Diddion

In this case I believe the issue is at the American end because, although the NHR program is available to US citizens, the American IRS will continue to tax them if overseas resident - hence no actual benefits. Those with sufficient capital can still take advantage of the other elements of the Golden Visa program. There is more about this here: the-washington-posts-financial-guide-to-retire-abroad/.

I think this is linked with the US FATCA rules (Forign Account Tax Compliance Act) with its onerous restrictions. Worth Googling this if you are non-American and are feeling less than kind about your own tax system - see how bad it can really be.

Red Eric

Is Madonna retiring?

Sri Pete

I am engaged to marry a Portuguese woman, make frequent visits to her home in the Porto area (but never longer than 3 months at a time or more than 183 days in any year), and plan to move full-time to Portugal at some point in the future at which time I expect to apply for NHR status (assuming it still exists). I believe I understand well the difference between residency and tax residency but I have a question that I am finding it very hard to answer because there seems to be lots of contradictory information about. Some sources state that to be eligible for NHR status, one must not have been a tax resident of Portugal in any of the prior five years. Other sources say that one must not have been a resident of Portugal in any of the prior five years. Can someone please tell me definitively which applies? Thank you.

Loafing Along

This is the guide from the Portuguese Tax authorities you can check definitions here but my understanding is not been resident . Quote from the guide :
"Has not been deemed resident on Portuguese territory during the five years prior
to the year pretended to be taxed as a non-regular resident."

Jonny22

The ‘pretended’ bit flummoxed me. But all is now clear. The Portuguese verb Pretender is a bit of a false friend in English. Although it can mean pretend in English in certain circumstances, in this case it doesn’t. The real meaning is more ‘intended, sought, wanted or requested’. Now it makes sense.

RichardHenshall

I suspect that many applicants for the NHR scheme wish that it really did mean that they could pretend to be taxed.

Ninmurai

Hi folks, new Brit in Portugal here! Looking forward to meeting some of you over time :-)

I submitted the amazingly simplistic online application for NHR on Friday around 3pm, and saw my status changed from pending to "deferido" - 'deferred' yesterday (Saturday), with the extra message '888 - SEM ATIVIDADE ELEVADO VALOR ACRESCENTADO' (No valued added activity).

Is it an outright rejection? Or does it really mean deferred and that I should just be patient?

The wording of the website says a decision will be reached in 48hrs, which has passed, but given nearly all of it has been outside standard office hours, I am still hoping it can change by Tuesday close of business.

Prior to registering residence last week, I had not lived in Portugal before, so I definitely meet the requirements of NHR.

Thanks in advance to anyone who can help!

Pilou

I can imagine that the 48 hours counts for working days only.
The message means maybe that you are not in the category employment with 20% tax.
Hope you will inform us when you have the confirmation!

Loafing Along

"Deferido" means it is approved. There should be a pdf which you can download which shows the NHR as being "activo" .
Under the "deferido" line should be the active dates - 2017 to 2026 in your case.
The economic activity classification should read " 888 outras actividades"

Loafing Along

deferido adjective, masculine
accepted
less common:
acceded
deferir algo a algo/alguém verb
grant sth. to sb./sth. v

Ninmurai

Wow! Lightning fast responses - thank you everyone. It sounds like good news then, and to be doubly sure I'll wait until Tuesday anyway, but I think I can sleep easier tonight!

It is interesting then that the decision was granted on a Saturday, although if it's totally electronic then it doesn't surprise me.

Hopefully you will all hear from me in the near future. I'm a Chartered Engineer, structural engineer by profession and I just applied to Ordem dos Engenheiros last week so if any of you are buying a house and need a professional opinion (in English) on structural adequacy, I'll be glad to help out.

I'm also a iOS and web developer, so if any of you want an app or web page done, I'm your man!

Sri Pete

Thank you, Loafing Along, for your response to my enquiry at #123. Makes my situation very clear.

In posting #121, Diddion states that, while NHR is available to Americans, it does not avail them anything. I do not want to start a big discussion about this because the matter is so complicated but, I believe the claim is not true. I should perhaps clarify that this affects me because, while I am a native-born Brit and hold a British passport, I am also a "naturalized" American citizen, a U.S. tax-payer and also have a U.S. passport. I have lived in the U.S. almost all my adult life and, when I migrate to Portugal, I will maintain my U.S. citizenship and continue paying taxes there. It may be that NHR does not typically benefit U.S. tax-payers as much as most but, since Portugal has a tax convention with the U.S. (so one can avoid double taxation), I do fully expect it to benefit me. Could there be something I am missing here? Does anyone know any Americans living in Portugal under NHR?

Ukkram

Unfortunately the US has the most draconian tax laws and you will have to live with it. Wherever in the world you live and work you will pay tax to the the US to pay for the war costs.

Diddion

Hmm, Sri Pete, I still believe I am right on this one, though am always willing to be corrected. The point is that the US has given itself the right to tax US individuals on their worldwide income and gains, which are reported to the American IRS under their FATCA rules. International institutions make such reports, because they can face huge financial penalties in the States if they fail to do so.

Sunseeker1st

My husband is American and I am British. Our pensions are deposited here through a bank in Ireland. My husband pays no US tax but I pay 20%, However, if I lived in the UK I would not pay US tax. My sister living in Germany did not have hers taxed but her German husband does. We do not file US tax returns as our pensions are small having only worked there in the 60s and 70s.

This may or may not help ...

https://www.forbes.com/sites/janetno.../#6fef4d743799