# NHR tax - days in Portugal?



## portugaldreaming (Jul 10, 2016)

Hello everyone, 
Enquiring on behalf of a friend who has previously declared NHR tax for 2018 and paid 20% tax, what would the scenario be for the 2019 tax year where that person was only in the country for 157 days, well short of the 183 days of any 12 month period? 

Of that 157 days they had a fixed lease address for 118 days, the other 39 days in hotels = 157. They make no income in Portugal, it all came from overseas. We do not seem to be able to get a straight answer from accountants or lawyers on this question.

Thanks in advance ....


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## RichardHenshall (Jul 26, 2009)

Did your friend leave Portugal, to become resident somewhere else? What's expected for 2020?


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## portugaldreaming (Jul 10, 2016)

They have been in Portugal for most of 2020 so far, but 2019 is the year in question.


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## RichardHenshall (Jul 26, 2009)

I would think that from a tax perspective the biggest concern would be whether, as a result of your friend's absences, another country has a strong or stronger claim to taxation rights. It's sometimes harder to lose tax-residency than gain it.

However from an immigration perspective long absences can jeopardise longer-term residency rights, depending on nationality.


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## portugaldreaming (Jul 10, 2016)

many thanks for your comments, I can see that it is still a grey area!



RichardHenshall said:


> I would think that from a tax perspective the biggest concern would be whether, as a result of your friend's absences, another country has a strong or stronger claim to taxation rights. It's sometimes harder to lose tax-residency than gain it.
> 
> However from an immigration perspective long absences can jeopardise longer-term residency rights, depending on nationality.


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## dancebert (Jun 4, 2015)

I'm no lawyer or tax expert. However, my reading of the law (Article 16, #3) says because he became a Portugal tax resident in 2018, he is a tax resident for 2019, and 20, and 21... or until he notifies Finanças he will no longer be resident for tax purposes.

The law says in Article 16 of CIRS (translated by Google Translate):
"1 - People who reside in Portuguese territory are those who, in the year to which their income relates:
a) There have been more than 183 days, consecutive or interpolated, in any 12-month period beginning or ending in the year in question;
b) Having stayed for a shorter period of time, there, on any given day of the period referred to in the preceding paragraph, have housing under conditions that suggest that they currently intend to maintain and occupy it as their habitual residence;"
...
"3 - Persons who fulfill the conditions provided for in paragraphs a) or b) of paragraph 1 become residents from the first day of the period of stay in Portuguese territory, except when they have been resident there on any day of the previous year, in which case they consider themselves to be residents in this territory since the first day of the year in which any of the conditions provided for in paragraph 1 are met."

http://info.portaldasfinancas.gov.p...codigos_tributarios/cirs_rep/Pages/irs16.aspx


About notifying Finanças you're no longer a tax resident. Quotes from euroFINESCO eBook nº30 - Leaving Portugal Moving Back

"Transferring Fiscal Residency
You must also inform Finanças that you will no longer be resident for tax purposes. As proof, you must submit 2 utility bills related to your new home. If you do not as yet have new electricity or water statements, your bank statement with a local address will suffice." 

https://www.eurofinesco.com/fr/our-...0-leaving-portugal-a5-tablet-colour-cover-3nd


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## portugaldreaming (Jul 10, 2016)

I think this clarifies unambiguously my question - that surprisingly no accountant or lawyer could tell me, though of course I could have found it for myself if I had dug deep enough! Much gratitude....



dancebert said:


> I'm no lawyer or tax expert. However, my reading of the law (Article 16, #3) says because he became a Portugal tax resident in 2018, he is a tax resident for 2019, and 20, and 21... or until he notifies Finanças he will no longer be resident for tax purposes.
> 
> The law says in Article 16 of CIRS (translated by Google Translate):
> "1 - People who reside in Portuguese territory are those who, in the year to which their income relates:
> ...


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## TonyJ1 (May 20, 2014)

If your friend did not notify the tax authority for his absences, and if his main home was/ is in Portugal, he will be subject to tax in Portugal.
One day's presence is enough to be tax residence is enough.
Fairly recent tax case decided on this very point - very difficult to prove non residence if tax authority not previously notified.


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## Attonine (Nov 30, 2020)

This is pretty much exactly the situation I am trying to resolve moving forward.

I work on a rotation basis (42 days work/ 37 days off) outside of Portugal, in fact outside of Europe. This means, on paper at least, I spend around 190 days a year outside of Portugal, exceeding the 183 day requirement Portugal asks.

I'm British, and recently secured my 5yrs residency and am currently dealing with NHR, which I think may solve my issue of not being in Portugal for the stipulated 183 days I'm not sure whether this would effect my 5yr residency though? In my case its not the tax implications, the tax residence, I am concerned about, but maintaining my right to residence period, with Brexit and its various implications down the road. Does NHR have any implications with regard to requesting Portuguese citizenship after 5 years, for example?


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## RichardHenshall (Jul 26, 2009)

I'm not sure why you think that the NHR tax status restricts the number of days you may be in Portugal. You must be resident in Portugal before you can even apply for NHR status and you must maintain your residency to retain the NHR benefits.

The normal way to retain (immigration) residency is to spend a minimum of 183 days in Portugal, though other mechanisms can apply and there are allowed absences. Holding NHR status will not affect acquisition of Portuguese citizenship but your absences might.


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## yevlondon (Jul 8, 2020)

RichardHenshall said:


> I'm not sure why you think that the NHR tax status restricts the number of days you may be in Portugal. You must be resident in Portugal before you can even apply for NHR status and you must maintain your residency to retain the NHR benefits.
> 
> The normal way to retain (immigration) residency is to spend a minimum of 183 days in Portugal, though other mechanisms can apply and there are allowed absences. Holding NHR status will not affect acquisition of Portuguese citizenship but your absences might.


their concern is not that NHR restricts number of days in Portugal, but that they spend LESS than 183 days in portugal and if this can affect NHR status.


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## proud.to.be.EUROPEAN (Feb 14, 2020)

NHR status, once granted is for 10 years.
It's not dependent on number of days spent in following years. You dont loose NHR status if in one or more years you are not liable for PT tax. However, "unused years" are spent and cant be carried on. 10 year period is fix, no extension for unused years.


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## TonyJ1 (May 20, 2014)

Attonine said:


> This is pretty much exactly the situation I am trying to resolve moving forward.
> 
> I work on a rotation basis (42 days work/ 37 days off) outside of Portugal, in fact outside of Europe. This means, on paper at least, I spend around 190 days a year outside of Portugal, exceeding the 183 day requirement Portugal asks.
> 
> I'm British, and recently secured my 5yrs residency and am currently dealing with NHR, which I think may solve my issue of not being in Portugal for the stipulated 183 days I'm not sure whether this would effect my 5yr residency though? In my case its not the tax implications, the tax residence, I am concerned about, but maintaining my right to residence period, with Brexit and its various implications down the road. Does NHR have any implications with regard to requesting Portuguese citizenship after 5 years, for example?


If you 'tell' the tax authority that you are tax resident, then you are tax resident - period. It is harder to prove non residency, then state that you are resident as it is a self declaration. There is an interesting tax case (about 2 years old, therefore recent) of a Portuguese citizen who had business interests in Brazil and spent most of his time in Brazil, but did not advise tax authority that he had become a non resident - held that he continued to be tax resident in Portugal (and subject to taxes as a resident).

The nhr is merely a tax status that allows taxpayers to take advantage of some tax benefits - other provisions of the income tax act are not impacted


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