# Buying property in Portugal and proof of tax paid at source



## TwentyOne (Sep 11, 2016)

When foreign residents buy property in Portugal do they require proof of tax paid at source?

The reason I'm asking this as few years ago I worked online and saved a bit (not much, circa 50K) for an apartment in Thailand. I was a non-tax resident of NZ at that time (so no tax) and Thailand didn't seem to care about that type of income either. Now property prices in Thailand are sky high whereas in Vila Nova de Gaia I can find a not bad dwelling for this money. 

My question, is there any possibility that when I transfer this money to Portugal to pay for an apartment they would hit me with the tax bill because the income wasn't taxed at source? The income is legitimate (affiliate marketing) I can show from where but I can't show any tax documents. 
Portugal (as most countries these days) is hungry for tax dollars so I'm worried if it worthwhile to take a residence here and buy real estate or stay out of it. I don't do online business anymore though. 

Can anybody help? Is it the same in Spain? (properties are slightly cheaper there)


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## Strontium (Sep 16, 2015)

TwentyOne said:


> When foreign residents buy property in Portugal do they require proof of tax paid at source?
> 
> 
> Does this sentence mean
> ...


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## TwentyOne (Sep 11, 2016)

My apologies for confusing statement.
I meant foreigner in Portugal who will become a tax resident in Portugal on residence visa after 180 days. 
Basically, based on 1+2+2 residency extension scheme the one who is on first year.


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## steve01 (Dec 8, 2010)

if you pay for a house in Portugal , basically in reality no-one cares where the money came from
if its legal and you can if push comes to shove prove that - then you will never have a problem
However - your bank and or\ currency conversion company should and will ask for information - not proof , information when you transfer the money to pay for the property.
If it is earnings during the current Portuguese tax year , and you become tax resident its possible you might have a large tax bill to pay, so be very careful of the date when you move here in relation to the date when you were paid the money


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## TwentyOne (Sep 11, 2016)

Thank you Steve! 
I have no problem to prove that money source is legal, however, I will have a hard time proving that there were any taxes paid. 
If I move to Portugal in November and buy something in January that should work (in theory).
I will be PT tax resident in 2017 with no income from anywhere. The apartment will be bought from prior years income. The only tricky thing here is being in PT on Dec 31, 2016. I read that if I'm in PT on that day I will be considered tax resident in PT for 2016 too. Assuming that I will stay in PT for 6+ months starting November 2016. Can you confirm that Steve?


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## steve01 (Dec 8, 2010)

Hi, 
in theory its the 6 months qualification rule that applies.
However there are some other rules that you can fall foul of.
For example if you received a payment when you were actually resident here - say in your case December 31st and could not show tax paid elsewhere then tax would be payable here , even if you only lived here for a day.
Easiest thing in your situation is to be a tourist until Jan 1st then register as a resident inn the financas at that point - asap after the 1st


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## TwentyOne (Sep 11, 2016)

Steve, Thanks YOU
I should be getting my residence visa in a few weeks time. I was advised at PT embassy that once I enter the country I have to make an appointment at SEF at get a residence card. I don't think I can do Jan 1st residence in this case. However, what I definitely can do is just lay low and not buy anything for a year or so until I feel that I REALLY want to live in this country. I'm studying Portuguese now and will sign up for an intensive course once I get to PT. Thanks again Steve!


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