factseeker

Hi All,

My wife and I are considering a visit to Portugal shortly with the intention of possibly purchasing a property for retirement.

We are both British citizens.

Putting all the Brexit stuff to one side I do still have some considerable concern.

Pensions in UK are taxed at 20% over and above a Tax Free level of first £11,850 and then at 40% from £34,501 upwards etc.

From Web research it appears that Taxation in Portugal starts at 14.5% on the first €7,091 etc? - and then escalates upwards considerably to 28.5% then 37%.

Is this correct?

If for any reason NHR was not forthcoming then it would be local taxation - I calculate that might well incur a level at possibly double that in UK.

If NHR is not granted until after a property is purchased - it might just be possible to find oneself somewhat stranded owning a property in Portugal but with considerably higher taxation levels than one might currently experience.

I would be interested in and grateful for any comments.

Best Rgds & Hoping to hear.
Factseeker

qianh

Red Eric

No, it's a little better than that.

The scales you're quoting have been revised and a couple of additional steps added :


And pension income benefits from a deduction of €4,104 prior to the calculation.

Then you've also got a range of possible deductions from the result of that, at least €250 of which is nailed on (that's just for "general expenditure" on around €750 worth of purchases on which you quote your tax number).

Other than that, I'm with qianh on the why wouldn't you qualify?

offthepiste

Hi Factseeker,

I am mid process regarding Residency and NHR.

If you are a EU citizen, as UK citizens currently are, then you can get your NHR without having to purchase a property. Not sure what will happen after 29th March though.

I have so far obtained my "Civil" Residency. For this you need to have a NIF (mine has my UK address on it) and a permanent address in Portugal (I have a long term rental not a purchased property). I went to a local office with my Portuguese lawyer and got my Residence Certificate (A4 embossed sheet of paper) in 10 minutes for €15. I wanted to do this well before 29th March.

I will shortly apply for my Tax Residency and my NHR, again aided by my (fantastic) lawyer. My idea is to do this close to April 5 as possible, though I may be considered tax resident in Portugal in effect from 1st January, when their tax year starts. That is, there will be overlap with UK. So I may have some fun here at some time!!!

You may have seen a post that I did entitled Tax / NHR and UK Private Contribution Pension (I guess I should have called it Personal Contribution Pension?). You might find it useful / thought provoking!

Good luck

factseeker

Hi offthepiste,

Firstly my thnxs to all for replies - they are 'comforting.
Wife and I arrive on 8th March and have a list of properties to check out - thnxs to Internet half way around the world.
I will let all know how it works out - but figure we have enough time to get 'under the bar'.

Reason for apparent doubt ref obtaining NHR - well long story but an experience from many many years ago taught me rightly or wrongly to check and double check?
From a lot of luck and 'inhuman' hard work I had built quite a decent sized IT Company from 'scratch' over a 10 year period - being still very busy I then trusted the word of 'advisors' when the time came to sell.

The 'advice' cost me a 'life changing' amount and since that time I tend to 'do it myself'.

Whatever - my thnxs to all for time on comments.
Best Rgds.