Non Habitual Resident Regime
 

Is anybody clued up on this I'd appreciate some advice? All I know is that it ends today,
After that, if I read it correctly 10% tax will be imposed on pensions of non residents.

Re: Non Habitual Resident Regime
 

When did you become resident in Portugal?

Re: Non Habitual Resident Regime
 

I am not resident yet.

Re: Non Habitual Resident Regime
 

If you're not yet resident you will only be able to apply in the future for the less appealing rates that are now taking effect.

The deadline for application for the scheme is 31 March of the year following the year in which you become resident and you cannot apply until you are properly registered as a resident.

You have plenty of time to research the scheme.

Re: Non Habitual Resident Regime
 

Thanks for your input. What confuses me is that I receive a State Pension in the UK paid into
my UK bank and I draw what I need as I go. In essence that income falls under the domain of the UK Revenue system. In Portugal I do not derive any income, or receive any pensions.

Re: Non Habitual Resident Regime
 

It will be considered taxable in the UK until you declare that you are resident elsewhere. It is usually taxed by your country of residence.

Re: Non Habitual Resident Regime
 

If you are living as a registered resident in Portugal it does not matter that you receive it in the UK . You complete a Double taxation Agreement form for the Inland Revenue and you can receive it tax free in the Uk and declare under NHR here.

Re: Non Habitual Resident Regime
 

Thanks for your help.
Just on that last post, Receivng it tax free in UK is fine, but is it still taxable here?

Re: Non Habitual Resident Regime
 

If you're resident in Portugal, yes.

The NHR scheme reduces the rate of tax paid on certain types and sources of income.

Re: Non Habitual Resident Regime
 

My understanding is that the cut off was today for zero rate tax under the NHR scheme. From now on, there will be a flat rate of 10% tax.

Re: Non Habitual Resident Regime
 

If one has the new NHR (10%) and receive only pension money from the UK state, does the €4100 tax free allowance still apply?

Re: Non Habitual Resident Regime
 

That's an interesting point. According to our lawyer, it's a flat rate of 10% tax with no personal allowance. I would definitely consult a tax specialist in Portugal because it might be beneficial to be taxed under the normal system and receive the person allowance, depending on the income tax rate.