liveaboard

A friend of mine is converting a used fire truck [12 ton awd Mercedes]
into a camper here in Portugal; he told me that the matriculation is not difficult.

I wouldn't normally post second hand info, but this one might not get answered otherwise.

There are plenty of buses available, after a certain age they can no longer be legally used for commercial passenger transport.

Ukkram

The OP is from South Africa and I presume he has shares on the stock exchange as he knows me from the investment forum.

If so, selling some shares for income will be taxed at a flat rate of 28% in PT but exempt in SA as CGT is residency based by the DTA.

No expenses can be deducted from it as it is a flat rate. In SA CGT is an effective 13%. A huge difference so look into the affordability of the difference.

The NHR will not help at all in this case.

rond58

great , tx for the info. Maybe you can offer up your friends contact details so I can chat to him... assuming he can speak English?... lol. A pvt message maybe?. rgds Rond58

Red Eric

Ouch!

I think that might be volunteering a little too much information on his behalf.

chislenko

Have to say Richard I have always found your advice spot on.

Ukkram

What can possibly be embarrassing for having investments? Most of us do.

Red Eric

Not embarrassing but personal and up to each forum member to decide whether they want to divulge such information on this forum.

AliceCaroline

I know we are drifting away from the original question but while we are discussing tax and NHR does anyone know how tax on British Premium Bonds works?

We have invested in Bonds as we know that the UK is happy for you to keep them when you move abroad and you can easily cash them straight into a linked foreign bank account. It also seems wise to have some money stashed in the UK.

But I've been wondering about tax on any prizes? The Portuguese don't seem keen on gambling and I think they tax prizes quite heavily.

Does anyone know if Bond draw prizes are taxed in Portugal, at what rate, and if they would be exempt if accepted on NHR?

Ukkram

I had a glance at the DTA between UK and PT and posted the link below.
There is nothing about windfalls so I assume it gets taxed in the UK at a cap of 10% and NHR will make it exempt in PT.

If the DTA states that a certain tax is only payable in the country of residency ie Portugal then NHR does not give you exemption.

As in my case it is not tax efficient to pay 28% flat rate for CGT on every penny I earn with no deductions allowed and no exemptions when I can pay much less elsewhere in Europe.
https://www.gov.uk/government/upload...-_in_force.pdf

AliceCaroline

Just done a bit more Googling and I think that Premium Bond wins will be taxed as an income.
They aren't taxed in the UK so would be taxed in Portugal if you are on the NHR scheme.
(We will get an accountant when we move, just trying to work out what to expect)

I should think any prizes would be under the lower tax bracket so could be exempt anyway. We only win the odd £25 prize.

I got most of this from the Portugal Resident online..

How UK investments are taxed in Portugal | Portugal Resident

Ukkram

Be careful when getting an accountant here in PT as most know nothing about cross border taxation and NHR tax matters. Going cheap can be very costly.

The link above refers to BlevensFranks and they have offices throughout Europe. I have an appointment for Wednesday with them after going through 2 accountants with a disastrous outcome. AFPOP members get a discount.

macliam

Good luck with that! They are not accountants, they are "wealth managers". If your meeting goes anything like mine, they will suggest that you sell all your "foreign" assets and invest in a Luxemburg fund that they manage....... For questions relating to NHR, etc. they'll refer you to a pet accountant (no doubt with a kickback).

However, I agree that most PT accountants are useless for this kind of thing - like lawyers they concentrate on running within the general PT system and know little else. I found Dennis Swing Greene of Eurofinesco far better - he has actually lived here for decades.

AliceCaroline

I've never heard anything bad about Eurofinesco, except what they charge. I guess you get what you pay for

Ukkram

Received a letter to go to the local Finaças up here in the north with supporting documents.
I did but no one there could understand English at all. I showed them the letter but all I got was waving of hands and they did not even look at the docs I gave them.
A person waiting in the queue said to me that they are saying I must come back with my accountant. My accountant is in the deep south so I phoned her and handed the phone to the guy. After about 30 minutes of haggling he gave the phone back and waved his arms some more.

My accountant sent me an email the same day but I could not understand what she was trying to say.

Very frustrating and I have been looking for a local accountant that speaks English but there are none. Off to a remote Siberian island hut to hide from this.

liveaboard

Same experiences with both firms.
Eurofinesco is very good with cross border stuff, make an appointment to see the boss.