British Expats

British Expats (https://britishexpats.com/forum/)
-   Portugal (https://britishexpats.com/forum/portugal-89/)
-   -   Step by Step - Arrival in Portugal (https://britishexpats.com/forum/portugal-89/step-step-arrival-portugal-892767/)

Pilou Aug 20th 2017 1:03 pm

Re: Step by Step - Arrival in Portugal
 

Originally Posted by Ukkram (Post 12320438)
As I said, it gets complicated. If the DTA states that PT has sole rights to tax you on your foreign earnings then the NHR status will be void and you will pay the same tax as locals.

Be careful: this does not count for private pensions.
Most DTA's concerning Private pensions:
The country of residency has the sole right to tax you, BUT under the NHR Portugal won't tax you.

Your remark counts for another type of income like capital gain on shares.

qianh Aug 21st 2017 10:10 am

Re: Step by Step - Arrival in Portugal
 
Hi I am just wondering if I am tax exempt in this situation - I will work abroad for less than 183 days and my salary, according to the rule of that country is tax exempted. If I get NHR status, does that mean I don't need to pay tax in pt as well. The work is of NHR category. Thanks!

Diddion Aug 21st 2017 11:18 am

Re: Step by Step - Arrival in Portugal
 

Originally Posted by qianh (Post 12321199)
Hi I am just wondering if I am tax exempt in this situation - I will work abroad for less than 183 days and my salary, according to the rule of that country is tax exempted. If I get NHR status, does that mean I don't need to pay tax in pt as well. The work is of NHR category. Thanks!

I assume that your earnings will be regarded as non-Portuguese sourced. Bear in mind that you cannot apply for NHR if you have been a Portuguese resident in any of the previous five years. So where were you resident in the year ending December 2018 and the four prior years?

If that hurdle is ok then you also need to be absolutely sure that you will not be tax resident in that other country; in the UK, for example, there is a range of tests (ties) which mean that you could be regarded as a UK tax resident on the basis of presence in the UK for considerably less than half a year.

qianh Aug 21st 2017 11:48 am

Re: Step by Step - Arrival in Portugal
 

Originally Posted by Diddion (Post 12321234)
I assume that your earnings will be regarded as non-Portuguese sourced. Bear in mind that you cannot apply for NHR if you have been a Portuguese resident in any of the previous five years. So where were you resident in the year ending December 2018 and the four prior years?

If that hurdle is ok then you also need to be absolutely sure that you will not be tax resident in that other country; in the UK, for example, there is a range of tests (ties) which mean that you could be regarded as a UK tax resident on the basis of presence in the UK for considerably less than half a year.

Hi Diddion, thanks for your reply. Actually I am UK resident at the moment, you reminded me that UK situation can be a bit complicated. Even next year I work abroad (China) for less than 183 days and stay in PT for the rest of the year and have NHR status, because my husband is still in UK so I would still be considered as UK tax resident!

Diddion Aug 21st 2017 12:14 pm

Re: Step by Step - Arrival in Portugal
 
Yes, it can be a problem! This is the source material:

https://www.gov.uk/government/upload...nal_078500.pdf

Diddion Aug 21st 2017 12:44 pm

Re: Step by Step - Arrival in Portugal
 

Originally Posted by qianh (Post 12321257)
because my husband is still in UK so I would still be considered as UK tax resident!

I have just re-read your post, and it seems to me that having a UK resident spouse would simply count as one of the ties in the statutary residence test.
If I am right, you could still qualify as non-resident from the UK perspective (but please carefully check this point out for yourself!), depending on what other ties you have and whether or not you have a UK property.

qianh Aug 21st 2017 5:10 pm

Re: Step by Step - Arrival in Portugal
 

Originally Posted by Diddion (Post 12321295)
I have just re-read your post, and it seems to me that having a UK resident spouse would simply count as one of the ties in the statutary residence test.
If I am right, you could still qualify as non-resident from the UK perspective (but please carefully check this point out for yourself!), depending on what other ties you have and whether or not you have a UK property.

Thanks again for the reply. Yes I need to look into this in detail!

jakuk Sep 19th 2017 9:45 am

Re: Step by Step - Arrival in Portugal
 
Hi All , Have just discovered this board , found some very interesting stuff.thank you.
My situation is slightly different and would welcome any advice,

I left UK 10 Years ago , and embarked on my travels, I spend half the year in Asia and half in Europe.

