New NHR Rules

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New NHR Rules


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  #1 (permalink)  
Old 30th June 2020, 01:47 PM
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Default New NHR Rules

Hope someone can help. I have 2 questions regarding taxation. I understand the NHR scheme has changed, and that incomers now pay 10% tax, but I would like to know if there is a personal allowance which is free of tax, and if so how much. The 2nd question regards the rebate granted against goods bought. How does it work and what is included? I realise that everyone is different but any pointers would be useful.
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Old 3rd July 2020, 10:32 PM
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Quote:
Originally Posted by amcinfrance View Post
Hope someone can help. I have 2 questions regarding taxation. I understand the NHR scheme has changed, and that incomers now pay 10% tax, but I would like to know if there is a personal allowance which is free of tax, and if so how much. The 2nd question regards the rebate granted against goods bought. How does it work and what is included? I realise that everyone is different but any pointers would be useful.


My understanding, and Iím happy to be corrected, is that there is no personal allowance and that the flat 10% applies from 1Ä

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Old 4th July 2020, 05:58 AM
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Thanks for the reply. Not really such an attractive deal is it.

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Old 4th July 2020, 11:59 AM
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Originally Posted by amcinfrance View Post
Thanks for the reply. Not really such an attractive deal is it.
Not being helpful but try looking at it from a different (Portuguese) point of view of maybe 10 million people, why should an incomer have a massive tax advantage over the general population who have (possibly) been paying PT tax all their lives and have no access to NHR status?
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Old 4th July 2020, 12:09 PM
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Difficult to disagree, but 10% on all income is a bit steep compared to what I pay in France

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Old 4th July 2020, 07:17 PM
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Difficult to disagree, but 10% on all income is a bit steep compared to what I pay in France


Each country is different. Whether it is attractive depends on your circumstances. Itís quite attractive if you have a high pension. Itís not attractive if you have a low pension. Guess which type of pensioners Portugal is trying to attract?

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Old 5th July 2020, 12:58 PM
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What disadvantages does NHR have?

Not sure whether my pension is low or high, at about £12000. And I won't be taking it for a few years, I don't think. I have income from rentals in UK and savings, and UK salary currently, and after next year freelance work.

Is NHR a good idea for me?

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Old 5th July 2020, 09:59 PM
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I am also curious about this.

From what I have read the change to NHR is only for pensions and under the NHR scheme there is no tax on foreign income including employment income for the first ten years as it is taxed in another country, so you could effectively continue receiving UK salary and only be taxed via PAYE under this as Suiko says. Is that correct?

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Old 6th July 2020, 06:11 AM
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I am also curious about this.

From what I have read the change to NHR is only for pensions and under the NHR scheme there is no tax on foreign income including employment income for the first ten years as it is taxed in another country, so you could effectively continue receiving UK salary and only be taxed via PAYE under this as Suiko says. Is that correct?

You need to start by deciding where you are resident, can't be two places, if you are getting a UK salary then presumably you'd be resident in the UK therefore not resident in Portugal therefore not qualify for NHR.

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Old 6th July 2020, 07:01 AM
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Quote:
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Quote:
Originally Posted by NGLEN View Post
I am also curious about this.

From what I have read the change to NHR is only for pensions and under the NHR scheme there is no tax on foreign income including employment income for the first ten years as it is taxed in another country, so you could effectively continue receiving UK salary and only be taxed via PAYE under this as Suiko says. Is that correct?

You need to start by deciding where you are resident, can't be two places, if you are getting a UK salary then presumably you'd be resident in the UK therefore not resident in Portugal therefore not qualify for NHR.
Is that resident for tax purposes or resident for immigration purposes. Eg: could you for example remain a UK resident for tax purposes (at least in the short or medium term) while still getting residency in Portugal prior to Brexit. Is the rule here the 182 days if you have an address in both countries? In my situation we are looking to move over ASAP before Brexit but I will still be working for a UK based company as an employee and be working onsite for a client in the UK 3 days a week or so.

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