Hello: I am considering options for retirement in next couple of years. I am hoping someone - perhaps a fellow Canadian can weigh in on a Portugal tax question. I have a fairly good grasp on the tax situation, but there are some areas I cannot find information on – so am hoping someone here has been through this before.
I will be funding retirement partially through RRSP or RRIF withdrawals. Canada will withhold 15% at source, as I would intend to be a Portugal resident NHR. I don’t think Portugal will tax withdrawals further.
First question – The passive income generated by funds remaining inside the RRIF or RRSP are sheltered in Canada – is this income taxable in Portugal? For example, the US and UK do not recognize the tax deferred nature of these plans, and the resulting interest/capital gains/ dividend income must be reported yearly and I believe is taxable in those countries.
I realize that I will need to hire a taxation specialist – one with both Portugal and Canada tax expertise, but am hoping someone here is already dealing with this.