# Non Habitual Residency



## rubytwo (Jun 22, 2015)

Hello

I know that there are already a lot of posts on this subject but I understand that I can apply for NHR status via the financias website and I am hoping for some feedback from anyone who has gone through that process recently.

I'm trying to guage if that is an option to consider or if I should find a lawyer to hndle the application?


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## Naaling (Apr 9, 2015)

rubytwo said:


> Hello
> 
> I know that there are already a lot of posts on this subject but I understand that I can apply for NHR status via the financias website and I am hoping for some feedback from anyone who has gone through that process recently.
> 
> I'm trying to guage if that is an option to consider or if I should find a lawyer to hndle the application?


Its easy to do on the Financas web site. No need for a lawyer or anyone else.


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## rubytwo (Jun 22, 2015)

Naaling said:


> Its easy to do on the Financas web site. No need for a lawyer or anyone else.


Thanks for reply Naaling. Do you happen to know if, without the NHR status, any income from Australia would be taxed in Portugal? I know that there I no double taxation treaty between Portugal and Australia but someone told me that there. Is an OECD convention that prevents double taxation. However, I haven't been able to find anything to support this.


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## Naaling (Apr 9, 2015)

I haven't really looked into what happens without NHR. My guess is that Australian income would be taxable in Portugal, but you would be able to deduct any tax paid in Australia from your Portuguese liability.


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## RichardHenshall (Jul 26, 2009)

Generally, a Portuguese tax resident pays tax to Portugal on his worldwide income unless there is a specific variation (such as the NHR scheme). What you need to worry about is if another country also has the right to tax any of your income (typically property income is taxable in the country where the property is located) and the absence of a double taxation treaty means that Portugal taxes you again on the same income, without giving any credit for tax already paid at source.


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## Great-Dane (Oct 17, 2017)

I would rather take a lawyer and spend a few pounds on good advise. There are dead lines and also other things to consider. Better safe than sorry.


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## advolex (Mar 8, 2015)

A small clarification: The OECD provides model tax treaties with authoritative commentaries to the provisions, and bilateral tax treaties between OECD states are often based on those. So, a copy of the tax treaty between the state where your money comes from (the source state) and Portugal (your state of residency) should be of intererest to you. It would probably contain definitions of where you are deemed to reside and where your income shoud be taxed.These definitions should have precedence over domestic tax laws unless you got it wrong. The tax treaties are available in more than one language and are easier to understand than most domestic tax laws. Of course you should consult an international tax lawyer if your life depends on it, but often you could get the general idea of just checking the tax treaty with a local accountant or similar. One small caveat: The OECD model tax treaty changes from time to time, and so do the tax treaties. The last I heard the Portuguese government yielded to a modification request by the government of Finland, affecting the not-so-important number of Finnish expats residing in Portugal.


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## rubytwo (Jun 22, 2015)

advolex said:


> So, a copy of the tax treaty between the state where your money comes from (the source state) and Portugal (your state of residency) should be of intererest to you.


Thanks for this. However there is no treaty between Portugal and Australia. Not sure why...


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## advolex (Mar 8, 2015)

*The importance of a Tax Treaty*



rubytwo said:


> Thanks for this. However there is no treaty between Portugal and Australia. Not sure why...


As @RichardHenshall pointed out, without a tax treaty between the states you're connected to there is a risk of double taxation. That's what you get if the national tax laws of both states ask for their share of your income. If they both want more than half of your income, you'd be better off without the income. And no, there is no supranational tax law of the OECD. What your contact was likely thinking of was the model tax treaty, which is just a proposal to the member states.

What I think is a complete list of the tax treaties Portugal has agreed on is available at the AT's site.


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