Before relocating to Madeira
By Miguel Silva Reichinger Pinto Correia No Comments
Last Updated on April 30, 2020 by Miguel Silva Reichinger Pinto Correia
There might be a bucket full of reasons as to why you wish to relocate to Madeira, but all experts and consultants on the matter will tell two things: access/re-arrange your income before relocating and always engage Madeiran and your home jurisdiction’s tax experts when doing so before actually transferring residency, for migration and tax purposes.
Although the Non-Habitual Resident (NHR) status, which generally speaking grants you a 10-year tax holiday on your foreign sourced income, is fairly easy to obtain it is important to make sure that prior to your effective relocation our worldwide income structure does comply with Portuguese tax law. Failure to do so can certainly imply loss of said exemptions.
Did you know that Portugal, and therefore Madeira, blacklists and penalizes, through taxation, income deriving from more than 80 different jurisdictions including all British Overseas Territories and British Crown Dependencies? Did you know that the Portuguese fiscal year matches the calendar year?
The above-mentioned small details can become a headache if your income structure and relocation dates are not analyzed and adjusted, if needed, on a timely manner in order to comply with the NHR scheme rules.
When thinking about relocating to Portugal, having a tax consultant that fully understands the nuances and variables surrounding the NHR scheme and the implications arising from such relocation, including those deriving from migration rules.
In a ideal world one who relocate to Madeira, then obtain a Portuguese Taxpayer Identification Number, apply for Residency as EU-Citizen (for migration purposes), file application for the NHR status and start enjoying a 10-year tax free life, but that cannot be further from the truth. The first step must always be engaging a Madeiran tax consultant in order to analyze one’s particular tax position prior to relocation.
Madeira Corporate Services has been advising private and corporate clients who wish to invest in Madeira for more than 20 years, operating as one-stop shop in terms of the services and expertise provided. Prior to your relocation do not hesitate to engage our assistance.