# NHR question



## orange1290 (Sep 15, 2019)

I am aware that to qualify for NHR, one must have not been a resident in Portugal for the previous 5 years.

Therefore, if I by a property but treat it as a 'holiday' home, spending less than 6 months a year using it for 2 years, will this stop be from registering for NHR in year 3? 

What exactly constitutes residency with regards to an NHR application in Portugal? If I am tax resident in another country for the 2 years that I use the property in Portugal for less than 6 months in each of those years, am I considered non-resident during those 2 years with regards to NHR?

Thanks for any replies.


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

There is a chance you'll be classed as tax "resident" and not get NHR. PT doesnt care whats your status is other countries, not their jurisdiction. Not a most user friendly format, but official source:



https://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/Folhetos_informativos/Documents/Cidadaos_imigrantes_EN.pdf





https://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/Folhetos_informativos/Documents/Non_regular_residents_Registration_for_tax_purposes.pdf


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## orange1290 (Sep 15, 2019)

Thanks for the very useful reply. 

I have one more question which is quite specific, so not sure if it can be answered here.

I have a company in another EU country and I am the sole director. The company has a property registered in its name. I plan to close the company down and sell the property, the proceeds of which will be paid to me as an individual. Does that income from such a property sale (coming from a company asset) fall under NHR as zero tax rate? Under NHR, is there anything to do with the single director ownership of the company that will invoke any kind of taxation on this income? 

Thanks in advance.


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## TonyJ1 (May 20, 2014)

orange1290 said:


> I am aware that to qualify for NHR, one must have not been a resident in Portugal for the previous 5 years.
> 
> Therefore, if I by a property but treat it as a 'holiday' home, spending less than 6 months a year using it for 2 years, will this stop be from registering for NHR in year 3?
> 
> ...


The tax authority normally looks at its tax records in approving / not approving the NHR status. If the tax record shows that the taxpayer was a tax resident in the previous 5 years, then the nhr application would be rejected. If the tax record was incorrect, the taxpayer may request it to be amended - would need a residence certificate or similar from the tax authority from the country of residence. Best to make sure that the address on the tax record is always correct and updated. Non residents if in the EU don't need a fiscal representative if the tax is elsewhere in the EU. If the taxpayer is resident elsewhere, then a fiscal representative needs to be appointed


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## TonyJ1 (May 20, 2014)

orange1290 said:


> Thanks for the very useful reply.
> 
> I have one more question which is quite specific, so not sure if it can be answered here.
> 
> ...


A dividend would be tax free under the nhr rules (provided the country is not on the Portuguese black list). A dividend in liquidation, is still a dividend


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