Hi - my searching of these forums gets me two very different opinions (sources below) on the following question…
If I have ‘old’ NHR 1.x and PT tax residency + tax residency in another country with a PT Double Taxation Treaty, does PT tax my taxed-at-source non-PT wages?
no, in ALL cases
no, but ONLY if your non-PT wages are from a ‘high-value occupation’ as per old NHR (e.g. scientific, artistic, or technical professions)
yes, PT will tax your non-PT wages for the percent that they are HIGHER than the source country (e.g. UK source taxes at 40%, PT taxes at 48%, so after foreign tax credit you pay PT 8%)
I’m specifically interested in UK-source/taxed income, and if PT will be expecting a cut too.
@tommigun (researched the UK/PT DTAA) and @mikemuks62 (actual PT filing experience with US-sourced income) say no, but I’m not sure if they meant (1) in all cases, or (2) only for ‘high-value occupations’
@edandmegan’s tax advice was a bit of (2) and (3), while garrett figured it was (3)
I lean towards @mikemuks62’s actual experience, but if you’re around Mike could you please clarify the high-value occupation question?
Also anybody else have actual experience filing PT taxes with non-PT wages?
No, PT does not tax already taxed-at-source non-PT wages:
…or Yes, PT will tax you on any higher difference?
Hi I am still around as still waiting for final approval for my GV. The first test is are you in Portugal for more than 185/6 months in a year? That is one of the major tests on how your wages are taxed. Initially I had unknowingly set myself as tax resident in Portugal even though I was not living in Portugal. However, only my rental income in Portugal was taxed (and taxable) in Portugal. None of my US earnings was taxed in Portugal as I was paying taxes here and did not live in Portugal for more than 6 months. Although, I had to show them my worldwide income, salary, interest etc. etc. I did not have to show any of the “high value stuff……”.
Because of my tax residency situation I had the NHR. Therefore, the first question is where are you physically residing and earning. Once that is determined we can answer the other questions.
Hope that helps
Your non-PT employment income is exempt from PT taxation under NHR if it is already taxed at source. ‘High-value occupation’ criteria is for your PT-based income.
(And yes, I did file my tax declaration earlier this year in PT.)
Thanks @mikemuks62, @tommigun and @tkrunning - real-life experience is what I hoped to hear, as there’s some very confusing stuff out there!
My work is done old-style, in an office in London (UK). Due to Brexit and no GV yet, I am still in the UK more than half the time. Things hopefully will change next year.
Then you are truly a tax resident of the UK. Like my case in 2022 and 2023. Then I changed my tax residency back to the US as GV delayed.
As mentioned, while I showed as tax resident in Portugal, I had show worldwide income in my Portugal tax returns but only taxed in my rental income as I lived more than 6 months outside Portugal.
Spanish tax authorities increase inspections of people changing residence to Portugal.
The Portuguese Tax Authority (AFG) is now monitoring taxpayers from the neighboring country [Spain] who moved to Portugal starting in 2021, since tax debts expire after four years, explains Javier Fernández, the tax expert responsible for the tax department at DPG Legal. In other words, those who moved that year filed their tax return in 2022, a year in which the statute of limitations expires in 2026. " We will start to see cases from 2023 and 2024 within a few years ," indicates the tax expert, quoted by the Spanish newspaper.
Since the implementation of the Non-Habitual Resident (NHR) regime, many Spanish digital nomads and pensioners have moved to Portugal, becoming tax residents and ceasing to pay taxes in the neighboring country. However, in a resolution dated May 2025, the Central Economic and Administrative Court (TEAC) clarified that all taxpayers benefiting from this tax regime, even if they present a tax residence certificate from Portugal, will continue to be considered residents in Spain if they do not pay income tax in Portugal.
Surely this only applies to income generated in Spain and paid to someone claiming treaty benefits in Portugal.
(The statement that it applies particularly to relocating pensioners definitely implies the income is derived from Spain)
