Re: NHR status portugal
no as long as its in the pension wrapper its free of tax under NHR (IMO)
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Re: NHR status portugal
Hi all,
I'm looking for some high level pearls of wisdom with respect to the tax implications of a potential move to Portugal and NHR (I will take proper advice so this is just a toe dipping exercise):
Tks in advance. |
Re: NHR status portugal
Originally Posted by wfo123
(Post 12567277)
Hi all,
I'm looking for some high level pearls of wisdom with respect to the tax implications of a potential move to Portugal and NHR (I will take proper advice so this is just a toe dipping exercise):
Tks in advance. I am in the same sort of situation as you - and am looking at Portugal, Cyprus and Spain. (from my current findings reading left to right is advantageous in tax, reading right to left is lower property costs) |
Re: NHR status portugal
There are many websites that spew wrong information to entice you to buy property through them. I have high regard for Blevens Franks as so far they have been spot on with the obscure NHR rules. AFPOP, the expat group that provides information and support to expats in PT works with them and highly recommends them.
This is what BF has to say about your query. Under NHR, most income from a foreign source is exempt from Portuguese taxation for ten consecutive years, as is income that is taxable in another country. This means that British expatriates can potentially receive UK pensions, rental income, capital gains on real estate, interest, dividends and non-Portuguese employment income tax-free. Importantly, this can apply even if the income is not actually taxed in the home country. UK dividends, for example, escape Portuguese taxation under the NHR scheme because they are taxable in Britain (according to the UK/Portugal double tax treaty). In practice, however, ‘disregarded income’ rules can eliminate UK tax liability for non-residents. As a result, you could end up paying no tax – in either country – on the income (although gains on UK shares will not qualify for NHR exemption). |
Re: NHR status portugal
Thanks Ukkram. We don't mind paying tax of course and mainly interested in not being in a worse position than if we stayed put in the UK. I will also ask on the general board about the high level tax implications of moving to other countries (Spain / Italy / France - ideally not too far from the UK).
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Re: NHR status portugal
I called up Blevins Franks and bought four of their books on France, Spain, Portugal and Cyprus. They aren’t too bad for a good introduction |
Re: NHR status portugal
Thanks uk03878 - I'll follow up with them.
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Re: NHR status portugal
Originally Posted by wfo123
(Post 12567377)
Thanks Ukkram. We don't mind paying tax of course and mainly interested in not being in a worse position than if we stayed put in the UK. I will also ask on the general board about the high level tax implications of moving to other countries (Spain / Italy / France - ideally not too far from the UK).
For me, it was getting so tough to make a decision as to what to go for that I compiled a spreadsheet with nine items (incl weather, healthcare and tax) to subjectively weigh between each residence choice and weighted them in order of importance in terms of our overall lifestyle and costs. Portugal won easily. So I have been able to decide that if the costs of getting to and maintaining NHR is reasonable, NHR is worth it. We are pensioners so NHR is more obvious as a benefit because our UK tax allowances would pretty-much cancel any UK taxable income. Pensions from anywhere are likely to be tax-free in Portugal and as far as we can see, no other tax domicile in Southern Europe offers that much while giving easy access to the UK. We briefly looked at Malta, but not of late. You could possibly also look at Montenegro though where access to the UK is now much better. One important thing was that I had to be satisfied that the healthcare provision in Portugal was sufficient that I didn't have to look over my shoulder at the potential for having to return to the UK for something major which would negate my departure for CGT purposes under the temporary non-residence rules (you must be out for five full tax years). |
Re: NHR status portugal
The NHR topic has become the topic of the month even though it has been in place for some years. However, I find it strange that apart from myself, not a single member has yet shared their tax experience under NHR.
Would it not be great if we can list for ourselves what is exempt and what not as website info conflicts on this. It is as if it is a secret topic or perhaps embarrassing. All we have that is firsthand so far is that CGT on the sale of securities are not exempt. (My contribution) |
Re: NHR status portugal
Good post ukkram
lets hope people respond with their experiences |
Re: NHR status portugal
Originally Posted by dingg
(Post 12568068)
Good post ukkram
lets hope people respond with their experiences We have just applied through the tax portal, with help, and it now shows us as excepted on the NHR scheme (as mentioned in another NHR thread) But we are just pensioners, with a company pension each, so it's straightforward for us. The only thing I'm not sure of is if our NS&I premium bond winnings will be taxed. I will hopefully find out when we file our first tax return in the Spring. I suspect that they will be. |
Re: NHR status portugal
I have no problem sharing advice I have paid for if it helps my fellow forum members but unfortunately many will not because of the cost to them so will not share.
This is sad as so many posters have openly stated that they got their info from paid advisers and even stating names of the companies they dealt with but so far nothing is shared. I'm cool with that but don't throw Co names if you have not dealt with them and not shared. |
Re: NHR status portugal
Alicecaroline , below is from nsi website , so premium bond holdings do not get reported to hmrc , that means portugal authority has no knowledge of any amount of premium bonds you hold . May be worth investigating further re the tax situationWe will report the following information to HM Revenue & Customs about individual financial account holders and controlling persons: |
Re: NHR status portugal
I'm a real by the book person.
If I'm meant to pay tax on them I will, the fact that I could get away without because they wouldn't know they exist doesn't sit well with me. So I will try and find out what the tax laws say. Not saying I don't like getting out of paying tax legally - I have signed up for NHR after all. It won't be a lot anyway, I just have the bonds to keep some savings in Sterling. |
Re: NHR status portugal
I agree
let us know what you find out the official tax status would be re any winnings , its handy to know for future |
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