Question:

In order to become a Portuguese Tax Resident, you need to spend 183 days in Portugal.  Does that mean 183 days in one stretch or is that spread over one year whereby we could travel in and out of Portugal?

Also for how many years does one need to maintain the 183 days per annum residency in Portugal?

Answer:

In order to be considered a tax resident in Portugal you need to spend 183 days in Portugal (in total throughout the year) or be an habitual resident in Portugal i.e. treat Portugal as your main address worldwide.

The NHR tax programme is valid for 10 year, this said, you must be considered a tax resident within those 10 years.


 

Answer supplied supplied on 20th October 2020 by Chamber member Edge International, ggraham@edge-il.com

Question:

If I apply for citizenship after 5 years residency in Portugal, are there any other conditions about speaking Portuguese I should be aware of?

Answer:

It is worth mentioning that, among the documents that will be required for applying for citizenship, an applicant requires a certificate of basic language proficiency (A2). There are a number of language schools that provide individual tutoring or classes to prepare for this certificate.

If a UK citizen applies for higher education in Portugal before 31 December 2020, he or she will be allowed to maintain the same status as citizens from any EU member state for the duration of their course (i.e. the fees for the course).


Answer supplied on 15 August 2020 by Chamber member, lawyer Cristina Silva Dias, cristina@silvadias-legal.com

Question:

Which Portuguese government department handles immigration and visas for British people who want to register their living arrangements in Portugal, or who want to research what they need to do?

Answer:

(As at 5th Nov 2020) The Portuguese government department which handles these issues is called SEF (Servico de Estrangeiros e Fronteiras) and they supply information

in Portuguese and in English. See below the SEF contacts and website details.

sef.pt/en

imigrante.sef.pt/en


 

Answer supplied on 1st October 2020

Question:

How do I get residency in Portugal?

British nationals may apply for a Portugal residency permit if they want to work there and stay for more than 90 days. Typically, a resident’s residency permit is granted for a period of one to three years. Why you’re moving to Portugal and how long you want to remain, will dictate the kind of permit you need.

Portugal typically offers two distinct sorts of permits: residency visas and residence permits.

A residency visa is granted before an individual registers as a resident, allowing the applicant admission into Portugal for a period of three to four months.  Upon arriving in Portugal with a residency visa, a foreign national will have the length of the residency visa to register with the Immigration and Borders Service (SEF) and obtain a resident permit.

Residence permits are also temporary, but are typically good for a year. They can, however, be renewed annually depending on how long the applicant needs to stay in Portugal. Once a holder has been a resident of Portugal for at least five years, a temporary permit can be converted to a permanent one.

People who want to stay in Portugal indefinitely should apply for permanent permits; those who don’t want to can simply keep renewing their temporary ones.

There are several different types of Portugal residence permits:

Portugal Residence Permit for Work:

If you have a job lined up in Portugal, you can apply for a work-related residence permit there. The work position you applied for must not have been filled by an EU national within the previous month in order for you to be eligible for this residence permit. Your company must initiate the application for a work permit with the Portuguese Labour Authorities when you want to apply for one. After that, you submit a visa application at the embassy in your home country.

You must fly to Portugal to apply for a resident permit at the Immigration and Borders Service (SEF) after being awarded a residency visa. Your initial residence permit is valid for a year, however you can extend it in accordance with your contract of employment.

The type of work permit you will be granted will depend on the job at hand:

·         Work Visa for Skilled Workers

·         Work Visa for Highly-Skilled Workers.

·         Work Visa for Self-Employment.

·         Work Visa for Cultural Activities.

·         “Tech” Visa.

·         Work Visa for Teaching.

·         D7 Passive Income Visa

Portugal Residence Permit for Study: International students accepted into an educational institution in Portugal can obtain a residence permit for the duration of their study program. It can be renewed annually, but if you want to stay in Portugal after your studies, you must have a job and switch to a work visa.

Portugal Residence Permit for Family Reunification: This kind of residence permit should be applied for should you wish to live with a member of your immediate family who is a resident or citizen of Portugal. Like the resident’s permit, it is valid for the same period of time. The following are eligible: spouses/partners, dependent minor children, and descendants. You can submit a request for permanent residence after five years.

Special Residence Permit for Portugal: There are particular circumstances in which a residency permit may be granted. These may include those who have medical needs, have served their entire military obligation with the Portuguese Armed Forces, have children born to foreign parents in Portugal, or have grown up in Portugal. Permits differ depending to how different each case is.


