Step by Step - Arrival in Portugal
 

Dear all,

First of all, thank you for your help earlier (a few months back now :) )! I'm now getting closer to the move and am wondering whether I've got all my steps figured out or whether I've overlooked something. This is what I had planned:

- obtain fiscal number (numero de contribuinte)
- register with health service (numero de utente)
- apply for residency within 3 months of arrival

I'm unclear about the non-habitual residency tax application: do I do this when I get the fiscal number, but BEFORE the residency application or following the residency application?

Also: I'll be casting my net wide as it were for my house hunt, so it's doubtful that I'll be in the same concelho necessarily to the one where I'll initially be based. I was planning on applying for all the above numbers in my first location (I'll stay at a holiday rental). Is it then just a matter of going to your new camara in the new concelho and request a change of address?

Many thanks in advance for your help :) I hope I haven't forgotten anything there :)

Sarah

Re: Step by Step - Arrival in Portugal
 

I think you will need to apply for NHR after your register the residency.

Re: Step by Step - Arrival in Portugal
 

You can apply for the NHR during your first year of residency, is not necessary to do so when you apply for your fiscal number. So if you arrive late in the year maybe worth waiting until the following year to get 10 years full benefit
Don't forget to add driving licence to the list , either needs a Portuguese piece of paper to verify its content or maybe need to apply for a Portuguese one.
Ditto if you are bringing a car, can bring one in duty-free if you start the process as soon as you are resident.

Re: Step by Step - Arrival in Portugal
 

Thanks qianh and Loafing Along! My income is generated abroad, so am I right then that I will get an annual tax bill after the end of the tax year, i.e. I ought to save that amount during the year ready to make the payment the following year. Apologies, as an employee, I always paid income tax via PAYE in UK, so am wondering how to do this now that it won't automatically be deducted anymore.

Re driving license: is there a timeframe for this and does this apply also if one won't own a car, i.e. I'm considering using rental cars as and when needed.

Re: Step by Step - Arrival in Portugal
 

Hi Sarah
Yes I think you need to fill IRS return before following March/April. I plan to use an accountant when I am going to make the move, or at least for the first year, to make sure everything is done properly. They can also give you relevant professional advices.

Re: Step by Step - Arrival in Portugal
 

Yes you do your declaration in April for the previous tax year ( calendar year )

Driving licence rules apply when you are a resident, nothing to do with having a car.

Re: Step by Step - Arrival in Portugal
 

Sarah,

You don't mention what driving licence you have but if a UK one, you no longer have to convert it to a Portuguese licence if you don't want to.......... You can now just register it with IMTT or if you prefer, pay a driving school about €20 & have them do it for you.

Re: Step by Step - Arrival in Portugal
 

Can you sit a new test for a Portuguese driving licence. So you have a separate one to the uk one?

Might come in useful if too many points are collected in either country

Re: Step by Step - Arrival in Portugal
 

Not legally.

Re: Step by Step - Arrival in Portugal
 

Only thing to be aware of here is that you must have your NHR before you pay any tax in Portugal. It becomes null and void if you do.

Re: Step by Step - Arrival in Portugal
 

I think you need to register your UK driving licence with the IMTT 60 days after gaining residency. They'll give you a piece of paper to say that you have done this. It just links your licence to your address. You don't need to exchange it for a Portuguese one until it expires. Well before it expires or you'll have to sit a Portuguese driving test.

Like GeniB says you need to get straight onto the NHR scheme in the first year else you won't be eligible, since the main criteria for it is that you haven't paid tax in Portugal in the previous 5 years.
But you don't pay tax until the spring of the year following your arrival, so you should have time to sort out an accountant.

I think the proof of address comes from your local Junta not the Camara. But I guess you'd then have to take this proof of address to the Camara to get your residency updated.

I've not moved over yet so I'm not talking from experience.

