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Buying Portugal property through UK company

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Topic starter
(@kate1)
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Joined: 2 years ago

Hi,  I'm thinking of buying an investment property in Portugal to move to in around 10 years. Until then I will stay and work in the UK.

Because of the tax advantages to uk higher rate taxpayers on property income  I'm thinking of buying it through my uk ltd company (in which I already have a uk rental property). Will Portugal be OK with this, or will it incur horrendous tax / bureaucracy and be better to buy as an individual?

I am also a portuguese non habitual resident.

Can anyone advise or recommend sources of guidance (free or paid)? Thanks!

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VIP Member
(@x-camone)
Joined: 12 years ago

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Posts: 2381

I am also a portuguese non habitual resident.

Hi, and welcome to the forum from me.

This isn't an answer to your question, I'm afraid, but it is something it might be best to be absolutely clear on from your point of view.

Non-habitual residency has a very specific meaning in Portugal - it is a tax status conferring various potential benefits which is only available to new residents and applies for a maximum period of 10 years, non-renewable. The main criteria for eligibility are 1) that you have transferred your residence to Portugal and 2) that you have not been tax resident in Portugal in any of the previous 5 years.

Although it is possible to have acquired the status and subsequently departed, suspending the application of NHR but with the option of resuming the status should you return within any of the remaining 10 years counting from the start date, it seems unlikely from what you have said that that applies to you.

You may just be using rather inaccurate terminology, of course, but given that NHR implies you being registered with the tax authority in Portugal as being resident in PT and that there are obligations associated with that, you might want to check as to whether you really are registered as a beneficiary of the Portuguese non-habitual resident tax regime.

 

 

 

 

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Community Member
(@kate1)
Joined: 2 years ago

Member
Posts: 3

@x-camone Thanks for the clarification re: NHR status.

I registered residency in 2020 but,  unfortunately my current UK job cannot be performed overseas. Consequently I have only been able to spend time in Portugal for  limited periods, although I have a rental address (which the landlady kindly let me keep for low fee whilst not in Portugal) I am aware NHR lapses without qualifying residence. It may be that I can work in Portugal in the coming years and reinstate NHR if it is deemed to have lapsed as you suggest.

Currently I am exploring options including changing jobs!

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VIP Member
(@x-camone)
Joined: 12 years ago

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Posts: 2381

So, have you informed the tax office that you are not resident in Portugal or was the last interaction you had with them to acquire NHR status?

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Admin
(@jonesdn2020)
Illustrious Member
Joined: 1 year ago

Here are just a few businesses from the business directory that could assist. Check out their websites to see if they align with your situation and reach out to them.

Reis & Pellicano
Blevins Franks
The Sovereign Group
Fiduciary Wealth Management
All Finance Matters

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Community Member
(@kate1)
Joined: 2 years ago

Member
Posts: 3

@jonesdn2020 Many thanks - I will have a look at these 🙂

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Posts: 2279
VIP Member
(@old-bloke)
Member
Joined: 14 years ago
Posted by: @kate1

I'm thinking of buying an investment property in Portugal to move to in around 10 years. Until then I will stay and work in the UK.

Because of the tax advantages to uk higher rate taxpayers on property income  I'm thinking of buying it through my uk ltd company (in which I already have a uk rental property).

Will it make any difference what the tax advantage in the UK is? Under the UK/PT taxation treaty income from immoveable property (rental houses) is taxed in the country the property is situated in.

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