Answer supplied in October 2023 by Sonia Rola, a Chamber Member who is a Senior Associate Solicitor and Accredited Family Mediator at Buckles Solicitors LLP.

To contact and find more information about Sonia Rola, please click here

Question:

How much money do I need to move to Portugal?

Answer:

The question of much money you’ll need to relocate to Portugal is a two-part conundrum: the income required for residency and the cost of living.

Moving to Portugal for the long-term means obtaining residency, which varies depending on your citizenship. If you’re a UK citizen without an EU/EEA/Swiss passport, you’ll need to apply for a residency visa, and each different type of visa will have different income requirements.

For remote workers and freelancers, the digital nomad visa demands an income four times the Portuguese minimum wage, which amounts to around €3,023 per month in 2023.

On the other hand, the D7 visa is designed for individuals with passive income like pensions, social security, or rental income. To obtain a D7 visa, all that’s required is an income greater than the minimum wage. However, it’s crucial to showcase financial stability beyond the bare minimum for a higher chance of acceptance.

If you wish to obtain a ‘Golden Visa’, you’ll need prove that you have invested either in property, technology, or scientific advancements locally.

As a general guide, you must meet at least one of the following criteria:

·         Investment in property worth at least €500,000 on the Azores or Madeira islands or in mainland Portugal (excluding Lisbon, Porto, and coastal regions).

·         Purchase interior or island property for at least €350,000 with the intention of renovating it.

·         Transfer a capital amount of at least €1.5 million to a Portugal bank.

·         Investment of at least €500,000 in research projects in Portugal’s technological or scientific fields.

The benefits with this visa is that once you have it, you can live in Portugal and explore the wider Schengen region without needing additional visas. Your initial residence permit will be for one year and will be renewed every two years. After six years, you can apply for Portuguese citizenship.

As for the cost of living in Portugal, at the very least, you’ll need to match the Portuguese minimum wage to survive. Keep in mind that this budget leaves little room for luxuries, possibly limiting you to renting a room in a shared house and covering essential expenses like groceries with occasional dining out.

The expenses you can expect to pay can also be influenced by the area in Portugal you choose to move to. For example, Lisbon, Porto, and some regions of the Algarve tend to be more expensive, while regions like Northern and Central Portugal and the Alentejo may be more budget-friendly.

The largest portion of your budget is usually spent on accommodation, followed by food and beverages. As such, it’s important to fully research both rental and home purchase pricing in your preferred locations to make a truly informed decision. Remember to include in additional costs as well, such as clothing, utilities, and transportation as these too can have a sizable impact on the cost of living.


Answer supplied in October 2023  by Sonia Rola, a Chamber Member who is a Senior Associate Solicitor and Accredited Family Mediator at Buckles Solicitors LLP.

To contact and find more information about Sonia Rola, please click here

Question:

My  wife and I are now retired and have owned a property in Portugal for many years. In 2019 we upgraded to a villa with the intention of spending more time in Portugal.  We own a property in the UK as our main residence.  Since Brexit we  have looked into applying for a D7 Visa and we are in the process of obtaining these in order to provide greater flexibility to travel to Portugal over and above the current 90 days in 180 days.  Our understanding is that with the D7 visa we will be able to spend a consecutive period of up to 183 days in Portugal in a year without any tax implications in Portugal – taxes would still be paid in the UK.  Is this correct?

Also, in the event we stay longer in Portugal (ie we were unable to return to the UK due to Covid) we understand we will be allowed to do so but will be required to submit a tax return at the end of the tax year to pay the tax on our income rather than making the payment in the UK.  Is this correct? We hope during the next 5 years to move to Portugal but will not be able to take this action at the current time.

Answer:

There is no single right answer to your question as each case is different.

 

The D7 visa is a residency visa, and you have to spend 6 months in Portugal to qualify for it.  Portugal’s Non Habitual Residents (NHR) programme is a tax programme, which is a separate issue.  You can have tax benefits under the Double Taxation Agreement between Portugal and the UK (which predates Brexit)  if you are living in both countries. Tailored tax advice and guidance on dual residency is very important.

 

See the rules around the D7 residency visa (attached).  You could spend more than 180 days in Portugal in one year but for the time indicated to qualify for the D7 visa you fall into ‘resident in Portugal’ for that year.  D7 is a residency visa, it’s not designed for people who just want to spend 4 or 5 months non-stop each year  in their second home in Portugal.


Answer supplied by Chamber Corporate members Sovereign Group  on 6th April 2021