# IMI, residency & National Insurance



## maidentales (Mar 29, 2010)

I'm extremely confused about some situations for cross boarder in UK information and IMI exemptions on property tax and NI contributions and I've confused situations before by asking the relevant office in the UK who provide one answer but that may not be the actual regulation so I end up giving out misleading information through taking for gospel when I'm advised.

What I'm trying to say is that I try to find out from the office the situation, I'm advised one thing, share that, then it comes back at me because that's not in the regulation, is this then the error of the office concerned and should I follow the advice or follow the regulation?

I suspect that's a reply that can't be made as it would be up to me although I'm sure I'm not on my own!

IMI property tax

There is an exemption on an IMI payment of property tax that you can apply for at the Financas.

Do you need to be resident to apply or are you deemed a resident if you do apply?

Also, does anyone know what you have to do to de-register with the Financas if you register to complete a tax return but afterwards decide not to stay for 183 days after registering but don't register in another country as you've simply gone travelling but for over 6 months in that tax year - would you just simply write a letter to explain what you're doing or do you remain registered?

Do you register with the Financas to complete a tax return if you apply for an IMI exemption or aren't they connected?

What if an IMI exemption is applied for without intending to be resident but you've been advised that you can apply if it's your main residence but it is your main residence but then you don't stay in Portugal for 183 days in each tax year because your circumstances change.

Do you cancel the IMI exemption?

On residency issue:

If, say, you plan not to stay in Portugal for a period of 6 - 8 months (in my case sailing across the Atlantic is planned but postponed last minute) which means that the 3 months and 6 months have passed but a residency permit needs to be applied for - does the regulations allow for leeway in a persons' change in circumstances?

All this in a place where you are supposed to be free to move around.....not that it's that simple in my personal situation!

If I remain registered as not ordinarily resident in the UK, should I then not register in Portugal even if I remain for 183 days in any one tax year?

Do you have to leave that country for six months or will you get fined for then following the regulations given the timing has past by applying for a residency permit?

What if you then wish to de-register if you are going travelling again for a year and don't intend to stay in one particular place and therefore don't register somewhere else.

Does anyone know if you simply write a letter to the residency office and/or Financas?

NI contributions

I pay National Insurance in the UK and work from the UK, completing a UK tax return.

I've come across this information:

HM Revenue & Customs: Voluntary National Insurance contributions if you live abroad

If I pay NI in the UK - I would then expect to be issued with an EHIC from the UK.

What about an address in the UK or should I change this to Portugal and how would that affect an EHIC card? Would I use a postal agency, a PO Box or should I use family or friends' address?

If I pay NI contributions in the UK - to receive Portuguese health benefits I've been advised that I have to pay contributions in Portugal - wouldn't that then mean I'm paying two lots of contributions or should I stick to NI in the UK?

Social Security for my son

My son has a Portuguese Social Security Number and Fiscal Number to register at school. Does this mean that he will in the future be eligible for health in Portugal, although at present, being under the age of 13, children don't pay for healthcare.

I'm trying as much as possible to be factual on the wise advice of Canoeman who has been extremely helpful thank you because I find the whole situation extremely stressful, tiring and the regulations over bearing to sometimes almost impossible to understand nor to know if I'm keeping within regulations, if applying for a residency after the time scale allowed that I would receive a fine and therefore what do I do?

Do I simply keep under the radar as things have been working out ok so far possibly through my ignorance or situations, or do I take a pro-active approach? I suppose this is one for me to decide also!

I've been informed before that I provide mis leading information but that's not what I've been trying to do - I've simply been trying to find answers to some questions that are confusing to say the least and I don't feel I'm alone in some of these situations having read other posts.

Is it simply that some individual situations aren't catered for in regulations?

We've complied with regulations in Portugal before and been stung with fines due to the office mislaying documents and not completing the correct procedures leaving us without the legal documents we needed and involving lots of running around and extreme patience due to frustrations involved and causing more confusion and delay so I suppose I'm trying to pre-empt any future fines for reasons that don't have anything to do with us doing anything wrong but also are born out of confusing information from the various offices.

Sorry to be so long winded as I appreciate assistance from Members could take some time.



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## RichardHenshall (Jul 26, 2009)

maidentales said:


> ... IMI property tax
> 
> There is an exemption on an IMI payment of property tax that you can apply for at the Financas.
> 
> Do you need to be resident to apply or are you deemed a resident if you do apply? ...


You've asked 15 questions in this post. I'm going to answer the second one above, and even though it's really two questions it's easy to answer: Yes and Yes.



> _from Portal das Finanças_
> 
> Quais os prédios que podem beneficiar desta isenção?
> 
> ...


I'll leave it you to use your preferred translator to your preferred language.


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## maidentales (Mar 29, 2010)

Richard, thank you for the link as I haven't been able to locate this information - you may see on my other posts that some discrepancies and misunderstanding have been caused due I believe to my residential status which has meant that regulations pertaining to my own situation are not relevant to a permanent residency situation and matters have become confused somewhere along the line in certain other areas.

That was rectified afterwards although unfortunately the misunderstanding had already meant that certain restrictions had to remain in place, I think perhaps you realise what I am saying and why.

Yes, my situation is extremely complicated by my residential status as non habitually resident in the UK and the fact that I have been travelling and sailing for such a very, very long time!

Not that I have particularly done anything wrong anywhere it's just that I've not elsewhere fully explained my residential status and that has caused difficulties and I have not fully understood that my residential status is causing me to receive information that doesn't apply elsewhere.

At least I think that's what has happened in another similar area.

Realising that I could be complicating my life too much, I decided to tell my full story in another post which I would invite you to read and once again, thank you for taking the time to research some information on my behalf.


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## RichardHenshall (Jul 26, 2009)

INTM154020 - Double taxation agreements: residence: Dual residents


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## maidentales (Mar 29, 2010)

*Dual Taxation*

Hi Richard

Thanks again on this information which I have been able to research on a basic level although I'm still trying to get some more information and confirmation which I am going to need to research through an accountant more for confirmation that the actions taken are the right ones for us as we may in fact, rather than be breaking some regulations, be over paying on tax!!! 

(Wouldn't that be nice if we were?).

Thanks again Richard!


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## maidentales (Mar 29, 2010)

*Closing*

I can take this forward on my own now so I don't need any further responses, although thank you to all who have been kind enough to reply and to take the time to look.


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