Moving to Portugal – Visas, Residency & Citizenship – Expats Portugal Community Forum
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Moving to Portugal


Posts: 2
Community Member
Topic starter
(@idansh)
New Member
Joined: 5 months ago

Hi everyone, this is my first post on the forum.

My name is Idan. I am an Israeli resident and Portuguese citizen, currently in Portugal.

My question is about taxation. I have a Portuguese citizen card and Portuguese passport which I received around a year ago, so I am a new Portugese citizen.

From my understanding, if I stay in Portugal for more than 183 days I automatically become a tax-payer resident. Is it true? I don't own a house nor I work in Portugal (I work from home via the Internet). Or I can stay in Portugal for more than that without paying taxes if I don't own a house and not work in the country?

I might have more questions but this is the most important one to start with.

Thank you.

 

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Posts: 2298
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(@x-camone)
Noble Member
Joined: 11 years ago

Hi, and welcome to the forum from me.

 

Yes, it's correct that the primary test for whether one is tax resident in any given year is as you state.

Under those circumstances you would be required to declare income from all sources worldwide, along with any tax paid abroad, to the PT tax authorities.

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Posts: 2
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Topic starter
(@idansh)
New Member
Joined: 5 months ago

Thank you. But this means that I only need to declare my income abroad or pay taxes in Portugal as well even with a dual tax agreement between the two countries, which exists so there would be no double taxation. OR I just pay the taxes in Israel and declare those?

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(@x-camone)
Joined: 11 years ago

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Posts: 2298

@idansh

It depends.

The DTA determines which country has the primary claim to tax, and it isn't necessarily where the income arises - it's more usually paid in the country of residence.

Nor is it necesarily the case that because one of the countries has the primary claim on any given income, the other doesn't have any at all, so eg where the source country has a claim it may be that the country of residence could apply a "top up" tax if their own rate is higher, but giving you a credit for the tax already paid elsewhere.

If you have passive income, it would be well worthwhile your investigating the Non Habitual Resident tax regime. It's open to all new residents (don't be fooled by the name - it applies to fully resident individuals. The "non habitual" signifies not having been tax resident in any of the previous 5 years). It could also confer a favourable tax rate on earned income, provided the work is on a list of eligible occupations.

I don't know the full ins and outs of it, but living in Portugal and working remotely or freelance for foreign clients might very well be considered to constitute working in Portugal, where, as a consequence, not only tax but also Social Security contributions would be due.

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Posts: 1859
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(@old-bloke)
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Joined: 13 years ago
Posted by: @x-camone

I don't know the full ins and outs of it, but living in Portugal and working remotely or freelance for foreign clients might very well be considered to constitute working in Portugal, where, as a consequence, not only tax but also Social Security contributions would be due.

I think you may be right as the below was recently published by Autoridade Tributária e Aduaneira on their facebook page.

Rendimentos obtidos no estrangeiro.
Os contribuintes singulares residentes, que tenham obtido rendimentos fora do território português, devem, ao entregar a Declaração de Rendimentos Mod. 3 declarar os valores recebidos entregando o Anexo J.
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