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-   -   NHR access to state healthcare and schooling (https://britishexpats.com/forum/portugal-89/nhr-access-state-healthcare-schooling-928053/)

BobSmith888 Sep 22nd 2019 7:36 pm

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?

qianh Sep 22nd 2019 8:19 pm

Re: NHR access to state healthcare and schooling
 
Simple answer is no. NHR is not tax free

k2397 Sep 22nd 2019 8:25 pm

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.

dingg Sep 22nd 2019 8:43 pm

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

BobSmith888 Sep 23rd 2019 7:30 am

Re: NHR access to state healthcare and schooling
 

Originally Posted by qianh (Post 12738392)
Simple answer is no. NHR is not tax free

why do you say “not tax free”?

all foreign sourced income of an NHR is supposed to be tax free under NHR scheme right?

BobSmith888 Sep 23rd 2019 7:35 am

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.

Thanks.Thats great to hear.

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?





BobSmith888 Sep 23rd 2019 7:42 am

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

thanks for the feedback.

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?

qianh Sep 23rd 2019 10:50 am

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?

NHR is not blankly “no income tax”, and I read from people’s experiences here some foreign sourced income has been taxed. There is a pdf on finanças website. Technically it’s “double taxation exemption” . Of course it’s very vague and open to interpretations.

qianh Sep 23rd 2019 10:54 am

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

Red Eric Sep 23rd 2019 11:06 am

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

Without wishing to deviate too much from the thread topic :), yes you are correct that state healthcare is residence-based, which means that ultimately whatever happens Brexit-wise won't affect the service received or costs paid by UK citizens already resident here.

dingg Sep 23rd 2019 3:21 pm

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

Lou71 Sep 23rd 2019 10:09 pm

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.

qianh Sep 24th 2019 6:03 am

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!

Red Eric Sep 24th 2019 6:40 am

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.

As far as I'm aware, it's only capital gains on the disposal of foreign property which are exempt from PT CGT under NHR. The sale of a Portuguese property would be subject to CGT.

I'll happily stand corrected if anybody can provide solid evidence to the contrary, though :)

Red Eric Sep 24th 2019 6:41 am

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!

The first post doesn't convey any attitude at all on my reading - it simply asks for confirmation of the facts :

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?

Nobody who benefits from NHR is doing anything underhand or gaining anything at all that isn't entirely intended by the Portuguese authorities. Everybody who lives in Portugal is entitled to the same access to healthcare, education etc as everybody else, regardless of how much income tax they pay.


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