New NHR benefits

Old Feb 8th 2020, 11:27 pm
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Default New NHR benefits

Does anyone have a link to, or a thread, that explains what the new NHR conditions/benefits will be for 2020?

I heard about the 10% flat tax rate but could only find general articles on the web relating to the proposal - is there any concrete info anywhere?

Thanks!
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Old Feb 9th 2020, 9:56 am
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Default Re: New NHR benefits

Originally Posted by Rorypens View Post
Does anyone have a link to, or a thread, that explains what the new NHR conditions/benefits will be for 2020?

I heard about the 10% flat tax rate but could only find general articles on the web relating to the proposal - is there any concrete info anywhere?

Thanks!
I think you will need to wait until the 2020 Budget is officially published.
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Old Feb 9th 2020, 3:34 pm
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Default Re: New NHR benefits

As mentioned earlier, probably best to wait until legislation is passed. But for me at least, this article looks like good news. My pension is taxed at source (Canada, 15%), so with the dual taxation agreement, the new legislation of 10% will not result in a further tax burden. Fingers crossed.

https://gfdl.legal/amendments-to-the...x-on-pensions/
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Old Feb 10th 2020, 7:25 pm
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Default Re: New NHR benefits

Originally Posted by Vinny17 View Post
As mentioned earlier, probably best to wait until legislation is passed. But for me at least, this article looks like good news. My pension is taxed at source (Canada, 15%), so with the dual taxation agreement, the new legislation of 10% will not result in a further tax burden. Fingers crossed.

https://gfdl.legal/amendments-to-the...x-on-pensions/
Should the Canadian authorities be taxing it at all - have you had a look at the double tax treaty between Portugal and Canada (I have not)?
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Old Feb 11th 2020, 12:42 am
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Default Re: New NHR benefits

Hello Tony - not to get too far in to the weeds here, as my situation is related to Canada taxation, not UK. Probably eyes are glazing over talking about it, but you asked. My pension is a private pension scheme in Canada where contributions are tax deferred, tax payable when withdrawals are taken. I am very familiar with taxation here, have confirmed with tax pros: 15% is the non-resident rate on all periodic payments - i.e. when payments are less than 10% of pension balance per year.

Interesting (at least to me) that if I were to remain in Canada, I would be taxed at 25% on pension, plus forfeit an old age security benefit of ~8%. All tolled the cost of retiring is more than double in Canada versus Portugal, even with proposed NHR changes. It would be less expensive for me to move to the UK than stay in Canada (I am British and Canadian)

I realize tax should not be the only motivator for deciding where to retire - but even when the proposed changes to NHR are considered along with all of the other benefits - weather, golf, people, food, ocean - PT looks pretty good.

Last edited by Vinny17; Feb 11th 2020 at 1:12 am.
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Old Feb 11th 2020, 7:58 am
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Default Re: New NHR benefits

Originally Posted by Vinny17 View Post
Hello Tony - not to get too far in to the weeds here, as my situation is related to Canada taxation, not UK. Probably eyes are glazing over talking about it, but you asked. My pension is a private pension scheme in Canada where contributions are tax deferred, tax payable when withdrawals are taken. I am very familiar with taxation here, have confirmed with tax pros: 15% is the non-resident rate on all periodic payments - i.e. when payments are less than 10% of pension balance per year.

Interesting (at least to me) that if I were to remain in Canada, I would be taxed at 25% on pension, plus forfeit an old age security benefit of ~8%. All tolled the cost of retiring is more than double in Canada versus Portugal, even with proposed NHR changes. It would be less expensive for me to move to the UK than stay in Canada (I am British and Canadian)

I realize tax should not be the only motivator for deciding where to retire - but even when the proposed changes to NHR are considered along with all of the other benefits - weather, golf, people, food, ocean - PT looks pretty good.
I agree completely with your last paragraph. No taxation shouldn't be the only factor in deciding where to live, but it has to be a major factor. Taxation is another cost of living factor and it's a complex equation that has to be given careful consideration, especially when ones working days are over.
I think that tax on income is fine, up to a certain rate, as society has to be paid for, but taxation on worldwide assets is a bit much. I think that countries that wish to attract retiree spending should realise that 10% of something is better than 100% of nothing.
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Old Feb 11th 2020, 8:04 am
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Default Re: New NHR benefits

Originally Posted by R.Scratcher View Post
I think that tax on income is fine, up to a certain rate, as society has to be paid for, but taxation on worldwide assets is a bit much. I think that countries that wish to attract retiree spending should realise that 10% of something is better than 100% of nothing.
Portugal does not levy any tax on assets.
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Old Feb 11th 2020, 5:26 pm
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Default Re: New NHR benefits

Does that mean that if you are a resident of Portugal and sell a house outside of Portugal (by definition a second property) and make a capital gain on it , that it is not taxed as earnings from overseas (worldwide) and added to declared income ?
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Old Feb 11th 2020, 5:29 pm
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Default Re: New NHR benefits

Originally Posted by wellinever View Post
Does that mean that if you are a resident of Portugal and sell a house outside of Portugal (by definition a second property) and make a capital gain on it , that it is not taxed as earnings from overseas (worldwide) and added to declared income ?
If you are on the nhr scheme, and the property is not in a black listed country, then the capital gain will not be taxed, though it is declarable, and it is taken into account to determine taxes due on non exempt income
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Old Feb 11th 2020, 5:31 pm
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Default Re: New NHR benefits

Originally Posted by Red Eric View Post
Portugal does not levy any tax on assets.
There is a capital gains even for taxpayers on the nhr scheme, on financial assets sold. I
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Old Feb 11th 2020, 5:40 pm
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Default Re: New NHR benefits

But defo not property regardless of the amount of the gain?
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Old Feb 11th 2020, 6:33 pm
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Default Re: New NHR benefits

Originally Posted by TonyJ1 View Post
There is a capital gains even for taxpayers on the nhr scheme, on financial assets sold. I


But not on assets held, so there is no tax on assets as such.
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Old Feb 11th 2020, 8:41 pm
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Default Re: New NHR benefits

Immovable property (houses!) sold in the UK are always taxable in the UK, and could have additional tax charged be the country of residence.
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Old Feb 11th 2020, 9:11 pm
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Default Re: New NHR benefits

Originally Posted by Diddion View Post
Immovable property (houses!) sold in the UK are always taxable in the UK, and could have additional tax charged be the country of residence.
That is still not a tax on an asset.

It's not even a tax on the sale of an asset, since only the difference between the value of the asset on purchase and on sale, after allowable deductions and taking inflation into account, ie what is also generally deemed income in many another jurisdiction (probably including the UK although I can't be bothered to check it out to see whether and precisely how it's applied right now), is taxed.
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Old Feb 11th 2020, 9:51 pm
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Default Re: New NHR benefits

I should have included the term ‘gain’ of course.
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