last bout of rain. The ones in the Algarve were at about 58%,again before this last heavy rain. Its the one(s) on the eastern border with Spain that are still causing concern.
That might be another area to look in for our poster. Make sure you choose an area with water
That might be another area to look in for our poster. Make sure you choose an area with water
#22
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Re: Most punitive taxes, Portugal or Spain
I cannot think of any food items that are cheaper in Portugal than the UK
#23
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Re: Most punitive taxes, Portugal or Spain
Some food prices are the same, some are more but fresh fruit and veg is much cheaper in Portugal than the UK. I can pay a fraction of the cost for a supermarket trolleyful in PT that I would pay in the UK. I don't go to Spain that often and my general impression was that eating out costs the same as Portugal or more and that supermarket prices were higher in Spain but I recently spoke to a Norwegian who moved from Spain to Portugal (mainly to get NHR) but the Norwegians have blocked NHR and she now plans to move back to Spain where she claimed the cost of living was much cheaper. She currently lives in the Algarve and I can't remember where she said she lived in Spain but it wasn't one of the large cities.
#24
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Re: Most punitive taxes, Portugal or Spain
And Portugal also comes out cheaper than Spain: Cost of Living: Portugal vs Spain
#25
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Re: Most punitive taxes, Portugal or Spain
Where one does ones food shopping is a matter of personal choice, and you are free to shop around for the best prices. Taxation, though, is a different matter. Once you have tax residency in a certain country you are not free to shop around, you have to pay the "price" demanded.
My original question was, which has the most punitive taxes, Portugal or Spain? It seems to be a given that if you have an income and savings the U.K. wants less of it in taxation than Portugal or Spain. From answers given I am of the thought that, unless one has NHR status, Portugal taxation is more punitive that Spain. Agreed? That leaves me thinking. Rent or buy in Portugal and how much longer will the NHR scheme be available.
My original question was, which has the most punitive taxes, Portugal or Spain? It seems to be a given that if you have an income and savings the U.K. wants less of it in taxation than Portugal or Spain. From answers given I am of the thought that, unless one has NHR status, Portugal taxation is more punitive that Spain. Agreed? That leaves me thinking. Rent or buy in Portugal and how much longer will the NHR scheme be available.
#26
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Re: Most punitive taxes, Portugal or Spain
My opinion only
I would rent at the moment, house price increases over the last 2 years will slow and stop during this year in Portugal.
Of course rents are also high due to high house prices
The market is over valued now, esp apartments. (Algarve), so possibly slow reduction in prices next year
Sterling might improve against the Euro as the developes, unlikely to go down.
Lots of uncertainty of course, but thats what I would do. Only remain for less than 183 days in a full year, to make sure you dont become a Portuguese Tax resident.
I would rent at the moment, house price increases over the last 2 years will slow and stop during this year in Portugal.
Of course rents are also high due to high house prices
The market is over valued now, esp apartments. (Algarve), so possibly slow reduction in prices next year
Sterling might improve against the Euro as the developes, unlikely to go down.
Lots of uncertainty of course, but thats what I would do. Only remain for less than 183 days in a full year, to make sure you dont become a Portuguese Tax resident.
#27
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Re: Most punitive taxes, Portugal or Spain
Where one does ones food shopping is a matter of personal choice, and you are free to shop around for the best prices. Taxation, though, is a different matter. Once you have tax residency in a certain country you are not free to shop around, you have to pay the "price" demanded.
My original question was, which has the most punitive taxes, Portugal or Spain? It seems to be a given that if you have an income and savings the U.K. wants less of it in taxation than Portugal or Spain. From answers given I am of the thought that, unless one has NHR status, Portugal taxation is more punitive that Spain. Agreed? That leaves me thinking. Rent or buy in Portugal and how much longer will the NHR scheme be available.
My original question was, which has the most punitive taxes, Portugal or Spain? It seems to be a given that if you have an income and savings the U.K. wants less of it in taxation than Portugal or Spain. From answers given I am of the thought that, unless one has NHR status, Portugal taxation is more punitive that Spain. Agreed? That leaves me thinking. Rent or buy in Portugal and how much longer will the NHR scheme be available.
#28
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Re: Most punitive taxes, Portugal or Spain
Most things! Cost of living Portugal vs UK
And Portugal also comes out cheaper than Spain: Cost of Living: Portugal vs Spain
And Portugal also comes out cheaper than Spain: Cost of Living: Portugal vs Spain
Of course this does not take into account the difference in wages in the UK......x2.5 higher in UK
#29
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Re: Most punitive taxes, Portugal or Spain
Although one would also need to consider whether it is worth obtaining residency this year, in order to (I think!) secure NHR at current rates rather than the new 10% rates on pension income.
#30
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Re: Most punitive taxes, Portugal or Spain
In my own experience those figures are way off. I would disagree with almost every aspect on that site regarding food. I live in UK for a good part of the year and buy produce from general supermarkets in both Portugal and UK. Last time I came back to Portugal I even bought Garlic from UK as it was so much cheaper n UK.