m2m2012

Hi, it's the nomad guy again. I need to be out of the country I'm currently nomading in before the end of Oct 2021 (in 3 months from now). As I mentioned in a previous post, I'm Aussie born with an Aussie passport but I'm lucky enough to also have an EU passport and ID Card through ancestry...but I have never been an EU resident or tax resident.

I would like to fly to Portugal in mid to late Oct and find a place to rent...but; I absolutely do not want to become a tax resident of Portugal in the calendar year 2021. I want that to happen in calendar year 2022. So from my understanding of the tax residency laws, I should avoid signing a long term lease in 2021 because that would indicate I am making Portugal my habitual residence or abode, thus making me a tax resident regardless of the fact I have not spent 183 days or more in Portugal during the 2021 calendar year. It's also worth remembering if I arrive in mid Oct I will not legally be required to obtain an EU citizen Registration Certificate until after the end of the calendar year.

So this is my plan:

-Fly to Portugal mid to late Oct 2021

-Find a place to live until the end of the calendar year. The purpose of the stay is an exploratory trip to see if I like the country as well as tourism; I am not making Portugal my habitual residence.

-Late Dec or early Jan perhaps make a short trip to Spain keeping the bus tickets as proof. In Spain I would decide whether or not I want to make Portugal my habitual residence.

-In Jan 2022 sign a long term lease (12 or more months) thus making Portugal my habitual residence as well as becoming a tax resident for 2022. I will need a long term lease to later apply for the non-habitual resident regime.

-Also in Jan 2022 apply for an EU citizen Registration Certificate.

-My nomading days have come to an end (for the time being) !


The only thing I'm unsure about is how easy it will be to find a affordable place to live from Oct to the end of the year. Anyone have any ideas?

Loafing Along

Worth your while reading the following link from Portuguese government : https://eportugal.gov.pt/en/cidadaos...ir-em-portugal
All in english.
With an EU passport / ID card you can travel here for 90 days without any problem. In theory you cannot become a resident until after the initial 90 day stay.
Winter lets are generally available in the Algarve region , many holiday home owners who focus on the summer months offer relatively lower rates after 1st October . Loads of websites to choose from , just search winter lets.

m2m2012

Thanks Loafing Along for your reply.

My main concern is tax residency, not residency (registration), although these two separate things can be linked depending on the circumstances.

You can become a tax resident from day one of your arrival in Portugal if the Finanças considers you have established a "habitual residence".

By not signing a long term lease in 2021, and by making a short trip to Spain that resets the 90 day registration clock...it makes it very difficult for the Finanças to argue I became a tax resident in 2021.

m2m2012

I've just read this:

"Renting an apartment or house in Portugal requires you to have a Tax Identification Number (TIN). There are also instances where you will need a Portuguese guarantor. If you don’t have one, you’ll be required to pay the rent in advance and a deposit. The advance payments depend on the real estate company you’re negotiating with."

Is this true? Can I get a TIN without being registered?

Red Eric

Yes, you can have a tax number (Numero de Identificação, or NIF for short) without being resident.

You'd need one, for example, to set up a bank account but you can be non resident and have a PT bank account. Also to own a property - likewise.

There's a flag on your record which says whether you're resident or not. Its setting relies principally on you telling the tax authority your current status, which you're obliged by law to do within 60 days of any change.

toots sweet

"By not signing a long term lease in 2021, and by making a short trip to Spain that resets the 90 day registration clock...it makes it very difficult for the Finanças to argue I became a tax resident in 2021."

You have to leave the Shengen area for 90 days to reset the clock. The rule is 90 days in 90 days out.You can't just hop out for a week or two to reset the clock. You can only spend 90 days in PT/EU in each 180 days, unless you apply for residency or a visa.

Loafing Along

A holiday let does not require a TIN , think of all the tourists who come and go every year ( in a normal year )

EU.flag

That is not true. You can apply for CRUE from moment you arrive.

EU.flag

OP mentioned that he/she has EU passport, therefore Schengen rules will not apply. Unless he enters with AUS passport.

Loafing Along

Yes but you do not have to until after the initial 90 days .https://eportugal.gov.pt/en/cidadaos...ir-em-portugal

See paragraph on Residence for EU citizens

m2m2012

Correct; there are no 90 days Schengen rules for EU passport holders. I will not be using my Australian passport.

Off topic, but did you know that Her Majesty's Australian Government has bilateral agreements with a number of EU/Schengen countries (but not Portugal) that can allow Aussies to spend more than 90 days per 180 days?

See:

https://www.traveller.com.au/how-the...initely-h0ufui

Maybe a good topic to raise at the next pub Brexit debate!

EU.flag

Any agreement will have to work both ways. UK has no appetite to ease up immigration from any EU country, having just quit.

I do wonder about practicality of that 1950 agreement. If one is to show up on Schengen border with AUS passport, he will be given Schengen stamp and 90 day clock starts.
Does AUS need to first shout "I hereby invoke 1950 agreement, thou shall pass" ?

m2m2012

These agreements override the 90 day Schengen rule; but they are very complex...you need to very carefully do your homework and planning, keep records and tickets to be able to prove when you crossed internal Schengen borders (which have no passport control), carry copies of the rules in English and other languages. Complex but can be done; I'm sure that there are Australians that make use of these rules. Pity Portugal isn't in on the deal.

ricko

I have read previously that the governemnt has a rule that if you are present on the 31 December they can claim you are tax resident for that year.
I have not seen any further details of this, nor have I heard of it being enforced.

Rambling archer

Is that not Spain? Here in Pt, we have residency from the date we got it from the Town Hall, and although we had to declare all incomes for the whole year, were only liable for tax on the half year or less from the residency date and the relevant figures were extracted for that purpose, and of course with NHR we had no tax to pay after all was calculated. Spain has a whole year tax position.