Double taxation for Portugal?

Hi Rugbyfan. Good luck with the process! It isn't really a permit at this stage in the game (at least until/if Brexit!), although if you are here for more than three months, you are supposed to register with the borders agency here via the Câmara/GNR (local authority/Police). Actual residency and tax residency both work on timings. If you are in Portugal for 183 days or more each year, then you need to register in Portugal, both with the Câmara/GNR (local authority/Police) and as a tax resident. The non-habitual (or "extraordinary") tax residency gives some incentives and benefits for foreign UK taxpayers. There is some really good information on the UK Govenment website: (www.gov.uk/guidance/living-in-portugal). If and when you get to the stage that you cross the 183 day threshold, you can set up easily and cheaply and stop worrying (save an annual return) for ten years. There is lots of professional advice on the web and it is well worth having a search around on the rules and loopholes. The processes here can be horrific, but the country and its people are lovely and well worth any effort you have to make.

Hi to all. If you are splitting your time and are habitually resident do you apply for the one residency permit. I am slowly retiring over the next few years, so will eventually be a portugese tax payer.

If you live in Portugal for more than 183 days in any year, you are de-facto registered for tax purposes and should submit a tax return each year, showing your global income. There is favourable tax registration, Non-Habitual Residency, which gives some very attractive tax incentives for the first ten years of your residency. It is necessary to comply with the application formalities for this and I would recommend you take advice from one of the Anglo/Portuguese firms that advertise quite widely on the net for this purpose.

You have a few things to consider here Liz..Firstly if you become resident in Portugal you will be required to pay tax here .How that pans out with an income gained solely from the UK only your tax advisor can tell you. You can of course live in Portugal as a non resident,this would allow you 183 days per year in the country,then you wouldn't be obliged to pay any tax in Portugal.You would remain under the UK Tax umbrella.It's matter of which makes more fiscal sense to you..

Hi Liz,

You'll need to do some research on the type of double taxation treaties that may exist between the UK and Portugal. As you situation is quite unique, I suggest contacting a tax specialist who may be able to assist you furthur with the most up-to-date information.

You can read our Banking, Money and Taxes in Portugal page for background information. 

Regards

Shantalie