NHR UPDATE: The Next Tax Scheme For Expats Moving To Portugal
ฝัง
- เผยแพร่เมื่อ 12 มิ.ย. 2024
- If you're considering moving to Portugal as an expat, you may have heard that the Non-Habitual Residency (NHR) tax scheme is no longer available. In this latest vlog as a retired couple living in Portugal, an NHR update, we discuss the new tax scheme for expats moving to Portugal, and how it may affect you. Don't miss out on important information for your retirement or move to Portugal!
00:00 - NHR Gone: What's Next For Expats Moving to Portugal
00:34 - What is NHR Tax Scheme? Is There Still Hope For Expats?
02:19 - The NHR Timeline for 2024 When Moving To Portugal
03:24 - 7 Ways Expats Still Qualify for NHR Moving To Portugal in 2024
06:01 - Madeira, And New Tax Scheme for Expats Moving To Portugal
07:24 - Why Tax Incentives Like NHR Are Important For Expats AND Portugal
08:24 - Why It's Still A Good Idea to Move To Portugal or Retire in Portugal
Thanks for watching! Don't forget to like, subscribe, and share our channel with fellow adventurers seeking to create their own 'Better Second Half of Life!'"
All the best! D & M 🌎❤️
Please consider joining us on Patreon ❤️ - Thank you!: / trackusdown
DON'T BUY A PHYSICAL SIM CARD WHEN TRAVELING! Use an e-Sim - it's easier and cheaper. Here is a referral code to use to sign up for AIRALO e-SIM, the easiest and best e-SIM available. You get $3 off your first purchase: DOUGLA4412
Check out our Amazon Storefront for some of the gear we use, love, and recommend: www.amazon.com/shop/trackusdown
#NHRUpdate #PortugalTaxes #movingtoportugal
![ถ้าพี่วุ้นท้อง แป้งจะท้องไปด้วยกัน !!!! [ดูคลิปเต็มหน้าช่อง] #Short | PANG ORNHIRA](http://i.ytimg.com/vi/FeyEnVMwitA/mqdefault.jpg)
![CAMPปลิ้น | EP.76[1/2] โจโฉเปิดป่าโหดรับโอ๊ต-ป๊อบ รอบนี้พี่เอาจริง!](http://i.ytimg.com/vi/pNg5O7Pf-a0/mqdefault.jpg)
Hi guys. Have been watching your channel for several years since I started investigating Portugal as a retirement destination. Took my wife and (grown) children for a visit at the end of 2022 and we all fell in love with it. Was planning to move there at the end of this year until the announcement about the NHR last October. Although you’re absolutely right about the many advantages Portugal offers, there’s no getting around the devastating impact that the loss of the NHR has on taxes for retirees. Going from 10% to 48% tax on almost all retirement income is an obstacle I’d be surprised any retiree can overcome. Our current destination is France. Although not as attractive as Portugal in several ways, from a retiree tax standpoint, it is better than Portugal (even with the NHR). Living in France with regular visits to Portugal is an alternative I’m really looking forward to.
Hello! Thank you so much for watching our videos over the years. We are glad you find value in our content. The loss of the NHR will no doubt make some change their plans. We would always recommend talking to a tax lawyer to find out your exact situation for taxes in Portugal without NHR. It is a progressive tax , with the highest being 48% on income over a certain amount not 48% on all income. And of course that includes healthcare , which for those paying thousands a month in the US, it still may make sense. That being said you have to do what is best for your situation . France is interesting for sure. Huge death tax- so check into that. For us the safety aspect just isn’t there. Best of luck as you make your decisions!! Thanks for watching and sharing your thoughts. Cheers! M&D
Yay! I'm in one of those categories! Thank you super helpful! 😊
Hello Max! You’re welcome! Thanks for watching. Cheers! M&D
Always relevant and interesting!
Hello! Thank you for watching and for your kind comment. Cheers! M&D
We like the garden furniture. We hope you guys are well. All the best from us.
Hello Rui and family! Thanks - garden furniture Leroy Merlin!! We are doing great and hope you all are as well. Thanks for watching! Cheers! M&D
I really like that outdoor patio furniture 🙂
Hello! Ha ha thanks! Good ol’ Leroy Merlin! Thanks for watching! Cheers! M&D
My spouse and I applied for an appointment for a visa on December 17, 2023. We finally got our appointment for March 14, 2024, which we both attended, at VHS Global office, the intermediary that assists the Portugal Consulate in San Francisco,. Do you think we meet the criteria for NHR? We were not sure but hopeful. We love your channel and watch it regularly. Its a great service for others considering moving.