This link is to a site about NHR...

http://info.portaldasfinancas.gov.pt...IRS_RNH_EN.pdf

Re: Step by Step - Arrival in Portugal
 

We became resident here in 2016 so have recent experience. I would advise this order:

- obtain fiscal number. You'll probably need to be entered as Non resident first of all, then change residency status with Finanças later on;

- apply for residency, which you can do earlier than 3 months if you know you'll be staying beyond that period, otherwise after 3 months stay you must apply by the end of the 4th month. First get proof of address (Atestão) from your local Junta de Freguesia (parish council) then take that with other necessary documents to your Camâra Municipal (council) for residency certificate;

- with residency certificate, passport and fiscal number you can register at your health centre and obtain a PT state health service patient number;

- by the end of month 5 take the same docs as above plus driving licence to local IMTT office (PT DVLA) to register your overseas (UK?) licence with them. You'll be given a document showing those registration details to carry with you when driving in PT. As someone else said this requirement is based on being resident in PT, regardless whether you own the car you're driving;

- within 2 months of applying for residency, you must change your residency status with Finanças (also change with your PT bank re difference in retained tax on interest);

- once Finanças have you registered as Resident, you can apply for NHR tax status. This must be done online now, so first obtain codes to use the Finanças/AT online portal (will be sent to you in post hence important Finanças has correct address). Then apply for NHR status online. Easy to do now so long as all the personal details already held for you are correct. Not worth paying an accountant several hundred euros at least to do what is now so simple. Think it used to be more difficult to obtain. We had it granted within 48 hours. In order to be eligible you just apply by 31st March of the PT tax year following the tax year in which you became resident ( remember PT tax year Jan-Dec);

- file personal income IRS declaration (tax return) between 1st April and 31st May (other than personal income will be different deadlines). We will be using an accountant to help with our first declaration at least. Main IRS declaration form called Modelo 3, then for overseas income you must also complete Annexo J and for NHR residents also Annexo L.

Hope this helps.

Re: Step by Step - Arrival in Portugal
 

:goodpost:

That's excellent Mac and Mabel.

We are trying to find out if we ought to move over in January 2018 as opposed to November or December 2017.
We don't want to get involved in the 2017 tax year.

Do you know if we are liable for tax from the date we arrive intending to stay or the date we apply for residency?

Re: Step by Step - Arrival in Portugal
 

Many thanks for the post. My planned schedule is registering residency in 2018, if there is no change in the law. I know we can apply for NHR on financas portal but I sometimes find it's not as self explanatory as I expected. That's the reason Why I consider using accountant to avoid mistakes. But if it's very straightforward I may do it myself. Wonder if you can post some tutorial regarding how to fill it online. Thanks!

Re: Step by Step - Arrival in Portugal
 

Good morning everyone!

< snipped >

Re avoiding becoming tax PT tax resident in 2017, you should then avoid living at a main residence in Portugal on 31st December 2017. If your main residence is still elsewhere in the world on that date (and you could prove that if queried) you shouldn't have a problem, but maybe best left until 2018 if you can. Basically, to the best of my knowledge, one becomes tax resident in PT if more than 6 months of a PT tax year are spent in PT or one has a residence in PT that could be considered their main residence on 31st December of any tax year.

Re from what date one declares income for PT tax, I believe you declare from the beginning of the tax year in which you became resident (1st Jan) regardless of whether you were actually resident at the start of the year, but I will know more in a week or so after I have met with our accountant.

Ok, hope this helps too.

Re: Step by Step - Arrival in Portugal
 

Has anybody had to do the first few steps whilst still in an air bnb/alojamento local? I don't know how long it will take me to find & purchase a house, so it's very likely that I'll still be in the alojamento local when I need to get the residency. Is a confirmation letter from the owner enough as proof of address, as obviously won't have bills with my name on.

Many thanks

Sarah

Re: Step by Step - Arrival in Portugal
 

AliceCaroline's link above is the tutorial I used, for some reason snipped from my previous post. As I said, slightly out of date as it refers to paper applications as well as online, but I'm sure I read that only online applications are accepted since last Summer.

Re: Step by Step - Arrival in Portugal
 

Slightly off the topic, I always have some confusion about these 2 requirement of tax resident，does that mean if you can be in your permanent residence on 31 Dec every year, you don't really have to physically stay in Portugal for more than 183 days to qualify as tax resident?

Re: Step by Step - Arrival in Portugal
 

Exactly if on the 31st December your "principle residence" is in Portugal is in a condition that what lead the fiscal authorities to believe it is your home you do not need to be there 183 for fiscal residency
http://info.portaldasfinancas.gov.pt...System_CEF.pdf

Page 50 of the pdf explains it all - it is in english

Re: Step by Step - Arrival in Portugal
 

It's not like a census (ie where were you on 31st December?) - there is a little more to it, described here.

Remember that just because you can claim to have tax residence (or Portugal can claim you have tax residence) in Portugal under Portuguese rules, it doesn't mean that other countries can't also claim you as tax resident (or domiciled) in their countries too.

