# tax status after moving to Portugal?



## suiko (Dec 7, 2015)

Is Capital Gains Tax charged on sale of one's main residence, as in Spain and Italy?

And if so, does one become tax-resident from the day one goes to register at the local office, or is one deemed tax-resident for the whole of that tax year (as in Spain)?


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## dancebert (Jun 4, 2015)

From KPMG agrees, updated Aug 2019. It's easier to read than the law, yet it says the same things.

_"Residence rules
For the purposes of taxation, how is an individual defined as a resident of Portugal? An individual qualifies as resident for tax purposes in Portugal provided that one of the following conditions is met:
- He/she spends more than 183 days – continuously or not – in the country/territory within a 12 month period beginning or ending in the relevant year, 
or
- In case they spent less than 183 days herein, they have, at any time of the referred 12 month period, accommodation available in Portugal in conditions where it can be assumed that it is their intention to use it as a place of habitual residence or abode."_

https://home.kpmg/xx/en/home/insights/2011/12/portugal-income-tax.html


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## suiko (Dec 7, 2015)

Thanks. So I take that as you are tax resident from the time you declare yourself at the Camara Municipal.


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## dancebert (Jun 4, 2015)

suiko said:


> Thanks. So I take that as you are tax resident from the time you declare yourself at the Camara Municipal.


I've never heard of declaring your tax residency. The SEF (immigration and borders) database shows when I entered the country and what visa I used. The Finanças (their IRS) database has my monthly rent receipts filed by my landlord as required. My Portuguese tax preparer said either one established my tax residency.


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## RichardHenshall (Jul 26, 2009)

While the rules that determine tax-residency apply to all equally, the rules and processes that govern immigration are very different for EU citizens and non-EU citizens. Due to the ease of movement for EU citizens there are less clear cut trigger dates.

The start of tax-residency can be deemed to be the first date (with the benefit of hindsight) that you began to live in Portugal with the intention to remain, though in practice the date when you register your Portuguese address with the tax authorities is often used for pragmatic reasons. Portugal does operate a partial tax year treatment.

If you have a principal private residence in the UK to sell as part of a move to Portugal, the safest (tax-wise) is to sell while still UK tax-resident to avail of UK CGT relief and to avoid being caught by Portugal which potentially taxes gains on all homes (50% of the gain is taxable for your principal residence and 100% for a second home). A house in the UK is, by definition, a second home for a Portuguese resident.


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## suiko (Dec 7, 2015)

Thanks, Richard. That's what I figured. Portugal seems to be like Italy in this respect, and unlike Spain.


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## suiko (Dec 7, 2015)

Taxation question.... I would be living in Portugal mostly on income from rental in the UK. What rate would this be taxed at in Portugal?


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## suiko (Dec 7, 2015)

One more question... at what rate would my (private) pension be taxed in Portugal?


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## Pgmills (Jan 19, 2015)

Rates between 14.5 and 48% depending upon income level.


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## TonyJ1 (May 20, 2014)

suiko said:


> Is Capital Gains Tax charged on sale of one's main residence, as in Spain and Italy?
> 
> And if so, does one become tax-resident from the day one goes to register at the local office, or is one deemed tax-resident for the whole of that tax year (as in Spain)?


Under general taxation rules, if you dispose of your main residence, this will be taxable in Portugal, though you have the option of rolling over the net proceeds into another primary residence as long as it is done within 36 months (to the day), else 50% of the gain (takes inflation and various expenses into account, but not all and there are time limits) is subject to tax at normal tax rates. If tax was paid in the source country, this can be set off against the Portuguese tax.

If you have the option, best to register under the 'non habitual residency' status. With this status, foreign capital gains from a main residence (provided it is not in a country in the Portuguese black list) will not be subject to tax, though it still has to be reported.


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