Hello! Thank you for watching and for your kind words. Please do a consult with a tax lawyer. We highly recommend Fresh Portugal. You can find our link in our tax video we did or simply google Fresh Portugal. They will be able to answer your question with certainty. Good luck!! Cheers! M&D
Excellent and informative update. We are retired Canadians with pension sources similar to your professions. Did you find that the CRA (Canada's tax authority) withheld 15% of your Canadian pensions, per the Tax Treaty between Canada and Portugal?
Hello John! Thanks for watching and great question. Yes the CRA withholds a 15 % withholding tax. We then claim that as “tax paid “ at source on our Portuguese tax return. As it is more than 10% tax, we then pay nothing more on that amount here, as tax was deducted at source and there is a double tax treaty, as you said, between Canada and Portugal. Cheers! M&D
Hey Monique and Doug fellow Canadian here, my husband and I got our residence visa in 2022 and still on the fence to come over because of the steep rise in rent etc. We are coming to Lisbon in April and hope to get over to Madeira. Been to many of the bigger cities on the mainland and we were in the Algarve for 3 weeks last year. Love your videos
Hello! Thank you so much for watching our videos. There are still some decent places with affordable rents to be found. We are hoping to showcase more rentals. Best of luck to you! Cheers! M&D
Thank you for your explanation of the new Tax Set Up in Portugal.
This is not the only country that is moving the Goalpost,some countries in South East Asia are also changing the rules. In the last few years there’s been a lot of talk about Retiring Overseas as it is much-cheaper living in certain countries around the world. Many people have taken the bait,sold everything in their home country and settled in the new one under favorable conditions. A few years down the track,a change of government,better economic conditions and “ SORRY WE DON’T NEED YOU ANYMORE “ attitude.
WE’RE GOING CHANGE THE RULES,BECAUSE WE CAN.
How can that be fair to anyone especially to PENSIONED RETIREES?
In one of the comments,someone mentioned the Tax going from 10 to 48%.
How is that sustainable! These pensioners have sold everything in their homeland,so what’s going to happen to them if they can no longer afford living in their new country? OUT IN THE STREET BEGGING?
I can see this RETIRING OVERSEAS because it’s cheaper,becoming a bit of a trap down the line which could become a DILEMMA/ NIGHTMARE for some people.
Hello! Thank you for watching and sharing your thoughts. To clarify regarding Portugal and the NHR. We knew when we signed up for it that the tax scheme only lasted 10 years. After that we would need to make a decision- to leave or pay full taxes . It is not as simple as taxes changing from 10% to 48%. It’s a progressive tax structure and over a certain amount it can go as high as 48%. Also keep in mind that includes universal healthcare. So these tax incentives and schemes will continue to change and evolve. As we sold everything and moved abroad- we did so full knowing this is the case. We look at it as ever evolving and being open and flexible within our comfort level. Thanks again for watching ! Cheers! M&D
We have to keep up hope for pensioners! Perhaps Madeira and the Azores will do something to make it more attractive to pensioners. Maybe less attractive to those simply trying to profit off the real estate with no real interest in Madeira or the Azores otherwise. Thanks for sharing this video and keeping your ears to the ground for future developments!
Hello Chris! Very well said! Thanks as always, for watching and sharing your thoughts. Cheers! M&D
Can you make a video for the tax incentive for research scientist? As I understand the tax incentive will 20% not 10% as the NHR. so it is not as desirable a program Thanks
Hello! We would highly recommend you reach out to Fresh Portugal and ask your question specifically. For sure it would have to make sense for you. Thanks for watching. Cheers! M&D
Thanks again D&M for another great video! Yes, we qualify for the NHR because of a signed promissory contract prior to October 10, 2023. We have received the final habitation license and will be signing the final deed (our lawyer will be signing on our behalf) in about 2-3 weeks. All good news on the property part. However, the NHR has become a road block for us at this time. Why? Because I was still planning on working through the end of 2025, and in order to qualify for the NHR, I would have to receive passive income (at least three months worth) in 2024 and go through the D7 process. Otherwise, we would certainly pay the 48% progressive tax rate in Portugal and that is not an option for us. So our two options are 1) Retire one year early to qualify for the NHR or 2) forget about the NHR and come over in 2026 on the D7 visa and pay the progressive tax rate. There is a third option and I want to share it with you and your viewers, "THE SCHENGEN SHUFFLE", live and visit Portugal 90 days at a time. For example; spend March, April and May in Portugal, leave for 90 days and go to a NON-SCHNEGEN country either in the E.U. or somewhere else in the world, then come back to Portugal in September, October and November. Take a little bit of work and travel planning, however, the money we would save in taxes would not only pay for these travels, but would allow us to keep more of our monies. The best of slow travel, and living what D&M call, our second half life and living abroad.
