# NHTR Question



## Roy C (Sep 29, 2012)

Hi, if I was to move to Portugal and qualified for the NHTR does this mean I wouldn't pay tax in either my country of origin or Portugal on my company pension for ten years ( early retirement ) and any property income from the UK. It's not a civil service pension.

Thanks


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## Janina k (Nov 30, 2011)

Hello

NHTR ?

Fred


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## azoreseuropa (Nov 10, 2013)

Janina k said:


> Hello
> 
> NHTR ?
> 
> Fred


According to Google for Portugal.. Its stands for NON-HABITUAL TAX RESIDENT, I think.


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## Roy C (Sep 29, 2012)

Sorry, the ten year tax holiday.


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## robc (Jul 17, 2008)

Roy C said:


> Sorry, the ten year tax holiday.


Hi Roy

Broadly speaking Yes, if you meet the relevant criteria. Tax on UK property income, not so clear cut.

You would be well advised to consult an accountancy firm here in Portugal and also in the UK

HTH

Rob


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## Roy C (Sep 29, 2012)

That is helpful thanks Rob.


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## zakooo (Jan 2, 2015)

hi,i have the nhtr and i think you will find that all income is tax free in portugal if it comes from outside of portugal AND the correct tax has been paid in the member state it came from.


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## Roy C (Sep 29, 2012)

zakooo said:


> hi,i have the nhtr and i think you will find that all income is tax free in portugal if it comes from outside of portugal AND the correct tax has been paid in the member state it came from.


Thanks, so I will pay tax on my company pension in the UK so there is no real saving ?


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## zakooo (Jan 2, 2015)

thats the way i and my pension adviser in the uk read it.me and my wife are taking £10,600 each out of our private pensions a year which we pay no uk tax on but any higher and we would be taxed.


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## robc (Jul 17, 2008)

zakooo said:


> thats the way i and my pension adviser in the uk read it.me and my wife are taking £10,600 each out of our private pensions a year which we pay no uk tax on but any higher and we would be taxed.



I beg to differ, I appreciate that this subject has been talked and written to "death" but the information above is flawed.

http://www.pwc.pt/pt/fiscalidade/imagens/pwc_europe_best_kept_secret.pdf

This is as good a place to start as any, so summising this document you can be assured that should you qualify via the criteria then you will pay no Tax..........on all foreign (to Portugal as foreign) income both earned and unearned, the exception being government pensions which are exempted and taxed in the source country.
In fact the greater the amount of earnings the better as it reinforces the one subjective criteria of high value and high net worth.

There is no 10,600 cut off, in fact there is no cut off at all.

HTH

Rob


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## Roy C (Sep 29, 2012)

Thanks Rob, I will read through that it looks good, I'm also going to A Place In the Sun Live next week at Olympia so hopefully I will get more detail there.

Cheers
Roy


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## ddrysdale99 (Apr 3, 2014)

That's a sales exhibition not an information seminar.


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## robc (Jul 17, 2008)

Roy C said:


> Thanks Rob, I will read through that it looks good, I'm also going to A Place In the Sun Live next week at Olympia so hopefully I will get more detail there.
> 
> Cheers
> Roy


Roy
I am sure that you will get a whole heap of information at the show, but I would suggest that you seek advice from accountants based in Portugal and the UK.

As regards the detail, again I would look to the Accountants as the primary source.

Rob


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## zakooo (Jan 2, 2015)

i think you read my post wrong.i agree that there is no tax to pay in portugal. the £10,600 is in the uk.i have taken 25% of my private pension out tax free and banked it.the rest i withdrew from the stock market and put into a cash fund so that i am not
at the mercy of the ups and downs of shares.i can withdrawn up to £10,600 per year free of tax but any higher and the uk tax man will have is cut living in portugal or not.i have taken professional advise on this and there is no way round getting your private pension out of the uk free of tax above the £10,600 per year rate.


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## robc (Jul 17, 2008)

zakooo said:


> i think you read my post wrong.i agree that there is no tax to pay in portugal. the £10,600 is in the uk.i have taken 25% of my private pension out tax free and banked it.the rest i withdrew from the stock market and put into a cash fund so that i am not
> at the mercy of the ups and downs of shares.i can withdrawn up to £10,600 per year free of tax but any higher and the uk tax man will have is cut living in portugal or not.i have taken professional advise on this and there is no way round getting your private pension out of the uk free of tax above the £10,600 per year rate.


OK

I think we need to agree to disagree, I have vested my pension (private, defined contribution and not defined benefit, personal pension and not section 226) and I would have been a higher rate UK tax payer.

All monies FOT as defined by S2 HMRC

Rob


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## ddrysdale99 (Apr 3, 2014)

If you are deemed to be a tax resident in Portugal then you don't have to pay tax in the UK. That includes any pension income or lump sum.

You do need to consult with some professionals.


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## TonyJ1 (May 20, 2014)

*NHR scheme*



Roy C said:


> Thanks, so I will pay tax on my company pension in the UK so there is no real saving ?


Under the Portugal / UK tax treaty, the country of residence has the right to tax company pensions and private annuities (insurance companies etc) (see article 17 of the treaty - can PM for copy). The paying country retains the right to tax government pensions (civil service / military)


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## TonyJ1 (May 20, 2014)

zakooo said:


> i think you read my post wrong.i agree that there is no tax to pay in portugal. the £10,600 is in the uk.i have taken 25% of my private pension out tax free and banked it.the rest i withdrew from the stock market and put into a cash fund so that i am not
> at the mercy of the ups and downs of shares.i can withdrawn up to £10,600 per year free of tax but any higher and the uk tax man will have is cut living in portugal or not.i have taken professional advise on this and there is no way round getting your private pension out of the uk free of tax above the £10,600 per year rate.


If you are resident in Portugal and have not registered under the NHR scheme, then the 25% withdrawl from the pension fund in the UK, even though tax free in the UK, is subject to tax in Portugal.


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## TonyJ1 (May 20, 2014)

robc said:


> Hi Roy
> 
> Broadly speaking Yes, if you meet the relevant criteria. Tax on UK property income, not so clear cut.
> 
> ...


Rental income is taxable in the country where the property is situated in in accordance with the UK / Portugal double tax treaty - see article 6 ( though, if you are resident in Portugal, it will be taken into account to determine the tax rate in the remaining income subject to tax in Portugal)


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## Duchess (Sep 28, 2009)

TonyJ1 said:


> If you are resident in Portugal and have not registered under the NHR scheme, then the 25% withdrawl from the pension fund in the UK, even though tax free in the UK, is subject to tax in Portugal.


Hi Tony

We are retiring early to PT so is it best if we register for NHR? If so, where do we do that?
What happens when our UK pensions start?


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