I do not have any property in either , but my Partner, has a house in Greece, which I use as my main mail contact address.

As I have been travelling I have not completed tax returns in any countries.

I have now been advised that it may be wise to apply for the NHR Programme.

any one got any views on how best to approach it.

Pilou Sep 20th 2017 9:14 pm

Re: Step by Step - Arrival in Portugal
 
The timing for me is still difficult.
We leave Spain at the end of october and have rented a house for 14 weeks in Portugal. During this period we will try to buy a house and start the procedure to become a resident and apply for the RNH.
When we will officially emigrate at the end of october, our spanish health insurance will stop. But I don't want to drive to Portugal without a health insurance. Too risky: an accident can happen.

I understand that as soon as we become resident we can join the national health system in Portugal. But what about the days/ weeks that we are no longer resident in the country we left (Spain) and not yet resident in Portugal.

Any advice?

RichardHenshall Sep 20th 2017 9:43 pm

Re: Step by Step - Arrival in Portugal
 
IANAL but I would assume you remain a resident of Spain(?) until you become a resident of Portugal. Do you not remain a tourist or similar (covered by an EHIC card and/or travel insurance) in the mean time?

The requirement to register as a resident is triggered after 90 days/3 months and you have 30 days to complete formalities. However if it is your intention to become a resident there is no reason why you cannot register immediately upon arrival if you want to reduce the period of uncertainty.

AliceCaroline Sep 20th 2017 10:32 pm

Re: Step by Step - Arrival in Portugal
 

Originally Posted by RichardHenshall (Post 12342814)
However if it is your intention to become a resident there is no reason why you cannot register immediately upon arrival if you want to reduce the period of uncertainty.

I think you are meant to wait for 3 months before applying. But I guess you could try and register before.

From the SEF portal....
"When can I apply?
Once the first three months of you entering the country are over, you have a period of 30 days during which you must apply for the Registration Certificate"

Portal SEF


This site clearly says you can't apply before 3 months...
"The deadline for registration may not be less than three months from the date of arrival."

http://www.eearegulations.co.uk/Citi...age/article_08

Pilou Sep 21st 2017 6:48 am

Re: Step by Step - Arrival in Portugal
 
The 3 months period as a "tourist" is more to oblige people to register after that period? Does this mean you cannot register before when you arrive in Portugal with the one and only reason to stay there forever?

But when leaving Spain our Spanish national health will stop. We will de-register officially in Spain. When a car accident would happen, we have no health insurance. I tried to find a provision in the EU-law that the former health system would cover 3 months whithin the EU ........

When we first register in Portugal and apply for NHS in Portugal, we then need to drive back to Spain to de-register there. This is 2000 km with an old 55 kg doggie.....

GeniB Sep 21st 2017 7:08 am

Re: Step by Step - Arrival in Portugal
 
Just a word of caution..There's an email from the Online algarve news yesterday that warns of possible plans to scrap NHR next year.. Wise to check this out

Pilou Sep 21st 2017 7:15 am

Re: Step by Step - Arrival in Portugal
 

Originally Posted by GeniB (Post 12343013)
Just a word of caution..There's an email from the Online algarve news yesterday that warns of possible plans to scrap NHR next year.. Wise to check this out

If this is the case, housing prices wil drop in the Algarve/ Portugal. Prices of houses are more expensive than on the Spanish costas. The reason of these high prices is the NHR.

Strange that the government last week was talking about a new tax on pensions next year for the NHR and now is talking about ending this tax rule .....

Pilou Sep 21st 2017 7:20 am

Re: Step by Step - Arrival in Portugal
 

Originally Posted by AliceCaroline (Post 12342852)
I think you are meant to wait for 3 months before applying. But I guess you could try and register before.

From the SEF portal....
"When can I apply?
Once the first three months of you entering the country are over, you have a period of 30 days during which you must apply for the Registration Certificate"

Portal SEF


This site clearly says you can't apply before 3 months...
"The deadline for registration may not be less than three months from the date of arrival."

DIRECTIVE 2004/38/EC - Article 8 - Administrative formalities for Union citizens - EEA Regulations 2017

This is the answer: The deadline for registration may not be less than three months from the date of arrival. Art 8,2 of the EEA regulations.
So one can register as of day 1.


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