# retirement taxation



## portugalsagogo (Aug 25, 2011)

Hi Folks, I am retireing in January 2012 and thinkiing of going to live on a residential camp site in Portugal. At 48 my income will be my company pension that is taxed in the UK, but I would not like to be taxed as a resident of the UK.

Can you please advise me on my best way forward, for example should I maintain my UK resident status and go for the out of country tax relief?


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## canoeman (Mar 3, 2011)

As a Portuguese Resident you can opt to have pension or any income taxed in Portugal, you should therefore check with a Portuguese Accountant on the benefits or otherwise. 
Because there is a dual tax agreement with UK you are not taxed on same income twice, so if you paid tax in UK you would not be taxed here on the same income.

You can't retain your UK Resident status and live in Portugal full time, you would be limited to a maximum of 6 months (continuous or cumulative) to comply with UK Resident law.

The other thing you need to consider that at 48 you are *not of official retirement age* so I'm fairly certain you would need to make provision to pay into the Portuguese Social Security system.


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## portugalsagogo (Aug 25, 2011)

*Thanks*

Thanks for that, life sucks. I thought I could just up sticks and head for the sun and enjoy the tax back by being out of town.
Would I be better off with a touring caravan and just travel around like a hippy or buy a small plot of ground and hide on it?


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## canoeman (Mar 3, 2011)

Wouldn't advise it, difficult to do either now, especially as your receiving a company pension, and you still need to live in UK for 6 mths to retain your UK Resident rights.
Presuming you want to retain your UK State pension entitlement which if you were born in 1964 you won't receive till 2030, it would be very reduced with only 28? years contributions, although if you paid into Social Security here you would get a UK credit, but then pensions here aren't as good as UK ones.
Lots for you to consider. I'd start by getting a UK Pension forecast.


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## portugalsagogo (Aug 25, 2011)

I might just purchase a holiday mobile for myself and family to visit and also a motorhome and a cheap piece of land that I can retire to when I am 65.
To buy land and a mobile would I need to get one of those cards to make a purchase over 2,000 euro and can I get it from the Portugese High commision before I go or get help in the region to get it.


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## canoeman (Mar 3, 2011)

You'd need a Fiscal Number (NIF) personal tax number to buy land, holiday mobile or motorhome of *any* value, you can only get it from a Financas Office (Tax Office) in Portugal, each Camra has it's own tax office.
You only require a passport and 7ish €'s

If you check Portuguese car prices you'll find it's cheaper to buy in UK probably even a LHD.

Land has certain designations in Portugal, there's been lots of posts about this, you can't just do want you want where you want, like site a mobile home.


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## portugalsagogo (Aug 25, 2011)

*Thanks yet again*

Oh life is never straight forward is it.[


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## canoeman (Mar 3, 2011)

It's a matter of research, you could follow that course or your original idea of a residential caravan park, it's being aware of 
your income
Resident status requirements UK or Portugal
Which defines your tax status
Social Security requirements in Portugal if any

Just to get you started
Health care. As a visitor (you can only visit for a max 6 mnts) you would be entitled to the same treatment and costs as a Portuguese citizen with a valid UK EHIC card, you must be a UK Resident (6 months to be a Resident)
As a Portuguese Resident you would need to enroll in the Portuguese Health Service, the UK would only fund 2.5 years contributions into Social Security, so if you had to pay into it your looking at 16 years contributions.


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## portugalsagogo (Aug 25, 2011)

On top of everything I am Diabetic so I would need my medication which would also be a problem I think. I had thought that with cheap flights back to the UK I could collect my prescriptions stay for a while and fly back.


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## canoeman (Mar 3, 2011)

No problem diabetes is quite prevalent in Portugal and I believe medication and needles are free to people registered in the State health care system.
Think you've a lot of research to do


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