bons

Does a UK pensioner need a NHR number?

Red Eric

Not sure what you mean by an NHR number but when you become resident, you will already have obtained a NIF and when you have notified the tax authority that you're resident here, and signed up for online access to their web portal, you'll be able to apply for NHR status from there.

It's entirely optional but it may confer significant benefits for a 10 year period, depending on your circumstances now and in future. You can still opt to be taxed under the general regime in any of those years if it's of more benefit, even if you've been granted NHR status - you'd need to do some sums to find out which is better.

Loafing Along

There is no such thing as an NHR number. As a resident in Portugal you do need a fiscal number which you get by applying at your local tax office . NHR is a tax status/allowance which you can apply for if you meet certain criteria , fiscally resident, not been registered for it in the last five years etc. It is beneficial for a period of ten years.

bons

Am I right in thinking that this NHR has to be obtained before 3 months after gaining residency has expired. Sorry if I'm asking questions that have probably been asked before.

Loafing Along

It should be applied for by the end of March in the year following your arrival / registration as a resident.

bons

How much does it cost to obtain it? Thanks.

Rambling archer

You have the wrong end of the stick Bons. As said above the NHR is a tax status - like self-employed, salaried, not-habitually resident in Portugal for previous 5 years, resident etc etc). There is no charge. All you do is fill in details on the relevant page of the Portal de Finanças tax office site to claim the status.
What you do need to do as UK pensioner is apply to the Pensions Office in Newcastle for an S1 which proves to Portugal that you have the UK state pension so that when you have your Utente Number from your local Portuguese Health Centre, you can take your S1 to the Social Security office so that you get a Social Security number as a Pensioner, and they can apply to UK for financial cover of your health needs.

see the following
https://www.gov.uk/world/living-in-portugal
which leads to
https://www.gov.uk/guidance/healthca...luding-madeira - which includes the following ...
<You may be entitled to state healthcare paid for by the UK if you’re a Portuguese resident and receive a UK State Pension.>

Then when all that is done you can apply to UK (instructions come with your S1 letter) for the EHIC which is special for UK pensioners living in EU, to cover their health needs when travelling within Europe. You are also eligible for care in the UK under NHS as a UK pensioner if need arises.
PS your UK state pension comes to you in Portugal tax-free if you were Resident before the end of 2020 (with only tax to pay on it in the UK if you are over the UK tax-free limit) - the whole point of the NHR is to give you low rates of tax on income coming in from abroad. Those only registering for Residency after end 2020 will pay 10% on their pensions incomes.

bons

We obtained residency in 2020, so do we need to get the NHR? Sorry, I find this confusing.

bons

If one is a pnesioner and the other working in Portugal do we need NHR? Sorry to ask again, but we are going to make a decision before the end of this month. Many thanks.

Red Eric

It is not a question of whether you need NHR. It is on offer if you wish to apply for it.

Nobody can tell you for sure whether it will be more beneficial for either or both of you to declare under NHR than under the general regime without knowing a great deal more than you're likely to want to reveal on here. However it is likely that it would be if you have even moderate passive income from abroad, or if you are eligible as an earner in Portugal for the highly qualified professional concession. If you do not apply for it, you will definitely be liable for PT tax at normal rates on all income, from all sources worldwide, except that which, under the applicable Double Taxation Agreement, can only be taxed in the source country. The general rule of thumb, though, is that income is taxed in the country of residence. And yes, UK State Pensions not protected by NHR are liable to PT tax if they are above the lower threshold for tax, either in themselves or combined with income from other sources.

However - as I already mentioned above - you are not "locked in" to NHR treatment just because you have NHR status. You may choose to be taxed under the general tax regime if you wish in any given year. This gives you the space you need to apply for NHR status before your application deadline expires and to decide later whether or not it's advantageous to you when you make your tax declarations - a no lose situation.

bons

Thanks all. I've sorted it out..... I think!!!!

Shanorme

The OH and I had to take tax advice about a few things in Portugal. Anyway, the firm we took advice from (euroFinesco) sent us a rather useful .pdf booklet on taxation in Portugal. Pm me with your email address, if you would like me to email it to you.

Loafing Along

The Portuguese tax Authorities have an excellent guide in english on their site as well :
https://info.portaldasfinancas.gov.p...ax-system.aspx

bons

Thanks, I've save the link.

bons

Thanks, I've pm'd you.