Portuguese MEP asks Commission to investigate NHR
#16
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Re: Portuguese MEP asks Commission to investigate NHR
Can you define "high value added activity" because I spend all my money here and not in France, Germany or any other EU country.
#17
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Location: Burgau Portugal
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Re: Portuguese MEP asks Commission to investigate NHR
Table of activities considered of high added value according to the provisions
of Art. 72, n.º 6 and Art 81, nº 5 of the Personal Income Tax Code (CIRS):
1 - Architects, engineers and similar:
101 - Architects
102 - Engineers
103 - Geologists
2 - Visual artists, actors and musicians:
201 - Theater, ballet, cinema, radio and television artists
202 - Singers
203 - Sculptors
204 - Musicians
205 - Painters
3 - Auditors:
301 - Auditors
302 – Tax Consultants
4 - Doctors and dentists:
401 - Dentists
402 - Medical Analysts
403 - Clinical Surgeons
404 - Ship’s doctor
405 - General Practitioners
406 - Dentists
407 - Clinical dentists
408 - Medical physiatrists
409 - Gastroenterologists
410 - Ophthalmologists
411 – Orthopedic Surgeon
412 - ENT(Ear Nose and Throat) specialists
413 -Pediatricians
414 - Radiologists
415 - Doctors from other specialties
5 - Teachers:
501 - Professors
6 - Psychologists:
601 - Psychologists
7 - Liberal Professionals, technicians and alike:
701 - Archaeologists
702 - Biologists and life sciences experts
703 - Computer Programmers
704 - Software consultant and activities related to information technology and computing
705 – Computer programming activities
706 - Computer consultancy activities
707 - Management and operation of computer equipment
708 – Data services
709 - Data processing, hosting and related activities; Web portals
710 - Data processing, hosting and related activities
711 - Other data service activities
712 – News agencies
713 - Other information service activities
714 - Scientific research and development
715 - Research and experimental development on natural sciences and engineering
716 - Research and development in biotechnology
717 - Designers
8 - Investors, Managers and Directors:
801 - Investors, Directors and managers of companies that promote productive
investment, as long as they are connected to projects and concession contracts that are
eligible for tax benefits per the Investment Tax Code (Código Fiscal)
802 - Upper Management
#18
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Re: Portuguese MEP asks Commission to investigate NHR
Thanks for that. Interesting, so high value is about contribution to society and not just money.
#19
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Re: Portuguese MEP asks Commission to investigate NHR
You don't need to have a lot of money for NHR either, it's not dependant on your income (that's the Golden Visa). Even on a small pension you can be accepted & benefit from the NHR scheme.
#20
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Re: Portuguese MEP asks Commission to investigate NHR
You can also still benefit being of pre-pension age and without employed or self-employed earnings, just passive income e.g. rental income etc.
#21
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Re: Portuguese MEP asks Commission to investigate NHR
Ok sounds interesting but where is the benefit in this case. Is the rental income not taxed then for 10 years like your pension.
#22
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Re: Portuguese MEP asks Commission to investigate NHR
Yes, a variety of so-called passive incomes can be, so long as they meet criteria, exempt from tax in Portugal for the 10-year NHR period. You can find more information on the scheme on the AT/Finanças website.
#23
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Posts: 257
Re: Portuguese MEP asks Commission to investigate NHR
I wonder if any one here actually declared high value activity when applying for NHR. I applied NHR and approved. But there was no such option, but I intend to work in such activity.
#24
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Re: Portuguese MEP asks Commission to investigate NHR
From memory, when we applied online, somewhere in the process, perhaps at the end, the application advised that if you are carrying out one of the high value added activities you must send to the given address evidence, and it gave a suggestion of suitable types of evidence, in order that that activity could be approved and the correct code added to your NHR status. Until such time, everybody is given a default code, I believe 888, indicating no high value added activity on record. Have a look on the AT portal again. I believe that if you don’t do that part, NHR rules won’t be applied to your activity income.
#25
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Re: Portuguese MEP asks Commission to investigate NHR
From memory, when we applied online, somewhere in the process, perhaps at the end, the application advised that if you are carrying out one of the high value added activities you must send to the given address evidence, and it gave a suggestion of suitable types of evidence, in order that that activity could be approved and the correct code added to your NHR status. Until such time, everybody is given a default code, I believe 888, indicating no high value added activity on record. Have a look on the AT portal again. I believe that if you don’t do that part, NHR rules won’t be applied to your activity income.
#26
Polished expat
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Location: Arcos de Valdevez "Onde Portugal se fez"
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Re: Portuguese MEP asks Commission to investigate NHR
Ahem ….. sorry to interrupt the tutorial on applying for and benefiting from the scheme but just to return to the original topic for a moment, here is the response to Ana Gomes' letter from Pierre Moscovici, the European Commissioner for Economic and Financial Affairs, Taxation and Customs.
Reply from Commissioner Moscovici to the letter concerning the tax exemption to non-habitual residents
Reply from Commissioner Moscovici to the letter concerning the tax exemption to non-habitual residents
Last edited by Red Eric; Apr 23rd 2019 at 1:18 pm.
#27
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Re: Portuguese MEP asks Commission to investigate NHR
sounds like there's no threat to NHR from the EU then.
#28
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Re: Portuguese MEP asks Commission to investigate NHR
Certainly not of the "stop that immediately" variety at this stage, anyway.
Which is hardly a big surprise, given the longevity of the scheme and the fact that the Commission could hardly have failed to be fully aware of it for all of that time.
The last paragraph does seem to indicate the possibility of future frowning, though. It also seems in keeping with public statements made by the PM and the Finance Minister about Portugal's willingness to discuss concerns with other member states and agree some amendments as part of a look at the overall situation in the EU, as opposed to PT making unilateral concessions.
Which is hardly a big surprise, given the longevity of the scheme and the fact that the Commission could hardly have failed to be fully aware of it for all of that time.
The last paragraph does seem to indicate the possibility of future frowning, though. It also seems in keeping with public statements made by the PM and the Finance Minister about Portugal's willingness to discuss concerns with other member states and agree some amendments as part of a look at the overall situation in the EU, as opposed to PT making unilateral concessions.
#29
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Re: Portuguese MEP asks Commission to investigate NHR
It's obvious that Ana Gomes is well aware that the scheme is open to Portuguese nationals as she makes a point of mentioning the numbers who have acquired the status in her letter. However, discrimination isn't the only grounds for her complaint - although as a law graduate with a further course specifically on Community Law and years of very active service as an MEP under her belt, we can probably assume she knows both what constitutes discrimination and how the Commission might see that aspect of her complaint in this particular case.
The Commission itself has a somewhat elastic definition, judging by a previous opinion of theirs involving Portugal. They deemed the system of exemptions and discounts available when tolls were first introduced on the ex SCUT roads for those residents who acquired a transponder and satisfied a couple of other conditions to be discriminatory on the grounds of nationality, despite the fact that as long as you satisfied the conditions, it didn't matter what nationality you were.
The Commission itself has a somewhat elastic definition, judging by a previous opinion of theirs involving Portugal. They deemed the system of exemptions and discounts available when tolls were first introduced on the ex SCUT roads for those residents who acquired a transponder and satisfied a couple of other conditions to be discriminatory on the grounds of nationality, despite the fact that as long as you satisfied the conditions, it didn't matter what nationality you were.
#30
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Re: Portuguese MEP asks Commission to investigate NHR
Of course if I am correct in that view^^ it gives the commission fairly wide discretion to determine 'proportionate' and 'legitimate'