Retaining residency
#1
BE Enthusiast
Thread Starter
Joined: Jan 2006
Posts: 360
Retaining residency
Due to a couple of unexpected events, I've been in the UK since early
this year.
I don't want to consider returning to PT until the risk to myself
and others is minimal.
So I will have been away from PT for a considerable period, and am
concerned about it affecting my continued residency.
Does anyone know what obligations need to be met to ensure
residency is maintained?
this year.
I don't want to consider returning to PT until the risk to myself
and others is minimal.
So I will have been away from PT for a considerable period, and am
concerned about it affecting my continued residency.
Does anyone know what obligations need to be met to ensure
residency is maintained?
#2
Re: Retaining residency
It depends on what residency document you hold.
If it's the initial registration certificate, valid for 5 years, then it's as follows :
If it's the permanent resident card, valid for 10 years, it's
Source here (on page 7)
That's under normal circumstances. There are allowances being made eg for people in Portugal whose visas or other documents expired during the crisis but I can't see specific mention of breaking of continuous residence.
Are you within the allowed absences period for the document you hold at the moment?
If it's the initial registration certificate, valid for 5 years, then it's as follows :
4 - Continuity of residence shall not be affected by temporary absences not exceeding a total of six consecutive months a year, or by absences of a longer duration for compulsory military service, or by one absence of a maximum of twelve consecutive months for important reasons such as pregnancy and childbirth, serious illness, study or vocational training, or a posting for professional matters in another Member State or a third country.
5 – Once acquired, the Union citizen shall only loose the right of permanent residence by absence from the national territory for a period exceeding two consecutive years.
That's under normal circumstances. There are allowances being made eg for people in Portugal whose visas or other documents expired during the crisis but I can't see specific mention of breaking of continuous residence.
Are you within the allowed absences period for the document you hold at the moment?
#3
BE Enthusiast
Joined: May 2011
Posts: 808
Re: Retaining residency
##
temporary absences not exceeding.......
maximum of twelve consecutive months for important reasons such as ......
##
I am a lawyer by training ( albeit not Portuguese training, lol ).
I cannot give a categorical assurance, but I would have thought that 'obeying the rules imposed by the competent authorities in both the UK and Portugal ( rules occasioned by the Covid 19 crisis ) ' amounted to 'important reasons' justifying the ( up to ) 12 month absence.
If I were in your situation I would have no qualms about remaining in the UK ( if indeed that is what you wish to do ) for the rest of the summer.
I would be thinking about planning for a return in early September, to get the benefit of the clement weather in that month, and also, possibly ( we shall see ) hopefully the benefit of the July and August HEAT having killed off the virus in Portugal.
temporary absences not exceeding.......
maximum of twelve consecutive months for important reasons such as ......
##
I am a lawyer by training ( albeit not Portuguese training, lol ).
I cannot give a categorical assurance, but I would have thought that 'obeying the rules imposed by the competent authorities in both the UK and Portugal ( rules occasioned by the Covid 19 crisis ) ' amounted to 'important reasons' justifying the ( up to ) 12 month absence.
If I were in your situation I would have no qualms about remaining in the UK ( if indeed that is what you wish to do ) for the rest of the summer.
I would be thinking about planning for a return in early September, to get the benefit of the clement weather in that month, and also, possibly ( we shall see ) hopefully the benefit of the July and August HEAT having killed off the virus in Portugal.
#4
Re: Retaining residency
Sorry Red_Eric, but your quote is slightly incorrect as quote is from generic EU rules.
Brits are covered by WA, which gives holders of permanent residency authorized absence up to 5 years, instead of usual 2 year.
https://imigrante.sef.pt/en/brexit/f...-7a19e4a8-785a
"Because you have already acquired the permanent residence in Portugal before leaving, you will be covered by the Withdrawal Agreement if you return within a five year time from the date of leaving."
Brits are covered by WA, which gives holders of permanent residency authorized absence up to 5 years, instead of usual 2 year.
https://imigrante.sef.pt/en/brexit/f...-7a19e4a8-785a
"Because you have already acquired the permanent residence in Portugal before leaving, you will be covered by the Withdrawal Agreement if you return within a five year time from the date of leaving."
#7
Forum Regular
Joined: Oct 2019
Location: Porches, Algarve
Posts: 75
Re: Retaining residency
##
temporary absences not exceeding.......
maximum of twelve consecutive months for important reasons such as ......
##
I am a lawyer by training ( albeit not Portuguese training, lol ).
I cannot give a categorical assurance, but I would have thought that 'obeying the rules imposed by the competent authorities in both the UK and Portugal ( rules occasioned by the Covid 19 crisis ) ' amounted to 'important reasons' justifying the ( up to ) 12 month absence.
If I were in your situation I would have no qualms about remaining in the UK ( if indeed that is what you wish to do ) for the rest of the summer.
I would be thinking about planning for a return in early September, to get the benefit of the clement weather in that month, and also, possibly ( we shall see ) hopefully the benefit of the July and August HEAT having killed off the virus in Portugal.
temporary absences not exceeding.......
maximum of twelve consecutive months for important reasons such as ......
##
I am a lawyer by training ( albeit not Portuguese training, lol ).
I cannot give a categorical assurance, but I would have thought that 'obeying the rules imposed by the competent authorities in both the UK and Portugal ( rules occasioned by the Covid 19 crisis ) ' amounted to 'important reasons' justifying the ( up to ) 12 month absence.
If I were in your situation I would have no qualms about remaining in the UK ( if indeed that is what you wish to do ) for the rest of the summer.
