# Tax clock



## VinhoVerde (May 2, 2014)

Hi all, I'm planning to move to Pt next September from Canada, and need to apply for residency within 90 days of arrival, but don't know if that means that, for tax purposes, the 'tax' clock starts ticking from the date of arrival in Pt or from the date of application (which may be up to 90 days later). I'd like the 'tax' clock to start ticking on 1 January 2016. Any insights appreciated, thanks!


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## canoeman (Mar 3, 2011)

If your Canadian then *you need to apply* for Residency *before* leaving Canada and have it granted, if you are a EU citizen then it's 90 days but in that case it's *not* applying as it's a EU Citizen's right to live, work, study, retire in any EU country *but registering* your Residence.

Portugal Tax year is Jan to December you are considered a Tax Resident once you take up Residence, whether you have to file a return for Sept to Dec 2015 depends on a number of factors
Employed or self employed yes 
Living of savings no
Retired with a Pension possibly


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## VinhoVerde (May 2, 2014)

Appreciated, thank you, but when applying locally, the consulate gave me an information sheet saying that I should apply **in Portugal** within 4 months of arrival. It may well be that differences exist at local/national levels and differ also depending where you originate from outside Schengen. 

The question, more exactly, is when "taking up residence" starts: when entering Pt or when submitting an application for residency? I realize this question may be unanswerable given the uncertainty about how to apply, unless someone has experience of this exact situation.


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## canoeman (Mar 3, 2011)

Consulate has given you bum information, unless there has been a recent change in Law which I don't believe to be the case, plenty of recent posts on subject, a non EU Citizen must apply for a Residence Visa and have it granted *before* relocating to Portugal, it cannot be done in Portugal

This is Portugal's US Embassy site, and applies equally to Canadian Citizens and clearly states what you are reguired to do Residency Visa

*Take note of *
Types I & II 

Completed applications with all required documentation (see attached table) must be submitted to the nearest Portuguese Consulate for processing. The application is then forwarded to the “Serviço de Estrangeiros e Fronteiras” in Portugal for consideration. *Applicants may relocate to Portugal ONLY after they have secured the proper visa.*

Residency starts when you arrive with correct Visa and register with SEF


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## bom dia lisbon (Aug 8, 2013)

Best to consult an accountant regarding your particular issue, but I find that the following site consistently provides good information:

Income Tax in Portugal | Portugal

To clarify the residency visa/permit issue, you apply for a residency visa from your home country. It is simply a visa, a sticker that attaches to a page in your passport that allows you to enter Portugal for the purposes of applying for residency, and is valid for four months. 

Once in Portugal, and during the period of visa validity, you must apply for a residency permit. It is a formal application process, differing from the registration process that EU citizens go through.

Good luck!


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## canoeman (Mar 3, 2011)

Yes a good site but although most of information accurate the percentages quoted aren't and haven't been updated for quite a while.

Can you confirm that the application for the Visa is as I've posted as your post sort of implies that it's far easier


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## bom dia lisbon (Aug 8, 2013)

Canoeman, your info is accurate  But just wanted to clarify that the Residency Visa, while an extremely extensive application process itself, is simply a "foot in the door" that allows you to apply for the actual Residency Permit in Portugal.


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## VinhoVerde (May 2, 2014)

Thanks to both for your help.


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## dstump (Apr 26, 2010)

Hi Vinhoverde, we will be moving to PT in May 2015 and have been discussing our tax situation with an accountant at PwC in Lisbon, here is an extract from his most recent mail to us, sent at the back end of November. It may well provide you with your answer.

_“In addition, under the Portuguese Personal Income tax reform, which should be in force in 2015, the split year approach will also be possible, as the criteria of Residency will change and establish that a person is deemed to be tax resident in Portugal since the first day of arrival to Portugal and onward, and not for the whole year. In this sense, under this new criterion that should be approved at the end of this year, you will qualify as Portuguese tax resident since the day you arrive.”_


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## VinhoVerde (May 2, 2014)

Thank you! The situation seems quite fluid in that PT law seems to change regularly! Will have to figure out my time of arrival carefully as I don't want to deal with a split year, if possible.


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