New NHR benefits
#1
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Joined: Jul 2019
Posts: 42
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!
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!
#2
Re: New NHR benefits
I think you will need to wait until the 2020 Budget is officially published.
#3
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Joined: Jul 2017
Location: Toronto
Posts: 48
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/
https://gfdl.legal/amendments-to-the...x-on-pensions/
#4
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Joined: Mar 2014
Posts: 414
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/
https://gfdl.legal/amendments-to-the...x-on-pensions/
#5
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Joined: Jul 2017
Location: Toronto
Posts: 48
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.
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 12:12 am.
#6
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Joined: Dec 2019
Posts: 25
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.
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 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.
#8
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Joined: Mar 2008
Posts: 1,705
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 ?
#9
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Joined: Mar 2014
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Re: New NHR benefits
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
#11
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Re: New NHR benefits
But defo not property regardless of the amount of the gain?
#13
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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.
#14
Re: New NHR benefits
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.
#15
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Re: New NHR benefits
I should have included the term ‘gain’ of course.