I would be thinking about planning for a return in early September, to get the benefit of the clement weather in that month, and also, possibly ( we shall see ) hopefully the benefit of the July and August HEAT having killed off the virus in Portugal.
#8
BE Enthusiast
Thread Starter
Joined: Jan 2006
Posts: 360
Re: Retaining residency
Thanks for all the replies - they have certainly helped to put my mind at rest.
I have the temporary resident document, and assuming that Covid 19
is seen as exceptional circumstances, I assume I will have until
early 2021 to return.
Are there any other obligations to fulfill? It occured to me that
I might need to inform the authorities of may absence, but it
appears there is no facility to change address on the Portal das
Financas.
I have the temporary resident document, and assuming that Covid 19
is seen as exceptional circumstances, I assume I will have until
early 2021 to return.
Are there any other obligations to fulfill? It occured to me that
I might need to inform the authorities of may absence, but it
appears there is no facility to change address on the Portal das
Financas.
#9
BE Enthusiast
Joined: Nov 2018
Posts: 908
Re: Retaining residency
It depends on what residency document you hold.
If it's the initial registration certificate, valid for 5 years, then it's as follows :
If it's the permanent resident card, valid for 10 years, it's
Source here (on page 7)
That's under normal circumstances. There are allowances being made eg for people in Portugal whose visas or other documents expired during the crisis but I can't see specific mention of breaking of continuous residence.
Are you within the allowed absences period for the document you hold at the moment?
If it's the initial registration certificate, valid for 5 years, then it's as follows :
If it's the permanent resident card, valid for 10 years, it's
Source here (on page 7)
That's under normal circumstances. There are allowances being made eg for people in Portugal whose visas or other documents expired during the crisis but I can't see specific mention of breaking of continuous residence.
Are you within the allowed absences period for the document you hold at the moment?
#10
Forum Regular
Joined: Feb 2016
Posts: 257
Re: Retaining residency
#11
BE Enthusiast
Thread Starter
Joined: Jan 2006
Posts: 360
Re: Retaining residency
If I have until early 2021 to return to PT, it gives me the
opportunity to tie up some loose ends in the UK.
I moved to PT in a hurry to meet the supposed March 2019 deadline,
leaving a number of matters incomplete.
One was that my house sale fell through. Having lived there for over
30 years I'm concerned about paying CGT in PT.
If I can arrange the sale of my home during my present stay in the
UK, will I be liable for the tax in PT?
opportunity to tie up some loose ends in the UK.
I moved to PT in a hurry to meet the supposed March 2019 deadline,
leaving a number of matters incomplete.
One was that my house sale fell through. Having lived there for over
30 years I'm concerned about paying CGT in PT.
If I can arrange the sale of my home during my present stay in the
UK, will I be liable for the tax in PT?
#12
BE Forum Addict
Joined: Mar 2008
Posts: 1,703
Re: Retaining residency
If you are a resident of Portugal you will be liable for CGT, as non resident second home in the UK at standard rates and that is offset against CGT in Portugal.
#13
Re: Retaining residency
ricko - you have NHR status in Portugal, do you not?
That insulates you against paying Portuguese CGT on the sale of property located elsewhere.
If you didn't have that, you could possibly avail yourself of the (Portuguese) CGT relief on the purchase of your property in Portugal (assuming you have purchased or will purchase one), provided the sale and the purchase were within the allowed timespan.
I think in your case it's more a question of your being able to square things with the UK Revenue but as far as I can tell, even in a worst case scenario, you'd only be liable for tax on the deemed gain from 2015.
Have a dekko at this for starters : Tax if you live abroad and sell your UK home
That insulates you against paying Portuguese CGT on the sale of property located elsewhere.
If you didn't have that, you could possibly avail yourself of the (Portuguese) CGT relief on the purchase of your property in Portugal (assuming you have purchased or will purchase one), provided the sale and the purchase were within the allowed timespan.
I think in your case it's more a question of your being able to square things with the UK Revenue but as far as I can tell, even in a worst case scenario, you'd only be liable for tax on the deemed gain from 2015.
Have a dekko at this for starters : Tax if you live abroad and sell your UK home
#14
BE Enthusiast
Thread Starter
Joined: Jan 2006
Posts: 360
Re: Retaining residency
Yes, I have registered for the NHR regime.
Are there any qualifications to the neutralisation of the CGT in PT?
I seem to remember a recent post that implied that there were other
conditions in addition to having NHR status.
Are there any qualifications to the neutralisation of the CGT in PT?
I seem to remember a recent post that implied that there were other
conditions in addition to having NHR status.
#15
Re: Retaining residency
As far as I'm aware, with regard to immoveable property, the only condition for an exemption via NHR would be that it is potentially taxable in the country where the property is situated, under the terms of the DTT with that country. When I've a little more spare time I'll try to get hold of the Act which details the regime and see if there's anything else buried in there.
But assuming the above is correct for the moment, either you're selling your only or principal property as a UK resident, in which case you're paying neither UK nor PT CGT, or you're selling what is now a 2nd home in the UK as a resident of PT, in which case the gain is potentially taxable in the UK and NHR gives you protection from paying any CGT in Portugal.
That's the way I read it, anyway, but obviously any other opinions (or experiences) would be useful.
But assuming the above is correct for the moment, either you're selling your only or principal property as a UK resident, in which case you're paying neither UK nor PT CGT, or you're selling what is now a 2nd home in the UK as a resident of PT, in which case the gain is potentially taxable in the UK and NHR gives you protection from paying any CGT in Portugal.
That's the way I read it, anyway, but obviously any other opinions (or experiences) would be useful.