# UK/PORTUGAL Taxation HELP



## glennpower (Dec 8, 2010)

To anyone who maybe able to offer advice,

Please i need advice,until 3 years ago i lived in Brazil and was a resident there,i then moved to Portugal,but as i was only renting accommodation in Portugal it was deemed by FINANCAS (portuguese tax authorities) that i did not need to pay income tax in Portugal,i therefore have been paying income tax in the UK,my UK tax year is from october 1st to september the 30th (this was when i started trading in the UK again after returning from Brazil),my latest UK self assessment income tax form is due to be completed for the period october the 1st 2008 until september the 30th 2009,with two payments due in January and july of 2011,i have been in touch with both HMRC (UK tax authorities) and Financas here in Portugal,and they are both insisting i pay income tax in there respective countries (Financas say because i just bought a property in Lisbon,i am now termed resident here in Portugal),but i also spend a great deal of time working in the UK (more than in Portugal in fact) and although my UK salary is paid into a Portuguese account it is paid by a Uk registered company who i do all my work for,not just in the UK but all over Europe and occasionally worldwide,so am i supposed to pay income tax in Portugal and then in the UK but using a double taxation form for income tax relief in the UK,obviously as i am paying in arrears in the UK,(because thats how it works there,even though i make payment on demands for the following year),and if i pay Income tax here in Portugal this year (the Portuguese tax year,is a calendar year),i will be paying two amounts of income tax (I do not have that kind of money,too pay twice),because of the disparity in paying behind in the UK and currently in Portugal,is there a EUROPEAN law that i can use to show to the Portuguese authorities ,so i can just pay income tax in the UK only,without the threat of being prosecuted in Portugal for non payment,any advice gratefully appreciated

Kind Regards,


----------



## Andreas3000 (Dec 19, 2010)

Hi Glennpower,

Does DGCI knows about your earnings in UK and does HMRC knows about your flat in Portugal that you rent? If the answer is no then leave it as double taxation in most cases won't benefit.

Although if they do know then you need first to select the country of main residence (Portugal or UK, but not necessary to be the one where you spend more time).

You need to be clear about this and in case you pick UK as your main residence having a Portuguese bank account might not benefit in your claim as non resident. You don't need to close this account but consider to be paid into other account.

A


----------

