Moving to Portugal from the UK does not need to be a nightmare from an immigration or taxation standpoint.
British expats, when relocating to their country’s oldest ally, need to look after two primary issues: residence visas and taxation advisory. Relocation is easy if one gets the correct advice on these two matters.
Residence visas for those moving to Portugal from the UK
Residence visas, such as the Golden, D7, or Digital Nomad Visa, enable you to reside in Portuguese territory. But distinctions must be made on the number of days you are required to be physically resident in Portugal, depending on the type of visa you have applied for:
- Golden Visa – seven days per year;
- Any other kind of visa – six consecutive months or eight non-consecutive months.
Given the above, applying for any other type of visa other than the Golden Visa triggers Portuguese taxation on your worldwide income. Therefore, we suggest you speak with an internationally experienced tax advisor before applying for a residence visa to understand your potential liabilities in Portugal.
A prevalent misperception is that foreign nationals may choose where to pay taxes. If you spend more than 183 days in Portugal in a given year, the Portuguese government considers you a tax resident of the country, and therefore you must file and pay taxes there on your worldwide income in Portugal. Even if one benefits from the ten-year tax holidays, under the NHR scheme, one must file tax returns in Portugal!
Given the above, it is crucial that when relocating, you opt for personal tax accountants with recognized international taxation experience. Knowing not only the quirks of Portuguese Personal Income Tax but also a broad understanding of foreign jurisdictions and being able to interact with your tax adviser back home is critical.
MCS assists its private clients operating in European and Non-European OECD tax-compliant jurisdictions. Furthermore, MCS always understood the absolute need for continuous legal assistance to our clients in combination with their tax reporting and compliance. MCS entrusts this assistance to a reputable Portuguese independent law team with international experience in corporate, tax, real estate and inheritance law.
At MCS, we can assist you with your tax and immigration matters in Portuguese territory. This article is provided for general information purposes only and is not intended to be, nor should it be construed as, legal or professional advice of any kind. Should you have any questions, please do not hesitate to contact us.
Ambrosio Jardim has, since 1998, worked mainly in the areas of commercial law (corporate, mergers and acquisitions, joint ventures, restructuring and planning), national and international tax law and real estate…. Read more