# car Insurance



## robc (Jul 17, 2008)

A request for information please. We are considering matriculating our RHD cars when we move over to Portugal next year. We would look to run them until they are completely worn out and not economic to repair.

So, How easy is it to Insure RHD Cars in Portugal given that they would be there permanently?

If anyone can shed any light or experience on this it would be appreciated.

Rob


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## init4theinfo (May 24, 2011)

It is not a hard thing to do, send me a PM if you need help and I will send you some details.


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## canoeman (Mar 3, 2011)

robc said:


> A request for information please. We are considering matriculating our RHD cars when we move over to Portugal next year. We would look to run them until they are completely worn out and not economic to repair.
> 
> So, How easy is it to Insure RHD Cars in Portugal given that they would be there permanently?
> 
> ...


Once Matriculation progress started extremely easy, can't help on price because it's a few tears since I did it. your Portuguese bank would quote you. Some companies will accept UK No Claim Bonus

As you say carS be very careful that they are in separate names and both of you can prove ownership and residence in UK for the min 12 months.
Customs will not accept joint names on log books, utility bills etc ,etc, so if necessary now is the time to make certain that you each have utility bills etc in sole names preferably without the Mr or Mrs on.

One of the hidden costs of Matriculation apart from the €148 embassy fee, is your car is Road Taxed as new not as year of first UK Registration, can be quite a difference.

Tabela Imposto Único Circulação (IUC) 2011 - Tabela Imposto Único de Circulação - Imposto Sobre Veículos e Imposto Único de Circulação


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## robc (Jul 17, 2008)

Thanks Canoeman

I am assuming that the Utility Bills you are referring to are from the UK. We have a mixture of single and joint, such as Water, Electricity, HMRC, Pensions, Bank Statements etc . Does one need to present all the utility bills or just a selection (knowing the Portuguese love of paper I am hoping for once that it is the latter and not the former).

Thanks you for the Road Tax table, quite cheap in comparison to the UK so no worries there.

One question though, Who actually determines the date, *for Tax Purposes*, that you officially enter Portugal, or does one use a trigger event, such as getting the Habitation Licence?

Thanks

Rob


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## canoeman (Mar 3, 2011)

Yes UK or the EU country your moving from, no not all, but sufficient to prove individual residence in UK for the required 12 months. It's the utilities that are more important as HMRC, pensions etc don't necessarily prove residence!
If you'd like the Portuguese Customs site etc PM me

Not certain what you mean by *for Tax Purposes*

For Matriculation your 6 month window to apply is from the Consulate Declaration date.
For Road Tax it's the date of Matriculation, then yearly 
For Personal Tax returns Portugal's Tax Year is Jan > December filed around March/April, so UK records need to be adjusted accordingly. 
As you intend Matriculating it's the Consulate date that will apply, if you weren't then generally the date you Register your Residence here.


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## robc (Jul 17, 2008)

Hi Canoeman

Thanks for the reply

By *for Tax Purposes* I mean Habitually Non Resident. This may or may not have implications in respect of matriculating Cars, registering for Residency etc.

As we are over next week for 2 weeks and are visiting a Taxation Accountant I think my list of questions has just increased. 

Rob


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## canoeman (Mar 3, 2011)

If your Habitually Non Resident you can't Matriculate your cars, you must be a Resident.

The rules are broadly similar in all EU countries and are carefully worded and implemented so you can't avoid paying tax somewhere!

You can't be a Resident of more than 1 country
You are considered a Tax Resident if you spend more than 183 days a year cumulatively or continuously in any 12 month period in one EU country if your home there is considered the primary residence.

The Portuguese Tax authorities state that for Tax purposes

Who is liable for IRS, and definition of Tax Residence
Liable to IRS is any individual person who is a resident of the Portuguese territory, and any non resident individual who derives income therein.
In the case of a resident in the Portuguese territory, IRS is levied on the overall income, including income from outside that territory.
There shall be considered as resident in the Portuguese territory any person who, in the year to which the income relates:
• Stays there more than 183 days, with or without interruption;
• Having stayed there for less than 183 days, has at his own disposal on 31st
December of that year a dwelling place in such conditions that it may be inferred that there is the intention to keep and occupy it as an habitual abode; 

The good news is that there is a double taxation agreement so you never pay 2 lots of tax on any source of income, but it has to be declared!!


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## robc (Jul 17, 2008)

May I suggest a quick peek at Decree Law 249/2009 dated 23rd Sept 2009.

Explains better than I can.


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## canoeman (Mar 3, 2011)

Yes if it continues, but that is Fiscal Tax, and targeted at people who might take up residency. 
My personal view is that the terms and conditions to get this exemption are restrictive and means a total rethink and possible replacement of savings, investments etc, and one of the major things is already in place i.e dual taxation treaty, so if you've paid UK tax on that _income_ your very unlikely to be taxed in Portugal anyway and might actually be better off paying Portuguese tax, for what it's worth that would be my first calculation. 

But going back to your cars,you can't Matriculate them until you take up Residency.


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## robc (Jul 17, 2008)

canoeman said:


> But going back to your cars,you can't Matriculate them until you take up Residency.


Understood but what event determines the date one takes up residency and who controls that event.

For example, if one was to come over to Portugal for a 8 week holiday and then apply to take up residency, does that residency take effect from the application date or the date you entered the country on holiday.


Rob


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## canoeman (Mar 3, 2011)

Holiday and residency are two different things.

You can holiday in Portugal for up to 183 days. You have to bear in mind that the UK also has laws and regulations that decide whether you are a UK resident or not, a simple explanation is that you must reside in UK for 183 days. 

If you intention is to move from UK to Portugal then you must Register your new Residence Status (not your address) within 30 days of 3 months of date of entry.
So if you moved in Jan then you must Register by end April, but theres nothing to stop you doing before end April.

The event as such is triggered by your decision and date of move, it's controlled by EU, Portuguese law.
Just to clear up the word _apply_ you no longer apply as it's a right you have as a EU citizen to live, work or retire to any EU country.
The process now is far simpler, most Camras have a department or office that deals with formalities. 
You present yourself with Passport, Fiscal No, proof of address in Portugal, your supposed to make a declaration that you are financially independent, you can also be asked to prove it, but this seldom happens, cost €7 might now be €15.
Valid for 5 years or Passport expiry date if sooner, after 5 years you can change it for a Permanent Resident Card.
You only get an A4 paper so keep original at home and carry a photocopy copy with you at all times.
Should we start a new topic


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## robc (Jul 17, 2008)

canoeman said:


> Holiday and residency are two different things.
> 
> Should we start a new topic


Probably  Any ideas on what though?


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