Neptuno

I saw an interesting post on another forum
The poster lives on the border of Spain / Portugal
The house is in Portugal, but he has a " business" apartment in Spain, works there,spends all his time there kids go to school there.
He pays his taxes in Portugal which are much lower
Has he got the best of both worlds?

EsuriJohn

no since his center of economic interest is in SPAIN by law he should pay his taxes in Spain.

EMR

If he is resident in Portugal then he should be completing a Portuguese tax return declaring his income from Spain and if there is a dual tax agreement between the two receive a credit for any tax paid in Spain against any Portuguese tax liability.
It does sound like he should initially be paying tax in Spain as his income is derived there.

Neptuno

It's something to do with the Portuguese habitual non residency program apparently, resulting in very little tax paid in Portugal
The reaction to his post is much the same as on here.

EMR

He can have NHR status in Portugal but that would not exclude him from paying tax in Spain.
To do so the Spanish would have to agree that his qualifying income under the Portuguese NHR scheme earned in Spain could be " exported " tax free from Spain to Portugal.
Can anyone actually see that happening ??
Earned income is very different from Pensions.