Moving pensions to Portugal
Sep 6th 2012, 1:26 am
#16
Forum Regular
Joined: Nov 2011
Posts: 96
Re: Moving pensions to Portugal
The most basic concept in Portuguese tax law reads: Portugal taxes residents on WORLDWIDE income. There are no exceptions, and there's certainly NO choice.
To prevent double taxation, a foreign resident declares all income to Portugal, and then takes a credit on any taxes owed to their home of origin.
I recommend anyone research if there are any exceptions to the known provision of Portugal taxing on worldwide income. Our research showed none.
To prevent double taxation, a foreign resident declares all income to Portugal, and then takes a credit on any taxes owed to their home of origin.
I recommend anyone research if there are any exceptions to the known provision of Portugal taxing on worldwide income. Our research showed none.
Sep 6th 2012, 1:49 am
#17
Senior Moment
Joined: Jan 2006
Location: On the edge
Posts: 20,460
Re: Moving pensions to Portugal
The most basic concept in Portuguese tax law reads: Portugal taxes residents on WORLDWIDE income. There are no exceptions, and there's certainly NO choice.
To prevent double taxation, a foreign resident declares all income to Portugal, and then takes a credit on any taxes owed to their home of origin.
I recommend anyone research if there are any exceptions to the known provision of Portugal taxing on worldwide income. Our research showed none.
To prevent double taxation, a foreign resident declares all income to Portugal, and then takes a credit on any taxes owed to their home of origin.
I recommend anyone research if there are any exceptions to the known provision of Portugal taxing on worldwide income. Our research showed none.
Sep 17th 2012, 8:02 am
#18
BE Enthusiast
Joined: Jun 2007
Location: Tavira
Posts: 749
Re: Moving pensions to Portugal
I'm not sure we have the information to make proper comment.
If you are buying a house abroad as a holiday home, then the matter doesn't really come into it.
However, unless Portugal is different to most of the rest of the EU, if you move to Portugal and live there, you become a Portugese tax resident and your state pension should be declared in Portugal. Government pensions are taxed at source in the UK.
For instance in Spain, we have a state and government pension, and using the above formula we pay no tax on either of them as we take advantage of both tax allowances
Please tell me Chopper if Portugals tax regime is different to the rest of europe, as generally you are required to pay tax in the country of (tax) residence
If you are buying a house abroad as a holiday home, then the matter doesn't really come into it.
However, unless Portugal is different to most of the rest of the EU, if you move to Portugal and live there, you become a Portugese tax resident and your state pension should be declared in Portugal. Government pensions are taxed at source in the UK.
For instance in Spain, we have a state and government pension, and using the above formula we pay no tax on either of them as we take advantage of both tax allowances
Please tell me Chopper if Portugals tax regime is different to the rest of europe, as generally you are required to pay tax in the country of (tax) residence
