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Not a four letter word – but perhaps it should be!
Plan for it and plan for it early. Get it right and save yourself money.
There are a number of considerations especially if you are looking at a move to Portugal!
Get in touch early – ideally a minimum of 6 months prior to coming to Portugal and certainly within the first 24 months of becoming resident.
No Wealth Tax!
Not the only reason why Portugal might be considered better than Spain!
When you move to Portugal for the first time, you may fall under the NHR (Non-Habitual Resident) programme designed for new expats who have not lived in the country within the previous five years.
The scheme offers favourable tax treatment for the first ten years of your residency:
Potential tax exemption against foreign-sourced income (including employment taxes, capital gains, and real estate income).
Flat rate of 10% tax on foreign pension earnings.
A reduced 20% tax charge on Portuguese employment or self-employment income.
28% tax rate on Portuguese sourced interest income and dividends.
If you have been a UK resident within four of the last seven years and become a non-resident for fewer than five years, you may still be liable for UK capital gains tax against assets owned before your relocation.
Tax is such a huge and complex area, get in touch and arrange a conversation for more detailed and personal information.
Expatriates that buy a UK property as a non-resident will not be liable for British capital gains tax, where the charge becomes payable in Portugal.
Want to know more? Contact us