Filing of Tax Return in Portugal

I am trying to understand the requirements for filing a Tax return in Portugal. This could be with or without NHR.

  1. Is it a simple online process or do you need a tax lawyer.
  2. What is the cost of the tax lawyer
  3. What information and details are required on global income
  4. What back ups are required to be submitted along with the filing
  5. Do the Portugal tax authorities work on the principle of trust or do they make more tax demands
  6. Do the Portugal tax authorities take a strict or lenient view of DTAA
  7. Is a tax lawyer required to handle the information and tax demands after filing
  8. Do the tax authorities correspond in English or Portuguese

I just read a post about the new requirement of furnishing of global assets even under NHR.

I am trying to assess the cost and pain of becoming a tax resident and filing a return.

The immigration consultant had sold the GV based on the NHR saying that there would be no tax on global income. However a word of caution to those rushing to become tax residents.
Income from pension, capital gains on securities and other tax free income( tax free bonds) in your home country could be taxable in Portugal even under NHR.

Even if not taxable, I am concerned about the cost and work required for getting a favorable assessment from tax authorities.

Happy to hear from members you have filed and have experience of the system.

I have NHR and reside in PT

1 & 2 - personal preference, I use a tax accountant because without NHR I couldn’t live in PT, agreed a package including GV visa, tax assessment, tax representation & tax filing
3 - worldwide income in EURs including any employment, self-employment, dividends, interest, rental income, pension, gain from sale of securities/ real estate / funds. The days of presence in PT and the date of taking up residence. IBAN & BIC of all non-Portuguese financial accounts
4 - nothing requested so far
5 - see above
6 - didn’t seem to be any gray areas, all cleancut
7- not aware of any post-filing issues
8 - Portuguese

The process was straight forward and if you have decent records you’ll easily be able to comply with the information part. I would recommend a local tax advisor for the first year at least. If you have simple affairs I suspect you don’t need a tax accountant thereafter.

Alternatively if tax / NHR is important get a full assessment before getting into NHR/PT.

Hi Peter, just PM’ed you—would you be willing to share the contact info of your tax accountant?

I don’t want any surprises after moving/volunteering myself as a tax resident, and don’t mind paying a little $$ for tax advice. This way, at least I can choose to go somewhere else instead of Portugal :innocent: to spare my worldwide income.

Thanks @Starts for your detailed reply.
Did you have to pay any additional tax in Portugal on your global income.

I am trying to evaluate the benefits and disadvantages of taking tax residency.

I propose to rent an accommodation on a one year lease. But I will keep my main residence in my home country. I will keep my days in Portugal below 182 days.

  1. Will I be treated as a non resident for tax purposes
  2. Based on the one year lease, can I register for SNS ( Health card) though I will not change the address on my NIF to the leased accommodation.
  3. Is becoming a tax resident a criterion for the State while deciding about citizenship.
  4. Are there any other benefits of becoming a tax resident

Yes, marginal, offset but reductions elsewhere. Income tax on capital transferred to PT.

Below is opinion, others may differ, professional tax advice recommended:
1 - no, since you don’t intend to make PT your permenant habitual home
2 - I don’t know, at a guess no, but you should be able to take out private health insurance
3 - I don’t think so, checkout the Citizenship threads in this board Ref: connections with PT
4 - you won’t be able to get it (with NHR) later