Re: Step by Step - Arrival in Portugal
but what is Increase in Wealth ? Capital Gains On looking closer at the document, it says, for all these incomes: are exempt if alternatively: a) They are taxed by the source State/nation, Does this not mean that they would have to be taxed in the UK to be exempt in Portugal? |
Re: Step by Step - Arrival in Portugal
Originally Posted by ricko
(Post 12369597)
Thanks for the clarification.
On looking closer at the document, it says, for all these incomes: are exempt if alternatively: a) They are taxed by the source State/nation, Does this not mean that they would have to be taxed in the UK to be exempt in Portugal? |
Re: Step by Step - Arrival in Portugal
Originally Posted by ricko
(Post 12369597)
Thanks for the clarification.
On looking closer at the document, it says, for all these incomes: are exempt if alternatively: a) They are taxed by the source State/nation, Does this not mean that they would have to be taxed in the UK to be exempt in Portugal? |
Re: Step by Step - Arrival in Portugal
are exempt if alternatively: a) They are taxed by the source State/nation, Does this not mean that they would have to be taxed in the UK to be exempt in Portugal? Check the phrasing because I believe the operative word is "could" but as a non-resident they should be taxed by the UK but will not be under double-taxation agreement. I cut and pasted the phrase from the document, so there was no "could" suggested. I think that's the snag. Normally Capital Gains are taxed by the country of residence only except for real estate where they're taxed first in the country where the property is located and then taxed by the country of residence, with any relevant Double Taxation Treaty dealing with any overlap. There were a few links in this part of the document. I suspect these gave qualifications and clarifications. However, all of the links went to documents that were only in Portuguese. |
Re: Step by Step - Arrival in Portugal
Originally Posted by ricko
(Post 12369619)
... However, all of the links went to documents that were only in Portuguese.
|
Re: Step by Step - Arrival in Portugal
DTA UK - Portugal. Article 13.4 States:
//4. Gains from the alienation of any property other than those mentioned in paragraphs (1) and (2), shall be taxable only in the Contracting State of which the alienator is a resident.// The word "property" mentioned here includes investment securities and is only taxable by Portugal. This made me think that the Capital Gains I make are exempt having NHR status. It is not and 28% flat rate is payable. The same rate as local citizens. So if you are a Category E taxpayer then NHR will not apply. I still don't get it. |
Re: Step by Step - Arrival in Portugal
So if you are a Category E taxpayer then NHR will not apply. I still don't get it. |
Re: Step by Step - Arrival in Portugal
Originally Posted by ricko
(Post 12370942)
If Category E (Capital Income), means Bank Interest and Company Dividends, then are you saying that you would pay tax in both the UK and Portugal?
|
Re: Step by Step - Arrival in Portugal
Originally Posted by ricko
(Post 12370942)
If Category E (Capital Income), means Bank Interest and Company Dividends, then are you saying that you would pay tax in both the UK and Portugal?
PT AT has billed me €11k for a gain I made when I switched from one company to another even though I have NHR status. This is because the DTA states that Capital Gains are taxed in the country of residence ie in PT. |
Re: Step by Step - Arrival in Portugal
UK Bank Interest and UK Company Dividends are not generally subject to any withholding tax for non-residents. Does this mean that 'UK-sourced' income of this kind is therefore taxed in Portugal, even with NHR?
|
Re: Step by Step - Arrival in Portugal
Originally Posted by RichardHenshall
(Post 12371011)
UK Bank Interest and UK Company Dividends are not generally subject to any withholding tax for non-residents. Does this mean that 'UK-sourced' income of this kind is therefore taxed in Portugal, even with NHR?
UK uses the RESIDENCE clause in the DTA as shown in post 156. So having NHR will not apply. |
Re: Step by Step - Arrival in Portugal
Originally Posted by Loafing Along
(Post 12253888)
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. To register at the tax authorities in order to obtain a password, can you remember how to do this online? I cannot find the right category. Or can I go to financas? Thanks |
Re: Step by Step - Arrival in Portugal
Originally Posted by Pilou
(Post 12397061)
Thanks a lot for your detailed info concerning of how to register for the RNH.
To register at the tax authorities in order to obtain a password, can you remember how to do this online? I cannot find the right category. Or can I go to financas? Thanks https://www.portaldasfinancas.gov.pt/pt/home.action Top line : Cidadaos - click At the top of new page "É a 1º vez ..... in small type in that box is "registrar me" in blue, click will lead you to the form to fill out |
Re: Step by Step - Arrival in Portugal
Originally Posted by Loafing Along
(Post 12397065)
This link :
https://www.portaldasfinancas.gov.pt/pt/home.action Top line : Cidadaos - click At the top of new page "É a 1º vez ..... in small type in that box is "registrar me" in blue, click will lead you to the form to fill out |
Re: Step by Step - Arrival in Portugal
Hello everyone and thanks for sharing your experience!
Just received my residency in Portugal, visited Financas to consult reg to NHR, but didn't get any answer. Visited 2 different lawyers and got different answers. Please let me know if you know anything about my question :) The financial situation is like this: 1. I have shares of one American company and get dividends every quarter. Will it be an exemption under NHR? 2. I am planning to sell these shares in the future but unsure about taxes also. Any ideas? |
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