Re: Step by Step - Arrival in Portugal
 

Hi guys, very interesting re tax residence status. Just to get back to my earlier question though :) : has anybody done the residency registration whilst still in an alojamento local/airBnB? What did you need in terms of paperwork?

Thanks

Sarah

Re: Step by Step - Arrival in Portugal
 

AFAIK, an AL holiday letting is supposed to be for no longer than approximately 30 days - after that it's supposed to be a 'normal' longer term letting, for which the rental contract is registered with the tax authorities etc (thus giving you 'proof' of address). Most immigrants will, I imagine, try to get accommodation that is slightly more long term in nature than a holiday rental even if their plans are uncertain so your situation may be unusual but shouldn't prevent a successful application/notification of residency. Could you use the address of an advogado/a which might also avoid problems with delivery of any mailed correspondence?

Re: Step by Step - Arrival in Portugal
 

I think you need to simplify the question & ask if anyone has obtained their first 5 year residencia whilst staying in a rental?

And the answer to that question is yes. In our case they just put the rental address on the document & after we'd bought our own house we just went back there & had them change the address & reissue a new document with the new address.

If I remember correctly, it took about 20 minutes.

Re: Step by Step - Arrival in Portugal
 

Thank you both, that's reassuring :)

Re: Step by Step - Arrival in Portugal
 

We met with our accountant today. She advised that a new resident with NHR tax status will declare their income from 1 January to 31 December of the year in which they became resident, regardless of the exact date they became resident. However, if a new resident does not have NHR tax status, they will declare their income only from the date on which they became resident. This is the answer she received from Finanças/AT.

Re: Step by Step - Arrival in Portugal
 

Thank you for this Mac and Mabel.
I think we have now pretty much decided to move over in the January not the November, just so that we don't get involved in the 2017 tax year.
For the sake of a few weeks we might as well wait.

Re: Step by Step - Arrival in Portugal
 

Mac and Mabel, I've just seen your post #12 and found it very helpful.
It looks like Portugal has a good combination of climate, cost of living, and friendliness for retirees and so I've recently been finding out about the country.
So the details you have given should prove very useful to others who are thinking of moving there.
I've just become aware of the NHR system, but the information I've seen seems to be a little uncertain (maybe because the situation has changed since it was introduced).
So to hear from somebody who has just gone through the process is reassuring.
Would it be possible for you to post some more information about the NHR process, with, for example, what information you needed for the online application.
Thanks again for such a useful post.

Re: Step by Step - Arrival in Portugal
 

The NHR process is well-documented on various threads so a summary :

1. You need a Portuguese fiscal number and an address

2.You register on the Portuguese Tax Authorities website :https://www.portaldasfinancas.gov.pt/pt/home.action

3. When registered they will send to your home address a confirmation with a password

4. You go to the section : https://www.portaldasfinancas.gov.pt...action?pai=154

Headed up "Cidadaos , Entregar "

Scroll down to "pedido" - Inscriçao de residente nao habitual

When you click on it you will be asked for your Fiscal Number and your password
Follow it from there.

Re: Step by Step - Arrival in Portugal
 

Hi I would still like to find a English speaking accountant whose charge is reasonable to discuss about the tax planning in the view of applying NHR, any recommendation would be much appreciated. If you are happy with yours please pm me. Ideally based in Lisbon area.

thanks!

Re: Step by Step - Arrival in Portugal
 

Hi Loafing Along, thanks for the extra information, which will be useful if I decide to move to Portugal.
However, when I did a previous search, one web page said that during the application, you had to input your tax returns for the previous five years. If that type of information is necessary, then I thought that there might be a lot of other detailed information, not necessarily to hand, that would also be asked for.
That's why I asked about the specific information that needed to be input for the application.

Re: Step by Step - Arrival in Portugal
 

No did not have to do that - it was a simple form with a declaration to tick about previous residency and country and origin.
Answered back ( on the same web page ) in 48 hours

The whole process was simplified and made web-based last July, maybe you have been reading pre July 2016 information

Re: Step by Step - Arrival in Portugal
 

Ditto that. We applied September 2016 and had to do nothing more than is contained within the guidelines issued by Finanças/AT that is linked from post #11. This is slightly out of date as it still refers to the option of paper applications whereas only applications vis the online portal are accepted as of July 2016, but all other details are still current afaik.

