Residency/ Non Habitual Resident
Apr 25th 2020, 8:18 pm
#1
Just Joined
Thread Starter
Joined: Apr 2020
Posts: 11
Residency/ Non Habitual Resident
Hi all
I've read the relevant posts and they don't quite fit my situation. I will be buying a house and registering as a resident this year, but I am being rushed into it by Brexit and am not ready to live in Portugal properly for a couple of years. I am working online. I'm not sure if this would count as passive income, it's classed as passive income in the online world but I don't think that's what they mean in the rules as my income won't be from real estate or a pension (I am working age). I'm happy to pay tax in Portugal, the most important thing for me is to stay registered as a resident, but I will only be able to spend a few months there in the first couple of years. So I'm not sure if I should / can register as a Non Habitual Resident for the first couple of years. Does anyone have any experience of this situation / and/ or can anyone please recommend a Portuguese tax specialist? Many thanks!
I've read the relevant posts and they don't quite fit my situation. I will be buying a house and registering as a resident this year, but I am being rushed into it by Brexit and am not ready to live in Portugal properly for a couple of years. I am working online. I'm not sure if this would count as passive income, it's classed as passive income in the online world but I don't think that's what they mean in the rules as my income won't be from real estate or a pension (I am working age). I'm happy to pay tax in Portugal, the most important thing for me is to stay registered as a resident, but I will only be able to spend a few months there in the first couple of years. So I'm not sure if I should / can register as a Non Habitual Resident for the first couple of years. Does anyone have any experience of this situation / and/ or can anyone please recommend a Portuguese tax specialist? Many thanks!
Apr 26th 2020, 7:35 am
#2
Polished expat
Joined: Jul 2014
Location: Arcos de Valdevez "Onde Portugal se fez"
Posts: 16,831
Re: Residency/ Non Habitual Resident
Hi, and welcome to the forum from me 
It depends on what you're doing with the rest of your time. If you're primarily spending it all in another (one) country and that's where your "centre of life" is, then that is where you are resident. You shouldn't be registering as resident in Portugal unless you are staying for a period of more than 90 days, in which case you become legally obliged (if an EU citizen) to register your presence at the town hall within the 30 days following that. You may, if intending to put down roots, register within the initial 90 days. That still applies during the Brexit transition period but things change once the UK is out.
You might, under certain circumstances, be able to be considered resident in Portugal even if not spending the majority of the year here but not under the circumstance that you are continuing to live and work predominantly in the country in which you currently reside. Or at least, not under any circumstance that I can think of involving that scenario.
The term Non Habitual Resident applied in Portugal refers to a special tax regime which is open to people who become resident in Portugal, who weren't tax resident within any of the previous 5 years. A slightly confusing name, since you do need to be (or intend to be from the moment of arrival) resident in order to be eligible to apply for it, although once you understand that, the logic of the term becomes apparent.
It depends on what you're doing with the rest of your time. If you're primarily spending it all in another (one) country and that's where your "centre of life" is, then that is where you are resident. You shouldn't be registering as resident in Portugal unless you are staying for a period of more than 90 days, in which case you become legally obliged (if an EU citizen) to register your presence at the town hall within the 30 days following that. You may, if intending to put down roots, register within the initial 90 days. That still applies during the Brexit transition period but things change once the UK is out.
You might, under certain circumstances, be able to be considered resident in Portugal even if not spending the majority of the year here but not under the circumstance that you are continuing to live and work predominantly in the country in which you currently reside. Or at least, not under any circumstance that I can think of involving that scenario.
The term Non Habitual Resident applied in Portugal refers to a special tax regime which is open to people who become resident in Portugal, who weren't tax resident within any of the previous 5 years. A slightly confusing name, since you do need to be (or intend to be from the moment of arrival) resident in order to be eligible to apply for it, although once you understand that, the logic of the term becomes apparent.
Apr 26th 2020, 9:49 am
#3
Just Joined
Thread Starter
Joined: Apr 2020
Posts: 11
Re: Residency/ Non Habitual Resident
Hi, and welcome to the forum from me
It depends on what you're doing with the rest of your time. If you're primarily spending it all in another (one) country and that's where your "centre of life" is, then that is where you are resident. You shouldn't be registering as resident in Portugal unless you are staying for a period of more than 90 days, in which case you become legally obliged (if an EU citizen) to register your presence at the town hall within the 30 days following that. You may, if intending to put down roots, register within the initial 90 days. That still applies during the Brexit transition period but things change once the UK is out.
You might, under certain circumstances, be able to be considered resident in Portugal even if not spending the majority of the year here but not under the circumstance that you are continuing to live and work predominantly in the country in which you currently reside. Or at least, not under any circumstance that I can think of involving that scenario.
The term Non Habitual Resident applied in Portugal refers to a special tax regime which is open to people who become resident in Portugal, who weren't tax resident within any of the previous 5 years. A slightly confusing name, since you do need to be (or intend to be from the moment of arrival) resident in order to be eligible to apply for it, although once you understand that, the logic of the term becomes apparent.
It depends on what you're doing with the rest of your time. If you're primarily spending it all in another (one) country and that's where your "centre of life" is, then that is where you are resident. You shouldn't be registering as resident in Portugal unless you are staying for a period of more than 90 days, in which case you become legally obliged (if an EU citizen) to register your presence at the town hall within the 30 days following that. You may, if intending to put down roots, register within the initial 90 days. That still applies during the Brexit transition period but things change once the UK is out.
You might, under certain circumstances, be able to be considered resident in Portugal even if not spending the majority of the year here but not under the circumstance that you are continuing to live and work predominantly in the country in which you currently reside. Or at least, not under any circumstance that I can think of involving that scenario.
The term Non Habitual Resident applied in Portugal refers to a special tax regime which is open to people who become resident in Portugal, who weren't tax resident within any of the previous 5 years. A slightly confusing name, since you do need to be (or intend to be from the moment of arrival) resident in order to be eligible to apply for it, although once you understand that, the logic of the term becomes apparent.
