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Discussion Starter · #1 ·
Hi, first time user, apologies in advance, if incorrect protocols etc!
I am looking into the Portuguese tax situation. As a potential resident from Australia that does not have a double tax agreement, does anyone know what th implications would be? Will I have to pay tax on my income in Oz and in Portugal?
thank you
 

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Hi, first time user, apologies in advance, if incorrect protocols etc!
I am looking into the Portuguese tax situation. As a potential resident from Australia that does not have a double tax agreement, does anyone know what th implications would be? Will I have to pay tax on my income in Oz and in Portugal?
thank you
Hi FrankieOz,,,

sorry don't know about Australian rules but every though we came from the UK, who have a double taxation agreement, we decided it was safer to find a good english speaking accountant here in Portugal and it was worth every cent we paid her....
 

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OK, I'm no expert on Australian taxes, but since you haven't had a response yet, I'll offer a few things to investigate.

Does Australia tax its citizens resident abroad? Generally, once you're outside the country for at least half the tax year (183 days) you aren't considered "tax resident" and will only be taxed on certain items (investments or government pensions) at a "non-resident." The big exception to this is the US (Americans are always subject to US taxes, no matter where in the world they live), and from what I hear on the forum here, Canada has opted for a similar policy. But check this out first.

Once you become resident in Portugal you will be subject to Portuguese income tax. Again, the usual criteria is once you arrive in the country with the intent to remain for at least 183 days out of the year (probably calendar year), you are subject to tax as a resident.

Even without a tax treaty between the two countries, though, there is usually some provision for crediting taxes paid in one jurisdiction against your tax liability in the other, so that you shouldn't wind up paying twice on the same income.

First thing, though, is to check Australia's take on taxing their overseas citizens. If they don't tax non-residents, then all you need to worry about are the Portuguese tax rules and figuring out how they apply to you.
Cheers,
Bev
 

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Discussion Starter · #4 ·
Dear Bev
Many thanks for your really helpful reply, will certainly start with the Australian taxation end and then look again at the Portuguese taxation system for residents, ie someone who stays longer than 183 days. Lots to consider but certainly a forum like this where you can ask such a question and get a helpful response is wonderful.
Again many thanks, Frankie
 

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Discussion Starter · #5 ·
Hi FrankieOz,,,

sorry don't know about Australian rules but every though we came from the UK, who have a double taxation agreement, we decided it was safer to find a good english speaking accountant here in Portugal and it was worth every cent we paid her....
Dear Bubbles67, sounds like really good advice to me, will add to my list (every day getting longer)! Thank you very much :)
 

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As per last I also no expert in Australian taxes but one thing to bear in mind is that the Portuguese Tax Year runs per the calendar. 1 Jan - 31 Dec. It is out of sync with the UK tax year and therefore P60s etc do not match the periods. Don't know if it's the same in Aussie but just my tuppence worth.
Reg, Aljezur, Portugal

OK, I'm no expert on Australian taxes, but since you haven't had a response yet, I'll offer a few things to investigate.

Does Australia tax its citizens resident abroad? Generally, once you're outside the country for at least half the tax year (183 days) you aren't considered "tax resident" and will only be taxed on certain items (investments or government pensions) at a "non-resident." The big exception to this is the US (Americans are always subject to US taxes, no matter where in the world they live), and from what I hear on the forum here, Canada has opted for a similar policy. But check this out first.

Once you become resident in Portugal you will be subject to Portuguese income tax. Again, the usual criteria is once you arrive in the country with the intent to remain for at least 183 days out of the year (probably calendar year), you are subject to tax as a resident.

Even without a tax treaty between the two countries, though, there is usually some provision for crediting taxes paid in one jurisdiction against your tax liability in the other, so that you shouldn't wind up paying twice on the same income.

First thing, though, is to check Australia's take on taxing their overseas citizens. If they don't tax non-residents, then all you need to worry about are the Portuguese tax rules and figuring out how they apply to you.
Cheers,
Bev
 
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