This is what I am contemplating for next year as well.
Hello Thomas! Thank you for watching our videos and for your comment. Regarding your tax situation and qualifying for the NHR. We highly recommend you reach out to Fresh Portugal and have an expert/ tax lawyer guide you. There may be alternatives. They would also provide you with exact, precise information about your situation. We had the D7 visa while Doug was using vacation pay and banked time for almost a year- technically still employed. Regarding the Schengen Shuffle. There are those who do it and of course it’s possible. However, in terms of health care you are not a resident of anywhere in Europe, so you would still be paying healthcare in the US ( or if from Canada not qualifying for healthcare as not spending enough time in Canada as a resident to do so) as well as travel insurance, with the high cost of health care in the US, it may just make more sense to pay higher taxes in Portugal ( the tax amount you pay in US is deducted from your tax bill here, and as you said it’s progressive and only reaches 48% over a certain amount) and benefiting from the free healthcare in Portugal and coverage in EU. It is for sure worth running the numbers. We have done slow travel and it can start to feel like you’re always on the move and dealing with Airbnbs…. You would have to give it a try to see if it would work for you! We truly wish you the best of luck as you figure all of this out going forward. Cheers! M&D
Thank you for the feedback D&M, always like other people's thoughts. I have been spoken to Fresh Portugal and one other Portuguese tax professional for expats. In fact, I have another meeting this week with Fresh Portugal and actually the owner Zeev Fisher to look at a couple of other possibilities. We will re-run the numbers again. As far as healthcare, you are correct, if we do decide not to call residence to Portugal or any other location in the immediate future, we would have to carry worldwide healthcare insurance and can only use it in the U.S. (where we are from) on a limited basis.@@TrackUsDownInRetirement
I spoke to someone and they said because i leased a property in portugal in late 2022/early 2023, i'd be ok to still register for this?
Hello! You very well could be. Definitely talk to a professional. We recommend Fresh Portugal. Good luck! Thanks for watching and commenting. Cheers! M&D
Hi Monique and Doug, my wife and me started the process of citizenship by family descendant in 2022 and will be granted in 2024, does the NHR applies to us?
Hello! That’s a great question. We highly recommend you reach out to Fresh Portugal and have an expert guide you. You may just qualify- either way you would know for sure. Thanks for watching! Cheers! M&D
Hi is the job software architect /engineer qualified for the new regime
Hello! That’s a great question. Please check Fresh Portugal website or even do a consult to find out for sure. Thanks for watching! Cheers! M&D
I was planning to move there this year, but I end up meeting my future partner who is from Colombia. 🇨🇴 Due to the high price of accommodations there, I thought it would be a good idea to move to Colombia, take advantage of our no mortgage there, and start saving up for a down payment on a condo in Portugal 🇵🇹 to keep our monthly price lower wherever we decide to live. We both agreed that Colombia is not going to be our permanent home. I do want to feel comfortable walking around looking at my cell phone without worry about getting robbed. So for now it will be a temporary inconvenience. I am already in a Visa process and hoping to be there in June, and hopefully Portugal in two years depending on changes they make before then.
Hello! Thanks for watching and sharing your story. We love the way you are taking steps moving forward and enjoying the process. Best of luck to you on whatever you decide. Cheers! M&D
I have a question. So after the NHR ends for you, will you be retiring in Canada?
Hello! After NHR ends we will have to make a decision. Probably well before it ends. We’ve heard about half the people who end NHR stay and half move on. We could return to Canada full time or half time and keep our place here, but no longer be residents, or move to another EU country and take advantage of their tax incentives or simply stay and pay taxes here. For us it also depends on our boys and our extended family, their situations …. For us it’s a big decision down the road. Thanks for watching ! Cheers! M&D
@@TrackUsDownInRetirement This sounds like a good plan! Thank you for the quick reply! ☺️
I have read that if you are receiving a government derived pension, worked for federal, state or local government in the United States you don't pay Portuguese income tax because of a treaty between the United States and Portugal
Hello! I’m not sure about that. The USA, Canada and UK, all define “ government pensions”differently in the sense of the agreement with Portugal, which pensions it covers etc. For us , we thought the same about Canada , but it turns out we had been reading a UK blog and their government pensions are always taxed in the UK and Portugal doesn’t tax them even without the NHR. We thought our pensions would be the same. However our pensions in Canada , which we call “ government pensions” would be taxable in Portugal if we didn’t have the NHR. As we have the NHR, we pay a 15% withholding tax at source , so that is “ deducted “ from the 10% tax we would pay on our pensions in Portugal under the NHR and since there is a Tax Treaty between Canada and Portugal, no double taxation, and we’ve already paid 15 % which is more than the 10%, we pay nothing here, for now. After NHR, that 15 % would be decucted from whatever tax bracket we would fall into. Super messy. Best to get professional tax advice for your exact situation. We recommend Fresh Portugal. 🇵🇹 Best of luck to you! Cheers! M&D
@@TrackUsDownInRetirement Interesting maybe Canada and the United States have different provisions when it comes to government derived pensions
Perhaps they do. Definitely check into it!
