Property sale, CGT and PT residency (+NHR...?)
#1
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Property sale, CGT and PT residency (+NHR...?)
Apologies if this has been mentioned but I'm unclear about the potential liability for CGT or other tax (and NHR possibilties) when selling property in another country and one's subsequent entry into the Portuguese system. The sequencing of selling property,and registering for residency has me confused.
When selling my apartment in Italy I won't be liable here for CGT
Could someone outline (or detail if you wish ) the way/timing of actions to avoid being subject to CGT or other property sale proceeds tax in PT? Is the timing of the sale relevant to when one registers for residency? What chronologies of actions positively and negatively affect the finances when one registers for residency?
Also, the NHR registration: can this be taken advantage of in any way in regards to the sale of a property and the transfer of funds to PT?
Thank you for any input
When selling my apartment in Italy I won't be liable here for CGT
Could someone outline (or detail if you wish ) the way/timing of actions to avoid being subject to CGT or other property sale proceeds tax in PT? Is the timing of the sale relevant to when one registers for residency? What chronologies of actions positively and negatively affect the finances when one registers for residency?
Also, the NHR registration: can this be taken advantage of in any way in regards to the sale of a property and the transfer of funds to PT?
Thank you for any input
#2
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Re: Property sale, CGT and PT residency (+NHR...?)
If you registered on the nhr, there is no tax on CGT on fixed property sold in Italy - either before or after residence. If property is sold before becoming resident in Portugal, no need to declare it - not the Portuguese tax authority's business. After becoming a resident it needs to be declared and the amount may be taken into account in calculating taxes on non exempt income
#3
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Re: Property sale, CGT and PT residency (+NHR...?)
If you registered on the nhr, there is no tax on CGT on fixed property sold in Italy - either before or after residence. If property is sold before becoming resident in Portugal, no need to declare it - not the Portuguese tax authority's business. After becoming a resident it needs to be declared and the amount may be taken into account in calculating taxes on non exempt income
Last edited by campos; Aug 4th 2020 at 5:12 pm.
#4
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Re: Property sale, CGT and PT residency (+NHR...?)
This is great, just what i was after. Thanks a lot. Just a follow-up : so with a non-resident NIF, one can register on NHR? Am thinking of renting in PT during selling period (but before the final exchange of deeds). By the time I register for residency in PT, after the 3 month stretch, the house sale will be behind me.
#5
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Re: Property sale, CGT and PT residency (+NHR...?)
I was wondering if one can register/apply for NHR as a non-resident - to take advantage of the CGT avoidance on my property sale in Italy, as you mentioned on your first reply. From your wording am I to understand it is possible...? I will apply for residence after the 3 months requirement living in the country(during which time I will close on my Italy prop sale)
#6
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Re: Property sale, CGT and PT residency (+NHR...?)
This is great, just what i was after. Thanks a lot. Just a follow-up : so with a non-resident NIF, one can register on NHR? Am thinking of renting in PT during selling period (but before the final exchange of deeds). By the time I register for residency in PT, after the 3 month stretch, the house sale will be behind me.
#7
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Re: Property sale, CGT and PT residency (+NHR...?)
This is looking horrible for me. I'm very far from confident at this point of being able to change the address on my NIF - have to go to Braga, where the NIF was issued 28 years ago, but I'm not optimistic as they won't even make me an appointment online - and so won't be able to claim NHR status.
And my house sale is very unlikely to complete before I become resident in Portugal (hopefully mid September).
And my house sale is very unlikely to complete before I become resident in Portugal (hopefully mid September).
#8
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Re: Property sale, CGT and PT residency (+NHR...?)
This is looking horrible for me. I'm very far from confident at this point of being able to change the address on my NIF - have to go to Braga, where the NIF was issued 28 years ago, but I'm not optimistic as they won't even make me an appointment online - and so won't be able to claim NHR status.
And my house sale is very unlikely to complete before I become resident in Portugal (hopefully mid September).
And my house sale is very unlikely to complete before I become resident in Portugal (hopefully mid September).
#9
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Re: Property sale, CGT and PT residency (+NHR...?)
Thanks, Tony. Yes, I know about this. I have already been to the Setúbal office with a wad of documentation of my residence in UK for the last 20 years, including a letter to that effect from HMRC. They were very helpful, but told me I'd have to go to Braga to deal with it, and they weren't optimistic!
#10
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Re: Property sale, CGT and PT residency (+NHR...?)
Thanks, Tony. Yes, I know about this. I have already been to the Setúbal office with a wad of documentation of my residence in UK for the last 20 years, including a letter to that effect from HMRC. They were very helpful, but told me I'd have to go to Braga to deal with it, and they weren't optimistic!
It looks that the tax office in Setubal was just passing the buck. However you must understand that tax offices are there to extract money from the tax payer and not to resolve individual tax payers issues and provide advice etc . Sometimes they may (and often do) provide advice on how to sort out an issue, but that is not their function - they are an enforcement agency
#11
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Re: Property sale, CGT and PT residency (+NHR...?)
As I understand it, once I'm resident in Portugal (hopefully September) it will be impossible to backdate it. So I'm planning a short trip to Braga at end of August to attempt to do this.
#12
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Re: Property sale, CGT and PT residency (+NHR...?)
You may or may not want to back date it - your are talking about tax strategies, etc - and without knowing the details and paperwork available, impossible to provide proper advice. In terms of going to Braga - unless you really want to, otherwise not necessary
#13
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Re: Property sale, CGT and PT residency (+NHR...?)
Thanks again. As I understand it, NHR status will be beneficial to me in Portugal, hence the wish to at least have that avenue open to me!