Portugal - Non Habitual Residents Tax Scheme

Avalon

Avalon

Well-Known Member
Joined
3 Sep 2001
Messages
206
Location
Lagos, Portugal
phaon.dnsdojo.net
The scheme is described here:

http://www.telegraph.co.uk/finance/personalfinance/special-reports/11519095/The-ultimate-pension-freedom-Retire-in-Portugal-and-reduce-your-tax.html

We are thinking of heading over to Portugal next year to enjoy the sun and take advantage of this scheme. If we understand it correctly, having established residence and been accepted for the scheme, we could receive pension (but not property) income from the UK tax free for up to 10 years. Of more relevance is the ability to withdraw lump sums from our pension pot without paying large amounts of tax. We would like to do this to pay off the interest only mortgage on our house in a few years. If we stayed in the UK we would end up paying 40% tax on most of it.

I don't see why we couldn't establish residence while living on a boat somewhere in the Algarve. Does anyone here have experience of doing this, or of this scheme generally?
 
Yes, I suppose we will need a shoreside address for the authorities but would a marina address not work? Last summer we spent a few months in the Paris marina and the marina address was OK for things like mobile phone contracts. If necessary, though, it would probably be worthwhile to rent a cheap place ashore.
 
Avalon said:
Yes, I suppose we will need a shoreside address for the authorities but would a marina address not work? Last summer we spent a few months in the Paris marina and the marina address was OK for things like mobile phone contracts. If necessary, though, it would probably be worthwhile to rent a cheap place ashore.
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Before committing you really need to get proper local advice. Paperwork in Portugal can be a nightmare so getting good advice and planning ahead will pay big benefits. There are plenty of expert advisers in the Algarve both Brits and Portuguese. A personal visit to a few should help in one understanding the system and two who may be the best adviser to use.
 
Ive been based in the UK since 2005 and my address has always been marinas. Ive had companies registered, mortgage, loans, credit card the lot. Took a bit of hassle in the beginning as i had to purposely get a load of utilities set up etc. But afterwards no one has known any difference. If you change your bank statement address to a Portugal marina one then thats a start to get other things in your name at a portugeuse address. You can always change your UK bank statement back etc to a UK address.
 
nauticalnomad said:
Ive been based in the UK since 2005 and my address has always been marinas. Ive had companies registered, mortgage, loans, credit card the lot. Took a bit of hassle in the beginning as i had to purposely get a load of utilities set up etc. But afterwards no one has known any difference. If you change your bank statement address to a Portugal marina one then thats a start to get other things in your name at a portugeuse address. You can always change your UK bank statement back etc to a UK address.
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Absolutely.

The OP should ignore all this silly advice to seek proper professional help given by those who are actually living in Portugal and who have personal experience in these matters. Simply change his bank account address to any Marina he fancies as the fella living in the UK says.

The rules are no different, I am sure; probably.
 
After three months berthed in Marina da Praia da Vitoria I established residence. A visit to the Freguesia office and 1 euro fee gave me a local certificate of residence with the marina's address and date of start. I just needed my marina paperwork as proof. The next afternoon I went to the Municipal office with this and my passport and they issued a Portuguese Certificate of Residence for EU citizens for 15 euro.
It took two afternoons as I could only pick up the first certificate after it had been officialy signed by the president of the freguesia and was available just before the office closed.
 
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Thanks, will certainly be getting professional advice - possibly Blevin Franks, PWC in Lisbon or an Algarve firm such as All Finance Matters in Tavira. I just wondered if anyone on here had actually done the NHR thing in Portugal and had any recommendations or advice to give.
 
Avalon said:
Thanks, will certainly be getting professional advice - possibly Blevin Franks, PWC in Lisbon or an Algarve firm such as All Finance Matters in Tavira. I just wondered if anyone on here had actually done the NHR thing in Portugal and had any recommendations or advice to give.
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Although I have had local residence there for years, I am careful to keep my UK residence and UK tax residence as losing it can lead to all sorts of problems in the future. You're going the right route by getting local advice as laws and tax implications in most European countries bear no resemblance whatsoever to the UK system.
 
GrahamM376 said:
Although I have had local residence there for years, I am careful to keep my UK residence and UK tax residence as losing it can lead to all sorts of problems in the future. You're going the right route by getting local advice as laws and tax implications in most European countries bear no resemblance whatsoever to the UK system.
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+1 like many others, I also work to ensure my UK status.

Be interesting to see what will happen to UK domiciles with Portuguese Residencia (who still hold a UK passport and a UK driving licence and use the NHS etc) if the UK leaves the EU. A minefield waiting to happen?
 
nauticalnomad said:
The EU isnt going let The UK leave.. No matter how much the people vote..
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In your dreams (and mine, as it happens). Article 50 of the EU treaty provides that "Any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements." Incidentally, I don't undeerstand your "much": people vote one way or t'other, or not at all. Once each.
 
nortada said:
If, right or wrong the UK votes to leave the EU, how do you think the EU will prevent it?
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Maybe they will organise some black UN helicopters in whisper mode to extraordinarily rendition all the Brexit leaders and replace them with zombie clone administrators. Nobody will notice the difference.
 
RAI said:
Maybe they will organise some black UN helicopters in whisper mode to extraordinarily rendition all the Brexit leaders and replace them with zombie clone administrators. Nobody will notice the difference.
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Wasn't aware that UN forces we under EU command and control. Moreover so far as I know, as yet, the EU doesn't have any assigned armed forces.

When/if they ever do, no doubt all 27 signatories will have to concur (27 red telephones and 27 red buttons) before they can be committed so this should make for an interesting quick reaction time. Probably measured in years rather than minutes.
 
They will just vote and you wont hear the real results of the outcome..
The farmer doesnt let the sheep choose which paddock they wish to graze in.
 
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