Except for Capital Gains Tax (CGT), Portugal’s lifestyle and its NHR-program has me convinced to make the move. Unfortunately it is a showstopper as I live off online trading gains (such as stocks, commodities, ETFs, cryptocurrencies, etc.).
After hours of reading, it still isn’t clear to me if my online trading gains are taxed under the NHR-program, because:
I am a Dutchman (born & citizenship), currently living and married in Saudi Arabia (under residence permit through spouse) and the NHR-program states that CGT is exempt in case of a DTA ruling, yet the DTA between the Netherlands and Portugal states it’ll be taxed in the country of residence. So I am not exempt through that, right?
The NHR also states that I could still be exempt in case the source country of income has a DTA, yet this is online trading… How do I determine which country is applicable? The origin of the stock?? I trade 100s a year from all over the world… administration would be impossible.
Or do I consider the platform/website’s origin as the source country of income? In that case it’d probably be Israel, yet’ll need to request the website where my account is registered within their company, as they are located all over the world.
I also wonder if the 28% CGT is actually applicable to online retail traders, even if you are local PIT citizen. It seems extreme, considering the Netherlands only taxes 1.2% wealth tax and no CGT, except if you owned 5%> of a company’s total stock. And the Netherlands is one of the highest taxed countries in almost all citizen aspects. Any Portuguese investors / traders here to comment?
And if (non-Portuguese) stocks and such are taxable (CGT), it would be a huge downturn for exactly the group they are trying to attract with the NHR-program… most retirees and high payed specialists will have a stock-portfolio or something of the like. It seems illogical to tax that and lose their interest, right?
Lastly, even if CGT is applicable despite above queries, how would Portugal know about my online trading gains as Cryptocurrency is not taxed and I can claim I’ve sold crypto, even if I’ve also traded stocks and other securities?
Hope you can help me out here, as I’m in love with the idea of moving to Portugal and it’d be a shame if this silly tax would stop me.