curried beans

Reading all the posts here about NHR tax, my confusion is about what exactly are the tax benefits under the 10 year NHR to someone from UK becoming resident in PT by December 2020. According to the webpage of a well known expat advisor
"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 most UK rental income, capital gains on real estate, interest, dividends and non-Portuguese employment income tax-free.
This can apply even if the income is not actually taxed in the home country. For example, UK dividends (excluding gains on UK shares) escape Portuguese taxation under NHR because they are taxable in Britain under the UK/Portugal double tax treaty. In practice, however, the UK’s ‘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 UK dividend income. "
So according to the above, the tax position might be on a set of hypothetical numbers below
Pension: UK State + annuity 12000 euros at 10% = 1200 liability in PT
UK Dividend income: 30000 euros = no tax liability in PT or UK if it is considered disregarded income by HRMC.
Am I being naive and getting this completely wrong?
I will take professional advice in due course, but would be interested if someone would be kind enought to offer a "view" in the meantime.
Thank you

Red Eric

Hi, and welcome to the forum from me

Yes, that looks right to me, at least in principle.

The only note of caution I can think of is as to whether the dividend income is accepted as such. Apparently there are cases in which what is described as dividends doesn't conform to the OEDC Model Tax Convention on Income and Capital, taking into account the observations and reservations expressed by Portugal.

curried beans

Thank you Red Eric for the welcome. And your comment is very helpful because it has prompted me to google
"which dividends conform to OEDC Model Tax Convention on Income and Capital" and it looks like I have some PDFs to download.
I am interested in knowing about dividends from an unlisted company of which I am not a director and were treated as disregarded income by HMRC when I was
previously non resident in the UK for tax.
In due course, if I have any further information, I'll happily pass it on subject to a "wealth warning"

TonyJ1

Though in theory foreign salaries could be tax free under the nhr rules, the way the legislation works, this is a virtual benefit - never seen a practical instance where it would work.

There are special rules for the taxation of annuities - essentially only 15% of an annuity is subject to tax in Portugal - this has nothing to do with the nhr rules - of course subject to proof (if required)

curried beans

I'm retired. It's not one of those getting dividend in lieu of salary situations. I think that's what you are inferring.... or?

TonyJ1

There are special rules for annuities - nothing to do with nhr