NHR access to state healthcare and schooling
Hello all, I am now considering early retirement in Portugal and taking advantage of the attractive NHR scheme. Am I correct that a person(+ spouse and school age dependent children) who has NHR status and doesn't pay any income taxes in Portugal has a right for their family to access the free state healthcare system and free school system just like any other Portugal resident? |
Re: NHR access to state healthcare and schooling
Simple answer is no. NHR is not tax free |
Re: NHR access to state healthcare and schooling
If you become resident in Portugal, you will have access to the Portuguese health service and state schooling. This is unrelated to the NHR scheme which may, if you qualify, exempt some types of income from Portuguese taxation for a 10 year period.
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Re: NHR access to state healthcare and schooling
In your circumstances, you may be entitled to tax free status, it depends on your personal pension and some are allowed to be solely taxed by Portugal, if that's the case you will be legible for tax free drawdown for 10 yrs under nhr scheme your family once resident get the same access to schooling and health system as a Portuguese citizen.
Good luck |
Re: NHR access to state healthcare and schooling
Originally Posted by qianh
(Post 12738392)
Simple answer is no. NHR is not tax free all foreign sourced income of an NHR is supposed to be tax free under NHR scheme right? |
Re: NHR access to state healthcare and schooling
Originally Posted by k2397
(Post 12738396)
If you become resident in Portugal, you will have access to the Portuguese health service and state schooling. This is unrelated to the NHR scheme which may, if you qualify, exempt some types of income from Portuguese taxation for a 10 year period.
Living in a western european country tax free for ten years, free healthcare and free education for the kids. Actually it still seems far too good to be true. Am i missing a big downside catch? |
Re: NHR access to state healthcare and schooling
Originally Posted by dingg
(Post 12738405)
In your circumstances, you may be entitled to tax free status, it depends on your personal pension and some are allowed to be solely taxed by Portugal, if that's the case you will be legible for tax free drawdown for 10 yrs under nhr scheme your family once resident get the same access to schooling and health system as a Portuguese citizen.
Good luck I don't have a pension. All my income comes from unit trust investments that are domiciled in Luxemburg and singapore. Both Luxemburg and Singapore do not tax non-residents of lux who earn investment income in Luxemburg and Singapore. As such, would you agree that there would be no tax in portugal under the NHR scheme as well? |
Re: NHR access to state healthcare and schooling
Originally Posted by BobSmith888
(Post 12738524)
why do you say “not tax free”? all foreign sourced income of an NHR is supposed to be tax free under NHR scheme right? |
Re: NHR access to state healthcare and schooling
On the note of health care, I am wondering if people retired here are using S1 form and is it going to be continued after no deal Brexit? How about retirees from non EU countries, do they need private health insurance. I am always under impression that in Portugal state health care is residence based. But I read somewhere UK government signalled UK will only fulfil certain period of S1 obligations in the event of no deal. A bit confused now |
Re: NHR access to state healthcare and schooling
Originally Posted by qianh
(Post 12738608)
On the note of health care, I am wondering if people retired here are using S1 form and is it going to be continued after no deal Brexit? How about retirees from non EU countries, do they need private health insurance. I am always under impression that in Portugal state health care is residence based. But I read somewhere UK government signalled UK will only fulfil certain period of S1 obligations in the event of no deal. A bit confused now |
Re: NHR access to state healthcare and schooling
re your circumstances , you will need to read and digest the tax agreements between pt/lux and pt/singapore to be sure what will happen under nhr , maybe ask a specialist in this regard
good luck |
Re: NHR access to state healthcare and schooling
We took advice on NHR and broadly speaking, it means that income derived from outside Portugal is not taxed by Portugal. Income derived from within Portugal would be taxed by Portugal, even if you are a NHResident.
In certain cases income derived from outside Portugal would be taxed by the country where the income is generated, in line with the laws of that country, i.e. property rental income from the UK would be taxable in the UK but not in PT. If you have qualified for NHR and are paying no tax in PT and then for example either take a job in PT or rent out your house in PT, that income is taxable in PT. It is also worth noting that if you pay no tax in PT under the NHR scheme you are entitled to PT state healthcare free of charge but if you start to receive income taxable in PT you are also at that point obliged to pay social security in PT. If you sell your house within the 10 year NHR period you do not pay PT capital gains tax, if you sell it after the 10 year period, you pay capital gains tax according to the usual rules and exemptions. |
Re: NHR access to state healthcare and schooling
I am sorry I just can’t really agree the blunt attitude of the original post, op doesn’t want to pay any tax yet want to use the free health and school system which is paid by locals who earn low salary and pay high tax! |
Re: NHR access to state healthcare and schooling
Originally Posted by Lou71
(Post 12739023)
If you sell your house within the 10 year NHR period you do not pay PT capital gains tax, if you sell it after the 10 year period, you pay capital gains tax according to the usual rules and exemptions.
I'll happily stand corrected if anybody can provide solid evidence to the contrary, though :) |
Re: NHR access to state healthcare and schooling
Originally Posted by qianh
(Post 12739138)
I am sorry I just can’t really agree the blunt attitude of the original post, op doesn’t want to pay any tax yet want to use the free health and school system which is paid by locals who earn low salary and pay high tax!
Originally Posted by BobSmith888
(Post 12738384)
Hello all, I am now considering early retirement in Portugal and taking advantage of the attractive NHR scheme. Am I correct that a person(+ spouse and school age dependent children) who has NHR status and doesn't pay any income taxes in Portugal has a right for their family to access the free state healthcare system and free school system just like any other Portugal resident? |
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