Re: Step by Step - Arrival in Portugal
 

Loafing Along, and Mac and Mabel
Many thanks for your replies - that information is very reassuring.

It seems so simple that I wonder if anyone could be rejected for the scheme.
Is it just a tick box process, as the Portuguese government are very eager to get as many people onto the scheme as possible?

I went back and looked to see where the information about 5 years of tax returns came from, and judging by the website address, it was a Portuguese lawyer or accountant.

Thanks again for such positive information.

Arrival in Portugal - where will we be deemed resident?
 

Can someone comment on this tax/residency question?

1. Having purchased a car on May 14 this year, we intend arriving in Portugal on May 15 next year so that we will avoid import duty.
2. I believe that our period of PT residency will hence commence on May 15 next year, being the first day of our arrival.
3. We will, though, leave the UK on April 5th, so we will not be UK residents in the 2018/19 tax year. We will have no permanent UK residence. We will perhaps just tour around Europe, spending time and as little money as we can...
4. So what will our residency status be between 6 April and 14 May? To whom will taxes be due?

This is not an idle question, as there are tax implications for us, and I can't believe that we would have no residency status during that gap. The car is special to me, by the way, and rare in Portugal, so please don't suggest leaving it behind! Any thoughts much appreciated!

Re: Arrival in Portugal - where will we be deemed resident?
 

I think you might be confusing residency with tax residency, they are not the same thing. When you arrive in Portugal you will have a 3-month visa, like any EU citizen. After the 3 months you should apply for residency from the local Camara - to achieve this you must have a permanent address and be able to show you will not be a burden on the state.

Tax residency is different, once you spend more than 6 months in Portugal, you will be liable to submit a tax return to the Portuguese IRS. This will levy tax on your worldwide income and assets, but thare are some allowances, etc. You need to take advice on this - the tax tear runs Dec-Dec not Apr-Mar like the UK, so there are some games you can play.....

If you intend NOT being tax resident in the UK during the next financial year, AIUI you need to declare that to the Inland Revenue. It was suggested to me that you will then need to stay away from the UK for the next year, save maybe a 2-week holiday .... any more and it might be decided that you are still a UK tax resident.

Good luck.

Re: Arrival in Portugal - where will we be deemed resident?
 

Thanks, Macliam - I am generally aware of these issues, and it is the tax residency position that exercises me. Our plan will to become tax resident and make use of the NHR status once we are able to do so - having gained our residency. So: our residency will start on 15 May - the question in my mind is whether our tax residency will also start on 15 May, or will apply for the full year - from 1 January.

I believe the issue of UK tax residency is far more complex than you suggest, because we can find ourselves automatic UK tax residents if, for example, we spend 90 days in a UK property, of which 30 days are in the year in question. So, 30 days in the UK next year - and that's it! The number of days one can spend in the UK depend upon the UK Statutory Residents Test, and the number of ties - this is how the HMRC put it: https://www.gov.uk/government/upload...nal_078500.pdf

So, in a nutshell, we don't want HMRC to (for example) say we are UK residents but on holiday during the gap between 6 April and 15 May.

We certainly need good advice on this, though of course other forum contributors might have encountered similar situations.

Re: Arrival in Portugal - where will we be deemed resident?
 

Contact eurofinesco (I have no involvement with them) - I was very impressed with Dennis Swing Greene's knowledge of the Portuguese system and matters affecting UK expats generally. I seem to recall you had contacted them already - I'd sugggest you ask specifically about the timings for leaving the UK/declaring in Portugal.

Re: Step by Step - Arrival in Portugal
 

Thanks, macliam. I did contact them, and the receptionist passed my message onto the MD. But that's the last I heard......

Re: Step by Step - Arrival in Portugal
 

Worth chasing it up - doesn't sound like Dennis to me, he spent quite a while talking to me at a (free) tax seminar in Ourique, even though it was unlikely I'd have any work for him.

Re: Step by Step - Arrival in Portugal
 

Hi Sarah,

I've recently done all the quest with only having AirBnb rental for a month.
Got my Residence Cert and NHR status now. (took me less then 2 weeks)

It will depend on your local Junta de Fraguesia (local parish) if they issue a proof of address straight away or will ask you for some more proof.
Here in Setubal they were very pleasant and I had no problem to get one, then it's only doc you need in Camara Municipal (Local Council) to get a Res. Cert.

The step by step instruction was very helpful though. Thank you guys!