I’ve read that the government pension applies in Spain, not Portugal
Confusing, NHR but moving? Moving sounds like residency thus, HR tax rate. I’ve been hearing/reading 10% on all pensions.
Hello! Thanks for watching. Not sure what you mean by your comment?? Our tax rate for our pension is 10% with NHR. Since we pay 15% in Canada , we then pay nothing to Portugal under the dual taxation agreement. Cheers! M&D
@@TrackUsDownInRetirementHi, that’s what I thought! We’re taxed in the U.S. more than 10% hence we don’t have to pay any taxes in Portugal. This will be our first year filing in Portugal, but my compatriots keep harping that we must pay 10% to Portugal. I’ve gone mad trying to find an accountant who knows but no such luck so far. Any suggestions? We are under the NHR too. I’m glad I read this comment, I feel I won the lottery, well at least I didn’t lose 10% lol.
Hello! Maybe they file Portugal taxes first and pay then deduct from USA? Honestly don’t know. I thought you always filed in USA first? We used Fresh Portugal in Lisbon for our taxes. It’s nice to have a year under your belt and know your own personal tax situation - there is so much misinformation - best to talk to a professional. We have a link to Fresh under our tax video or you can google the website. Very professional. Cheers! M&D
Hi, yes, we file US first. No way out. However, the info that I have coincides with the one you have concerning US taxes. EU countries are a different story. I can’t fire Uncle Sam. I took note of the company you use. The misinformation is awful, and plenty, true. Thank you!
what is it like for europeans moving to Portugal ?
Hello! Europeans can live anywhere in Europe, you would become a tax paying resident here in Portugal. When there was NHR, Europeans were eligible if they had not been tax residents of Portugal the last 5 years. Thanks for watching! Cheers! M&D
What does NHR stands for??
Non-Habitual Resident (NHR) Tax Regime
Hello! Non Habitual Resident. Thanks for watching! Cheers! M&D
Hi,
Thanks for the update. I have a question regarding your phone. Which company do you use and do you have any suggestions? We need to keep our current phone numbers. Thanks
Hello! We use Meo a Portuguese service provider here, and have only a Portuguese phone number now. We did keep our old one for a bit, but have worked around it and no longer need it. Sometimes it’s a little more complex when getting a verification code or 2 step verification but there are ways around it. We do know people who have kept their phones from the US or CND for other reasons. Thanks for watching! Cheers! M&D
We know life passes so quickly-we've been looking at what life will be like post-NHR in 7.5 years. Our accountant emailed us an estimate of our tax liability; it made sobering reading.
Hello Tinglestingles! Good to hear from you! We love the way you are already thinking ahead and researching what that would look like for you. We do think it depends as well on the cost of healthcare -depending on one’s home country and factoring that in. For us from Canada, we will most likely return to being a resident of Canada and coming to our home in PT for the allotted time ( having Portuguese citizenship but no longer residence) or relocating to another EU country with our Portuguese Citizenship and taking advantage of another tax scheme. Time passes quickly as you say, and also many things can change over the course of 7 years. Like you, we are considering alternatives. Thanks as always for watching and sharing your thoughts. Cheers! M&D
@@TrackUsDownInRetirement We have applied for another residency, a plan B. It is also a country with a great standard of affordable healthcare. We recently had an unfortunate negative incident following the recent election. It feels like we are now less welcomed here than we first thought.
@@tinglestinglesIf I may ask what happened after the election
@@Pauln71 now been a few of anti-foreigner incidents locally - one directly affecting us and other people have noticed a different attitude of local people to 'us'. Perhaps perceiptions have changed. We are not used to being shouted at, while walking in the local park. We wonder if the higher voting (20%) for Chega! has made a difference? Yes, we are ignoring but were still unsettled.
