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Retaining residency

Retaining residency

Old Jun 24th 2020, 8:59 pm
  #1  
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Default 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?
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Old Jun 25th 2020, 6:26 am
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Default 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 :
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.
If it's the permanent resident card, valid for 10 years, it's
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.
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?
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Old Jun 25th 2020, 8:13 am
  #3  
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Default 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.

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Old Jun 25th 2020, 9:51 am
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Default 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."
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Old Jun 25th 2020, 1:12 pm
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Default Re: Retaining residency

Well spotted.

Thanks for the correction - very useful.
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Old Jun 25th 2020, 1:44 pm
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Thumbs up Re: Retaining residency

Originally Posted by Red Eric View Post
Well spotted.

Thanks for the correction - very useful.
No, thank you. :-)
Your post are always very informative and useful.
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Old Jun 25th 2020, 2:46 pm
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Default Re: Retaining residency

Originally Posted by riv View Post
##
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.
I am working under the same premise, I'm stuck in the UK and as the Foreign and Commonwealth Office 'non but essential' travel advisory is still in place then that should meet the exceptional circumstances criteria
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Old Jun 25th 2020, 7:38 pm
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Default 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.
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Old Jun 26th 2020, 9:52 am
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Default Re: Retaining residency

Originally Posted by Red Eric View Post
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?
Apologies, I'm hijacking a thread now. In the case of the initial registration certificate, valid for 5 years, do you have to become a tax resident t optain this registration?
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Old Jun 26th 2020, 11:40 am
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Default Re: Retaining residency

Originally Posted by bons View Post
Apologies, I'm hijacking a thread now. In the case of the initial registration certificate, valid for 5 years, do you have to become a tax resident t optain this registration?
No you don’t, although you will be using this registration to change address with finanças afterwards ( become PT tax resident).
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Old Jun 26th 2020, 9:39 pm
  #11  
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Default 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?
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Old Jun 27th 2020, 4:41 am
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Default 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.
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Old Jun 27th 2020, 7:45 am
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Default 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
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Old Jun 27th 2020, 1:51 pm
  #14  
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Default 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.

Originally Posted by Red Eric View Post
ricko - you have NHR status in Portugal, do you not?

That insulates you against paying Portuguese CGT on the sale of property located elsewhere.
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Old Jun 27th 2020, 5:43 pm
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Default 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.
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