we are trying to piece together a plan and wanted to pass it by you all to see if anyone can see the flaws or can give it the thumbs up.
We plan to rent out our UK home and then motorhome down to Portugal in September, essentially to look for a place to rent. With this rental secured, we then wish to apply for Portuguese residency a few weeks before the 31st December 'cut-off' for UK citizens as EU members. Furthermore, we would swap our UK driving licences for Portuguese ones, again to avoid having to re-sit a driving test in two years.
We have investments in shares that will mature in a couple of years and so do not wish to sell any until then, hence the idea of renting for a year or two before buying. In the meantime, there will be an income from one state pension and the rental of the UK property.
One question I have is, will we be taxed for the full year of 2020 (as per the normal Portuguese tax year) even though we will only become citizens in December? I also understand that we need to be resident for six months before we can apply for Non Habitual Tax Residency in 2021. Again, does this mean half a year taxed as a normal Portuguese citizen and half in the NHTR category?
Finally, if we buy a house in Portugal and then sell the UK house within the ten year NHTR period are we exempt from Capital Gains or should we sell the house in the UK BEFORE buying in Portugal, again within the ten year period?
Maybe someone can answer some of this!!