My wife and I are now retired and reside in Portugal and have been granted NHR status. We actually have very simple taxes at this time. We both have pensions from the USA. Mine is SSI based and my wife has a small Military pension and another small Dupont pension.
I have several questions.
In filling out the Declaration, I have filled out the Annex, Category H with the appropriate data for our pension income but when I run the ‘Simulator’ I am getting a Tax Rate of 28.5%. I was expecting 10% on our pension incomes with NHR.
Is there some checkbox I am missing to enable the use of our NHR status for tax filing?
I have searched for answers to this myself but it is eluding me.
My other question is, although we were in Portugal most of 2023, our Residency’s were granted in June & August and I changed our Financas Address to Portugal after my card arrived in August.
So, should I do a Partial Tax Year from August - December starting when I changed our address?
Thanks for any advice here.
I asked my accountant something similar to your second question - I arrived to live in PT in April 2022, having visited since applying for my visa in the previous December, changed NIF address to PT in May/June and don’t yet have a card.
I was told my tax residency started on the day I arrived to stay permanently (ie April) so I reported my income for the whole calendar year, and paid tax in PT on the part arising from April forward under NHR and the period before April no tax was due on non-PT income and I got relief on any tax otherwise due on PT income under the UK/PT DTT (where it was reported on my UK tax return I.e PT bank interest).
Yes.
My first PT tax return was for 2022 after I moved in April of that year. I applied & received NHR. My accountant selected box A resident in continental PT.
