Engine tax in Portugal

[Portugeezer]

Can anyone confirm one way or another whether "Engine tax" on a British registered boat is payable in Portugal. I believe that a foreign reg´d boat is legally allowed to remain here for 183 days. I assume that is 183 days per year, consecutive or otherwise. I´ve heard that if the boat leaves the country and returns the next day that this avoids the tax issue but I´ve also heard that customs leave you alone for 3 yrs then hit you with a fine for non-payment. The latter sounds far more likely. Seeing as the tax is approx. €2.75 per kw, I´d like to know for definite what the situation is. For obvious reasons I don´t want to ask customs as I think I know what answer they´ll give me.

 

[Graham376]

There are two taxes, light dues and circulation tax. For light dues which everyone has to pay regardless of time stay, foreign boats are charged the ocean rate which last year was €70 for 6 months (used to be 12). The circulation tax should also be paid if in country >183 days so many hop along the coast to Spain for a few days at the end of June to start the clock again. If circulation tax is paid then the light dues payment lasts 12 months instead of 6. For our boat, paying circulation tax would cost about the same as another 6 months light dues, so we've never bothered paying and had no problems in 16 years. If inspected by Policia Maritima, they're only interested in light dues, registration, insurance and passports.

Light dues are on rolling 6 months whereas circulation tax year starts again 1st January.

 

[25931]

There are two taxes, light dues and circulation tax. For light dues which everyone has to pay regardless of time stay, foreign boats are charged the ocean rate which last year was €70 for 6 months (used to be 12). The circulation tax should also be paid if in country >183 days so many hop along the coast to Spain for a few days at the end of June to start the clock again. If circulation tax is paid then the light dues payment lasts 12 months instead of 6. For our boat, paying circulation tax would cost about the same as another 6 months light dues, so we've never bothered paying and had no problems in 16 years. If inspected by Policia Maritima, they're only interested in light dues, registration, insurance and passports.

Light dues are on rolling 6 months whereas circulation tax year starts again 1st January.

BUT this is Portugal so it is not unknown to have different rulings in adjacent capitanias.

 

[Portugeezer]

There are two taxes, light dues and circulation tax. For light dues which everyone has to pay regardless of time stay, foreign boats are charged the ocean rate which last year was €70 for 6 months (used to be 12). The circulation tax should also be paid if in country >183 days so many hop along the coast to Spain for a few days at the end of June to start the clock again. If circulation tax is paid then the light dues payment lasts 12 months instead of 6. For our boat, paying circulation tax would cost about the same as another 6 months light dues, so we've never bothered paying and had no problems in 16 years. If inspected by Policia Maritima, they're only interested in light dues, registration, insurance and passports.

Light dues are on rolling 6 months whereas circulation tax year starts again 1st January.

Thanks for your reply Graham,

That´s pretty much what I heard in the first scenario I mentioned. I just need reassuring that "popping along the coast to Spain for a few days" resets the clock. The circulation tax for the boat I´m looking to buy is circa €2,500 p/a so not to be sniffed at. The Maritime police don´t bother me, it´s the customs officials based in the marina. I doubt they would easily pass up the opportunity to collect such a sum of money and how would they know you´d been to Spain? When I first moved here, I heard a similar story about foreign cars staying here "just drive to Spain and get a petrol receipt and you´ll be fine". That is absolutely not the case. I know many people that have foreign cars here for almost 20 yrs and not a problem. They luckily just haven´t been caught yet. A bit difficult to hide a 50ft boat in the marina. I know from personal experience the tax authorities here are not to be messed with. They once froze my bank account without warning because I was late paying my social security. If what you are saying is a legal loophole then I´m all for it. Paying tax anywhere leaves a bad taste in my mouth.

 

[Graham376]

I know from personal experience the tax authorities here are not to be messed with. They once froze my bank account without warning because I was late paying my social security. If what you are saying is a legal loophole then I´m all for it. Paying tax anywhere leaves a bad taste in my mouth.

From what you say, it sounds like you're tax resident and marina based, in which case you need to be careful and check there haven't been any recent changes to tax law that I'm not aware of. As 25931 says above, interpretations and implementation can vary from one location to another, it often seems every jobsworth has his/her own ideas. Lagos Navigators site which had lots of good information seems to be down at the moment but other sites I've just Googled are still quoting the same rules.

 

[webcraft]

We haven't paid light dues and have been in Portugal for 16 months now.

If we go into a Capitania and offer to pay, will we just be asked for 6 months or for back taxes as well?

- W

 

[Graham376]

We haven't paid light dues and have been in Portugal for 16 months now.
If we go into a Capitania and offer to pay, will we just be asked for 6 months or for back taxes as well?
- W

We only pay once a year for six months, usually around May so we're covered for main season if inspected. Although the Faro Capitania staff know we're based there, they just turn a blind eye and have never requested back payments.

 

[Portugeezer]

From what you say, it sounds like you're tax resident and marina based, in which case you need to be careful and check there haven't been any recent changes to tax law that I'm not aware of. As 25931 says above, interpretations and implementation can vary from one location to another, it often seems every jobsworth has his/her own ideas. Lagos Navigators site which had lots of good information seems to be down at the moment but other sites I've just Googled are still quoting the same rules.

Thanks Graham,

As you say, rules seem to differ from one location to another which might well explain the varying stories. In monetary terms, a trip to Spain would be about equal to paying the circulation tax. However that option at least would provide a vast amount of pleasure whereas the other only pain. I shall continue my research.