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?
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, email@example.com
If I apply for citizenship after 5 years residency in Portugal, are there any other conditions about speaking Portuguese I should be aware of?
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, firstname.lastname@example.org
D7 – Passive Income Residency Visa
Is it true that, now the UK is out of Europe, any British person living in the UK who has a bank account or a NIF (tax number) or a property in Portugal needs to appoint a fiscal representative in Portugal to deal with the tax authorities?
On 31st December 2020, the transition period for the United Kingdom’s withdrawal from the European Union (Brexit) ended. As of 1st January 2021, the appointment of a tax representative in Portugal by individual and collective taxpayers, even if they have tax domicile in the United Kingdom, became mandatory. Non-residents need to appoint a fiscal representative in Portugal. They usually have 60 days within which to do this, but exceptionally the Portuguese government has now extended the deadline until 30 June 2022.
Please note, Residents in the EU are not obliged to appoint a fiscal representative, but can do so if they wish.
If you want to know the answers to the following
What is the tax representative for?
Why am I required to appoint a tax representative?
How to appoint a tax representative?
Who can be a tax representative?
Please see the official guide HERE, published by the Portuguese Tax Authority, which will answer these questions and more.
Failure to appoint a tax representative, when mandatory, is punishable by a fine of €75 to €7,500.
Answer supplied by Algarve Daily News on 5 May 2021
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?
(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.
Answer supplied on 1st October 2020
Now Brexit is a reality, how can British second home owners stay longer than 90 days in the EU (or Portugal), without moving their tax residence out of the UK?
I am a British resident and I am thinking of moving to Portugal in 2021. Now that the UK is out of Europe, does applying for Portugal’s Golden Visa make sense for me? What other options are there?
It will depend on your individual circumstances. The Portuguese government’s Immigration Service (SEF) explains on its website the benefits of the Golden Visa and also what you need to do to qualify for it.
This is a special programme designed to attract foreign investment into Portugal. The scheme speeds up the process for foreign investors from non-EU countries to get residence in Portugal, if they buy Portuguese real estate or invest up to a certain value. Provided they meet the conditions, under this scheme non-EU citizens will receive a Portuguese residence permit and can later apply for full Portuguese citizenship.
You will have to invest a minimum of 350,000 euros in Portugal under one of the qualifying routes, but in return your Golden Visa will allow you to live and work in Portugal and move freely within the Schengen countries. You will need to be in Portugal 7 days a year. So it may suit you if you are in a hurry to secure your residency in Portugal, have significant business and family interests in Europe and need the freedom to travel around.
If you are planning to move to Portugal to retire, or live permanently there, there are several other visa options available, which do not involve the same investment costs as the Golden Visa.
Non-EU/EFTA nationals moving to Portugal for more than three months will first need a long-term Portuguese residence visa to allow them to later apply for a Portuguese residence permit from the SEF in your area, Usually, a permit (Autorização de Residência) is granted to allow Portuguese residency for one year. This can be renewed every two years for a total of five years. After this, you can also apply for a permanent residence permit.
All non-EU citizens applying for a Portuguese residence permit will need to demonstrate evidence of sufficient funds and accommodation. There are additional documents and requirements, depending on the reason given for requesting a Portuguese residence permit; find details here, as well as details of fees payable. Information on renewing your Portuguese residence permit is available here.
The Portuguese Immigration Service (SEF) deals with all issues relating to residence permits for non-EU/EFTA nationals.
Residents who are from non-EU/EFTA countries can apply for Portuguese permanent residence after having lived in Portugal for five years if they have a valid temporary residence permit and can prove that they have had a legal and uninterrupted residence in Portugal for the five year period.
Foreign residents can apply for full Portuguese citizenship after six years of residence, although exceptions apply; for example, it’s only three years for spouses of Portuguese citizens and considerably easier for children born to at least one Portuguese citizen or a foreign permanent resident holder.
Information supplied on 7 Jan 2021
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.
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
I am British but I already live in Portugal. However, I didn’t yet update my permit – what do I need to do?
The Portuguese government has updated all its advice on its main portal to reflect the recent completion of Brexit. For more information click here General guidance on the new residence permits for UK nationals under the Withdrawal Agreement – BREXIT (sef.pt) and see the general guidance on the new residence permits for UK nationals under the Withdrawal Agreement
The new residence permit will be issued to UK nationals residents in Portugal before 31 December 2020 and confirms their status as beneficiaries of the Withdrawal Agreement between the United Kingdom and the European Union.
This new residence permit replaces the EU residence documents previously issued (Registration Certificates issued by the town halls and Certificates of Permanent Residence issued by SEF – Portuguese Immigration and Borders Service).
The current residence EU documents will be accepted after 31 December 2020 and until the new residence permit is issued.
After registering on this Portal and submitting the form, the UK nationals can download digital proof of their registration – a document, with a QR code – which can be printed and used when travelling to prove residence in Portugal.
Information supplied 7 January 2021