@@tinglestingles Thank you for the response. My wife has lived in Europe twice but the last time she was there was 25 years ago. I try to tell her that the political climate is changing over there. Chega is a huge concern of mine. It seems like they are growing in power with each election. I don't want to move to a country that does not welcome or even tolerate my family. So to hear what has happened to you folks and thanks again for your response
Thank you very much for this video. We will be moving to the island on May 26th to start our “second half of life.” I will be in touch to maybe grab coffee. My wife is a teacher/administrator so I’m sure it would be fun to compare education in Canada vs the US. Love your informative videos so keep them up. Kevin
Hello Kevin! Thank you so much for watching our videos and we are so happy to hear that you’ve found value in our content. Congratulations on your upcoming move to Madeira! Very exciting! We will see you here! Cheers! M&D
This makes no sense... retirees are pure cash coming in. Excluding us makes no sense because we don't occupy jobs. SMH
Pressure from EU, Brussels. They were taking revenue away from other EU countries.
Hello! Yes exactly makes no sense, as we are just spending here. 😊But other EU countries didn’t like that their citizens were spending their retirement dollars in Portugal, as Portugal had made it so attractive to do so. It’s more about those retirees than North Americans retirees. Thanks for watching and sharing your thoughts. Cheers! M&D
When there is no tax incentive, Portugal can only be a good vacation place.
Hello! It’s interesting that many people are running the numbers and still choosing to come to Portugal. There is a lot of misinformation out there and all said and done, including health care, it still makes sense for many even without the tax incentive. 🤷♀️I guess we will see over time how it all sorts out. We ourselves will have to make that decision down the road. Thanks for watching and sharing your thoughts. Cheers! M&D
With all due respect, the standard of health care is definitely not en par with other western/ european nations. Perhaps it was ,it isnt even close now.
I have experienced hospital/ health care living on different continents but Portugal's health care has plummetted and very hit and miss, definitely not what is spruiked by Vloggers.
I would not have an elective surgery done in Portugal and my background is medical. I had emergency care and it was appallingly sub standard.
Even if your health insurance ,allows for top coverage, choose Amman Jordan in Al Abdali private hospital instead.
World class health care.
The Specialists in Jordan are so far ahead in medical specialisations, they leave Portugal's medical system for dead.
Hello! Thanks for watching and sharing your thoughts. That has not been our experience at all. Many other expats - Americans and Canadians that we’ve met, and ourselves have had excellent experiences here with health care and Portugal continues to be highly rated. Interesting that you prefer Jordan. Thanks for sharing your thoughts. Cheers! M&D
I've read articles at the beginning of the year that there was an exception for Madeira and the Azores. Was expecting this video to cover it. Hopefully these autonomous zones actually use their autonomy for once. I recall that the governments of these two regions lambasting NHR cancellation. I'm glad that this new "far right" government was elected in Portugal. Lower taxes is something everyone in Portugal needs, not just foreigners.
Hello! Yes we will have to wait and see if they actually use the autonomy given to them. We have our fingers crossed. 🤞 We also would love to cover that announcement in a video! Thanks for watching! Cheers! M&D
Surely all of this is irrelevant given the Socialist government that did away with NHR has been voted out, and a new PM elected from the centre right PSD. Expect changes on the tax front. The new government won't want to make Portugal unattractive to foreign buyers or investors. They don't share the 'bash the rich' mentality of the Socialists. The latter would happily bankrupt the country if it meant we were all equally poor and miserable.
Hello! Thank you so much for watching and sharing your perspective. Very interesting- we will wait and see! Cheers! M&D
There needs to be some kind of parity for expats vs the Portuguese population. Portugal doesn't need part time expat real estate speculators that price out the local population
I'm having the hardest time - basically seems no one can say - to determine if NHR will be grandfathered to official Golden Visa application in fall of 2022, and still not even looked at by SEF/AIMA despite their (Portuguese law) obligation to approve or deny within 90 days. Current talk, yours included, suggests the NHR window is open for 2024.... but it seems highly likely AIMA will be so ludicrously slow that the application probably still won't be dealt with before the end of 2024. Any ideas if allowed in 2024 becomes allowed in 2025, 2026 i.e, until AIMA gets around to process a valid 2022 application?
Hello! We understand your frustration trying to get clear concise information that is relevant to your exact situation. It’s super difficult to navigate. We highly recommend you reach out to Fresh Portugal for a consult and get current, clear information from a tax lawyer. You will feel so much better hearing from a professional and finding out exact information regarding your situation. You can try this link or simply look up Fresh Portugal online.
calendly.com/dirk_fresh/30min?month=2023-02
Best of luck to you. Cheers! M&D