information from link that was posted above
Guys, my question is: Will NHR be automatically applied after obtaining tax residency in Portugal, or is there another process and terms to enable it?
NHR is a separate application. You must first become a tax resident, and then apply for NHR afterwards.
So I moved to Portugal, became a tax resident, and got the NHR.
But I need to come back to Germany for a year or so.
What do I do next so that I donāt lose the NHR?
My rental agreement is registered at Financas, will they find out if I cancel the contract? How long should the contract run? Any experiences with this scenario?
Check with your tax advisor, but I believe you can pause NHR temporarily. It doesnāt stop the 10 year clock ticking down though.
Hey all, what is the end-game on an ARI investment? By this I mean the PT tax consequences vz non/NHR.
Say the ā5ā years is done, and Iām moving towards permanent residence or citizenship. Point being, I want to divest my ARI investment. It has done its work. Now what? How is PT going to look at it taxwise?
If Iām not yet a tax-resident, maybe the question is moot (can someone confirm?).
But if I am a tax resident, what happens? NHR vs non-NHR?
I believe a gain on an asset in Portugal, whether real estate, shares or other securities, will be subject to capital gains tax, currently 28%, regardless of whether youāre a Portuguese resident, a non-resident, or have NHR status.
How that works for your domestic tax affairs then depends on tax treaties.
Also, the recent skymiles change was a good thing. It meant the people paying to fly first class and/or delta one are actually being rewarded, instead of earning status at the same pace as people doing a bunch of $50 legs. Status for mileage never really made sense. Status for how good ($) of a customer you are does.
And the delta skyclub cannot get any worse, so good for delta for trying to fix it.
Well, exactly. āGoodā is a matter of perspective.
Delta clearly feels that the changes are good for them.
If you regularly pay for first class domestic, and are tired of having first be filled up with non-rev, and earn so many millions of miles that it doesnāt matter that bizclass europe oneway is 360000 miles for what is truly a sub-par product (personal experience), then of course it benefits you and you like the changes and will stick with Delta.
If you think saving $50/flight for a free bag is worth your $100/yr card fee and miles are less important to you because youāre unlikely to ever make enough to matter, then you donāt care and may stick with it. I might question your choice but I am not in your shoes.
Personally, I can get 2-3x points on other cards, then use chase and citi miles to fly Lufthansa, Air Canada, Turkish, Swiss, Singaporeā¦ all of which represent far, far better value and service than any US carrier could dream of (again, extensive personal experience). Thus, I no longer see value in continuing to interact with Delta - they made it clear to me they donāt want or value me, so I have bid adieu and taken my considerable spending elsewhere. I do expect this new avenueās value to get torched eventually as well, but I will enjoy it while I can, then make new choices based on how things evolve.
I am sad that a 20+ year relationship has ended this way, but no point being bitter.
Portugal is offering you the same choices. You might see them as not very good from your perspective. They, clearly, do not agree with you. Itās their country, all we can do is take it or leave it. Frustrating, sure, but this is how many things in life go. Though I guess I do understand being upset over it.
It occurred to me this morning that ending NHR isnāt even about GV. Itās a lever to apply against D7 flow.
Notice there is still a tax break for certain classes of people. Itās very restrictive, but I suspect that is as much as anything a starting position for negotiation - not that PS needs to necessarily but still, you can add a few categories back or extend it a bit more or whatever. But notice what isnāt in there at all, and what is the biggest break of all:
Pensions.
Consider how many people move to Portugal who are retirees on Social Security or other pensions who scrape by in the US and move over sometimes explicitly because of healthcare and invariably due to the low (to them) cost of living. They move over, get to use SNS for free, pay 10% tax, and live comfortable lives and drive up the price of restaurants and rentals. Even if they do pay for private, theyāre still using SNS for at least some things, and paying almost no tax. Thatās gotta gall the locals. It wasnāt a big deal when it was a few people, but itās not any more.
How many of them are going to think twice when they learn they have to pay regular Portuguese tax rates?
You can argue itās self-defeating, that they are cutting off huge foreign-source inflows. Maybe they just donāt care. Thereās already problems in deploying all the cash thatās flooding in from NGEU and GV - consider the challenges some funds are facing in finding businesses to invest in. Tourism is bringing huge cash and straining the systems and thereās a shortage of workers (and note that D7s often arenāt there to work).
Thereās other imperatives besides money. My Portuguese friend is pretty explicit about that - he has a job, he makes decent money, but enjoying life is far more important to him. Also remember what someone else said about āenvy of those who are doing betterā. I donāt know how real that is, but itās certainly a human enough trait. Itās fine when itās only a few people. That changes when itās being continually slapped in your face because theyāre everywhere.
Weāve been talking for years here about GV not being the problem but D7. Well, here you go. Talk about a door slamming shut. We complain that we donāt feel welcome any more. Well, exactly. We arenāt. We want to move there, pay up like everyone else. We just have to suck it up. It was bound to happen eventually.
For sure a lot of immigrants are apoplectic about the end of NHR . I am not one of those mainly because I am not near retirement age, and I from a country that will tax me regardless. But consider that there are multiple layers to this . The Portuguese hospital system is in chaos and doctors are striking. What group of people uses health care more than any other? Retirees. I am not suggesting that PM Costa has thought this far ahead but it all makes sense .
I actually think a more reasonable explanation is that the government is reviewing wholesale all the magnets bringing people to Portugal and trying to tamp them down . Consider what they are proposing now with Sephardic Jewish descendants . They are targeting everyone .
There is no question Portugal wants young people willing to work in Portugal esp skilled persons but they will take unskilled also. Old people? , maybe they arenāt wanted anymore ā¦
Almost no country wants retiree immigrants, just doesnt make sense to take people who are done being productive and in the phase of life where medical needs increase dramatically.
(Unless they are wealthy, thats usually the caveat with most things.)
This is simply not true. There are dozens of countries that have specially developed retirement visas to attract retirees. And they donāt have to be rich. The requirements are usually around $500-2000 in monthly income. As an example, there are hundreds of thousands of American retirees in Mexico under their Pensionado retirement visa program.
Definitely not true. There are retiree programs everywhere. Not always the same tax advantages, but many of these locales have lower taxes so it isnāt so much an issue. Costa Rica, Panama, Mexico, Ecuadorā¦ of course for many of these you donāt get public health. Costa Rica does have a public systemā¦ but not only are you allowed to use it, you are forced to pay a monthly fee for it as any other citizen does as part of the terms of your permit whether or not you choose to use it, and if you donāt, you get kicked out of the country. So itās fair in that sense and no one complains about freeloaders.
Of course, āwealthyā is relative - someone on US social security is wealthy in many of these places.
I had a meeting with the tax guy in my attyās office and he indicated that you need a residence (lease or owned) that you indicate is your primary residence for tax purposes in Portugal. if a lease it needs to be at least 183 days long. Once they approve that as your tax residence , THEN you can apply for the NHR which an automated process hence is swift
So no need for a visa or Sef appointment? Can I get a contact for this attorney?
Thanks;
that is correct. You can pause the NHR but the 10 year NHR clock is fixed once you start it. If you start in 2023 it ends in 2032.
presumably you are somewhere in the process of getting residency.If you are in the country then you have a visa
Do you know how to get tax residency with a rental agreement as an EU citizen? Is it possible to do everything online?
No I think you have to go get a certificate of some kind, I canāt remember what itās called sorry. Probably better asked somewhere other than the GV forum, as most arenāt EU citizens here. 
I believe the document you need to start the process is a āCertificado de ResidĆŖncia na UniĆ£o Europeiaā