borisface

I am going to need to apply for residence in PT and am looking at the NHR scheme. One thing that I am unsure about is whether I will qualify. I meet the residence requirements but the only income that I have comes from rental income in the UK. I don't yet draw a pension and won't for a few years yet. The guidance on the financias website seems to indicate that you need to be engaged in one of the high value added activities to qualify under the scheme, is my reading correct? Has anyone in my situation have any direct experience of applying and whether they were successful?
From the finanacias guidance, my italics
The Investment Tax Code, created by Decree-Law n. 249/2009, approved on September 23rd, implemented a Personal Income tax system for the non-regular resident, with the purpose of attracting to Portugal non resident professionals qualified for activities with high added value intellectual or industrial propriety or knowhow, as well as beneficiaries of pension schemes granted abroad.

Strangely enough I feel that my previous employment would qualify under the scheme, although I am not going to be practicing, and I could exercise an option to receive my pension early, although I would rather wait as it will be higher then.

dingg

the trouble is if you become resident and don't apply for nhr within the first tax year that opportunity is then gone , be careful of missing out.

there was rumour of an introduction of a 5 or 10% tax rate for pensioners under nhr but that appears to have been only a rumour so far. who knows what next year brings.

you will be likely to get nhr even if you do not take a pension yet but will do in the future.

you do not need to be in one of the accepted professions to be accepted under nhr.

Ukkram

Rental income may be taxed by the country on which the property is situated. So if the UK taxes you on the rental income then with NHR no further tax will be payable to Portugal.
If the UK does not tax you then the whole amount is tax free for 10 years. Now you have another question........Will the UK tax me on this if I become a non resident of the UK?

wellinever

I think the answer might be that as far as I know, if you rent out a property in the UK through an agency, that they are duty bound to inform the Inland revenue if your address (main residency) is not in the UK.
That would suggest that tax avoidance would be difficult.

borisface

Yes the UK will tax me on the rental income that's not a problem. And I understand that under NHR Portugal won't tax me again. But the question I had was would I still qualify for NHR if I don't pursue one of the high value added occupations nor am in receipt of a pension? Although I am a beneficiary of a pension and could claim it but prefer not to yet.

Ukkram

I get exemption for interest on investments and it is not a "high value added occupation". Even my foreign bank interest is exempt in both countries.

DiDAN

There's not requirement for NHR to pursue one of the high value added occupations. These occupation's list is only applicable to pay lower 20% rate on income received in Portugal.
Anyone who was not Tax Resident at least 5 years in Portugal can apply for NHR and it will be highly likely granted.