Expat Forum For People Moving Overseas And Living Abroad banner

1 - 4 of 4 Posts

·
Registered
Joined
·
96 Posts
Discussion Starter · #1 ·
Is there anyone that derives income from UK owner property that has becomes a Portuguese resident and pays their tax due on that rental property in the UK. Tax paid in the UK. If so, what is the situation tax wise in Portugal and in particular, where they are registered under the non habitual tax scheme. Needing some guidance on how the system works in that respect with the Portuguese tax authorities.
 

·
Registered
Joined
·
4 Posts
I'm also in this exact situation and was advised by my accountant that no Portuguese tax was due on the UK rental income. There's an agreement between most countries that rental income is taxed in the country where it's generated.
 

·
Registered
Joined
·
406 Posts
I'm also in this exact situation and was advised by my accountant that no Portuguese tax was due on the UK rental income. There's an agreement between most countries that rental income is taxed in the country where it's generated.
Property rental income is normally taxed first in the country where the property is located. It is normally also taxable in the individual's country of residence where, subject to a suitable double taxation agreement, the tax already paid will be allowed against this second tax assessment. A Portuguese resident taxpayer, who is not in the NHR scheme, will be liable to tax in both countries under their respective rules. Expenses may be allowable against tax in one country but not in the other, so the taxable income may be different in the two countries.

It's the NHR scheme that affects the Portuguese tax assessment and it is of no consequence to the first country's assessment.
 

·
Registered
Joined
·
96 Posts
Discussion Starter · #4 ·
Thank RichardHenshall for a very clear answer to the situation as presented. As presented, is how I interpret the system. It is clear that if in the NHR scheme and Portuguese tax is being demanded, the Portuguese account has entered incorrect information into the forms. Just to say, the issues I had, have been resolved, or so it seems.
 
1 - 4 of 4 Posts
Top