bazzer70

I think I have read every post regarding NHR and am thoroughly confused...
If I describe my situation please will somebody cleverer (not difficult when it comes to taxes!) let me know if it’s worthwhile for me...
- retired early with teachers pension (circa £13000 p.a.)
- fairly substantial investments including cash and stocks and shares ISAs which earn me interest
- plan to sell my UK home before becoming a tax resident in Portugal (thereby making my investments even more substantial!)
- I plan to move in January bringing my car with which I want to keep
Thanks in anticipation
Baz

Ukkram

Government pensions are only taxable in the UK according to the DTA. Private pensions may be taxed by Portugal. With NHR status you will be exempt but the AT may want proof that you paid tax in the UK on it.

UK does not have withholding tax on Dividends and it may be taxed by Portugal. The DTA however caps the tax at 15% and the AT may want proof that you paid it in the UK.

The UK has withholding tax on interest and it is 20% but the DTA caps it at 10%. You would need to inform your banking or broker institutions that you are no longer UK resident for them to make the adjustment. PT will not tax you on this with or without NHR.

Capital Gains Tax on the sale of securities is a residency based tax so you will only be taxed by PT at a fixed rate of 28%. NHR will give you no relief. UK has no rights to this tax as per the DTA.

This is all I can help you with as I have done the above and still confused as I have had 2 PT accountants dump me in frustration and now I must look for another.

ricko

I believe this changed about a year ago.
There is now no withholding tax for bank interest.

Ukkram

You are correct. I looked at an old website. NHR may relieve you from any tax.

You notice that I keep saying "may" and that is because the NHR system is so obscure that even PwC, BlevansFranks and other large co's have differing interpretations on it.

Ronj

Ukkram

If you already have a NIF number then you are already registered at Financas. You just need to check if your address is correct. I think you had until end March to apply for NHR status but I don't know when you arrived here. Perhaps someone else will correct me but I think if you are not yet liable for tax 2017 then you have till end March 2019.
Sent you a PM.

Loafing Along

This the summary document from the Portuguese Tax Authorities web site
http://info.portaldasfinancas.gov.pt...IRS_RNH_EN.pdf

Briefly with your NIF if you are registered with Finanzas.
Everything about NHR now done online.
Depending on your linguistic skills you can do it yourself or get a portuguese-speaker to sit with and follow the registration steps. After initial registration with Tax authorities online takes about a week to receive a password to access site at your Portuguese home address
Armed with your NIF and Password you can search for NHR section, very simple online form. Online application normally takes about 48 hours to get a respond in a form of a pdf document which you can download.
You have missed the March 2018 deadline for the 2017 fiscal year, so you should apply for 2018.
Re-UK use Government Gateway to get the right info but you will probably need to fill out and return a Double taxation Relief Form : https://www.gov.uk/government/public...-dt-individual

Ronj

Red Eric

Just to add to the above :
Your "tax-free status" with the UK has nothing to do with you acquiring NHR status in Portugal but results from your not being resident in the UK. Whether or not you apply for NHR, if you're resident in Portugal, you inform the UK tax authorities and they stop taxing any of your UK income which doesn't qualify as UK taxable under the UK / Portugal dual taxation agreement.

AliceCaroline

Your situation is very similar to ours, we also arrived in January of this year.

As I understand it if you arrive in one calendar year you have until March 31st of the following year to apply for NHR.

In the same way as you file your first tax return in the Spring of the year following your arrival.

If it is the March of the year you arrive we have missed the deadline, so I hope I'm right.

Loafing Along

Exactly - arrive Jan 2018 have until March 2019

riv

As I recall , the phrase ' withholding tax' first came to public attention when John Prescott garbled his way through a brief in Parliament using the phrase and obviously completely out of his depth..

Since then one has not seen it much.

But I would be very pleased to learn, if anyone knows, what is the difference between a 'withholding tax' and a 'tax' ?

If [ I am just guessing here ] you say it is a tax which the Government withholds at source, so the taxpayer never sees the money, then would not simple income tax ( for those who PAYE ) and VAT , and airport departure tax also qualify as 'withholding taxes' ?

I am not trying to be 'funny' - I would really like to know what the word 'withholding' ads to the word 'tax' .

Ukkram

VAT is tax added to the sale price of goods and services sold that you pay for and the seller pays to the IRS.

Withholding Tax from dividends or interest is tax deducted on your behalf for monies due to you. The agent or company or institute withholds the amount and pays it to the IRS for you.

This is the difference between the two.

Furfanus Postumus

Hi all,
Have been following the site for a while and have now taken the plunge and signed-up! I am a UK resident about to buy a house in Portugal, with the intention thereafter of selling my UK residence and then moving to Portugal under the NHR regime, before 31 December 2018, therefore with a registration deadline of 31 March 2019. It seems a shame that I will gain no benefit from my first year of NHR as I assume I will be deemed UK resident for 2018/19 (year ended 5 April 2019), so fully liable to UK tax for all income received during that period - and to Portuguese tax also, which hopefully will be zero (my income is UK rent on real estate and dividends from shares/companies). If you own a house in Portugal on 31 December which appears to be your main residence, you are deemed tax resident in Portugal for that tax year then ended. I have found the ideal property so I need to buy it now, or risk losing it, rather than waiting until 1 Jan 2019, which might be an ideal date on which to start NHR to get the full 10 years. In the first UK tax year in which I will be non-UK resident (2019/20) I intend to sell all my remaining UK real estate and invest proceeds in shares, the dividends from which should be free of PT tax under NHR, and suffer no UK withholding tax at present (thank you George Osborne). I suspect that if Corbyn wins power he would re-introduce a witholding tax on UK dividends, but it seems that under the Double Tax treaty anything over 15% would be reclaimable by a Portuguese resident. Whilst profit on sale of UK shares is taxable in PT, profit on sale of UK real estate is not, for NHR persons. Am I correct? Sorry for the long and rather aimless ramble, we got a question in the end.

Ukkram

Yes. You are correct in your assumptions. CGT is only payable to the country of residence according to the tax treaty. This is regardless of your NHR status.

Dividends and interest earned will be exempt.

Fanus Postimus is an Afrikaans name so I do not know your connection to the UK. Please paragraph your posts as I get a brain ach just looking at it.