Split Year Portuguese Tax Residency /Non-Resident anywhere!
Apr 2nd 2018, 8:07 am
#31
BE Forum Addict
Joined: Jun 2012
Posts: 3,031
Re: Split Year Portuguese Tax Residency /Non-Resident anywhere!
You can claim you are not resident of here, there, or anywhere; you might get away with it.
However, any country's tax department can decide otherwise, and demand you prove that you are not resident in their jurisdiction. If you declare residency in Portugal, then say you aren't resident for a year or two, then become resident again, you're asking for trouble.
The only way to prove that you weren't resident during the period that you suddenly had taxable income, is by being legal resident somewhere else.
The "resident nowhere" status idea is no longer valid, the loophole was closed some time ago.
In taxation, you're liable unless you can prove otherwise.
As I said, you might get away with it; perhaps the tax department will simply accept your declaration without checking the details. It happens all the time.
Just be aware that what you propose is called "tax evasion" and there are penalties if you get caught.
If the amount is enough to make it worthwhile, you could become resident in a jurisdiction that has no capital gains tax for a year; you'll need a tax declaration and residency papers from that country, and it would be a good idea to have a rent agreement and utility bills in your name [Portugal really likes utility bills].
Get advice from another tax consultant.
However, any country's tax department can decide otherwise, and demand you prove that you are not resident in their jurisdiction. If you declare residency in Portugal, then say you aren't resident for a year or two, then become resident again, you're asking for trouble.
The only way to prove that you weren't resident during the period that you suddenly had taxable income, is by being legal resident somewhere else.
The "resident nowhere" status idea is no longer valid, the loophole was closed some time ago.
In taxation, you're liable unless you can prove otherwise.
As I said, you might get away with it; perhaps the tax department will simply accept your declaration without checking the details. It happens all the time.
Just be aware that what you propose is called "tax evasion" and there are penalties if you get caught.
If the amount is enough to make it worthwhile, you could become resident in a jurisdiction that has no capital gains tax for a year; you'll need a tax declaration and residency papers from that country, and it would be a good idea to have a rent agreement and utility bills in your name [Portugal really likes utility bills].
Get advice from another tax consultant.
Apr 4th 2018, 11:06 am
#32
Forum Regular
Joined: Mar 2008
Posts: 59
Re: Split Year Portuguese Tax Residency /Non-Resident anywhere!
