Proving NHR to UK taxation authorities
Aug 8th 2022, 3:05 pm
#17
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Thread Starter
Joined: Oct 2019
Posts: 118
Re: Proving NHR to UK taxation authorities
A holiday let business could operate only during the season, even only a couple of months in the year. The issue here could be more with the relevant expenses, and whether it is a sole trader, or Ltd, etc.
With regards to the residence - I can't see how anyone spending less than 183 days a year, and not having a permanent home (see definition in the Tax Code) in Portugal could be considered a fiscal resident for that year, NHR or not.
With regards to the residence - I can't see how anyone spending less than 183 days a year, and not having a permanent home (see definition in the Tax Code) in Portugal could be considered a fiscal resident for that year, NHR or not.
I pay UK tax on my UK earnings, which is offset against my Portuguese NHR tax. I have a permanent home here in Portugal. The only issue (as far as I can see) is that I didn't (when lockdown kept me in the UK) spend 183 days in Portugal. Or am I missing something here?
Aug 8th 2022, 3:28 pm
#18
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Joined: Apr 2017
Location: Greater Lisbon
Posts: 263
Re: Proving NHR to UK taxation authorities
I pay UK tax on my UK earnings, which is offset against my Portuguese NHR tax. I have a permanent home here in Portugal. The only issue (as far as I can see) is that I didn't (when lockdown kept me in the UK) spend 183 days in Portugal. Or am I missing something here?
Ideally ask Financas for a formal response whether they want you to submit a tax return in PT for that year, if you haven't submitted one already, and that should be pretty much it on PT side.
Your reporting obligations to HMRC with regards to your UK income and to your PT income, if any, are a different matter, and those are perhaps covered by your UK accountant.
Aug 8th 2022, 4:39 pm
#19
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Joined: Oct 2019
Posts: 457
Re: Proving NHR to UK taxation authorities
I pay UK tax on my UK earnings, which is offset against my Portuguese NHR tax. I have a permanent home here in Portugal. The only issue (as far as I can see) is that I didn't (when lockdown kept me in the UK) spend 183 days in Portugal. Or am I missing something here?
UK taxes cant be offset against NHR, only taxes under dual taxation agreement can be offset.
If you spend less then 183 days in a year in PT, usually you are not classed as tax or immigrant resident (with some exceptions).
You can be liable for taxes in multiple countries, not just for country in which you spend most of time.
Aug 11th 2022, 6:00 pm
#20
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Joined: Oct 2019
Posts: 118
Re: Proving NHR to UK taxation authorities
You'll only pay UK taxes if you fail SRT, have civil service pension or are landlord. In which case UK tax will be due on ALL your worldwide income. Obviously, you would need to inform hmrc if you are not residing in UK.
UK taxes cant be offset against NHR, only taxes under dual taxation agreement can be offset.
If you spend less then 183 days in a year in PT, usually you are not classed as tax or immigrant resident (with some exceptions).
You can be liable for taxes in multiple countries, not just for country in which you spend most of time.
UK taxes cant be offset against NHR, only taxes under dual taxation agreement can be offset.
If you spend less then 183 days in a year in PT, usually you are not classed as tax or immigrant resident (with some exceptions).
You can be liable for taxes in multiple countries, not just for country in which you spend most of time.
