Information

Tax Affairs

Tax Affairs

 

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At All Finance Matters they aim to simplify what others find difficult, offering peace of mind to their clients. Relax while they take care of all your tax issues.

 

Our Services

 

Fiscal Representation

Once you have found your perfect property and your offer has been accepted, your first step is to instruct a lawyer. For local expertise please see our lawyers page. AFM's basic Fiscal Representation services include:

  • Updating Beneficial Owners with Offshore company obligations and relevant legislation
  • Clarifying pertinent procedures and regulations with the Portuguese Tax Department
  • Liaising between the Tax Authorities and the Offshore Property Company
  • reporting to Beneficial Owners and Directors regarding company status in Portugal
  • Receiving and handling tax correspondence, including payment of local tax bills, on behalf of the company
  • Completion and submission of annual income tax reports (if there is income to declare, such as rentals, capital gains, etc);
  • Obtaining fiscal numbers (if necessary).

 

Living in Portugal – Non Habitual Residence Programme

Are you planning to move to Portugal? What if we told you that there is a scheme for new residents that can provide substantial tax benefits, including a total tax exemption on your pension?

The NHR scheme is one of Portugal’s best kept secrets and can make Portugal a tax haven for you and your family.

The NHR scheme was approved in 2009 and assigns certain tax advantages over a period of 10 years. It was designed to promote Portugal and attract foreign pensioners to live here, but also to promote the transfer of residence of entrepreneurs, investors and specialized professionals.

Aspects to be considered, when thinking about relocating to Portugal:

  • Wealth Taxes.
  • Municipal Property Transfer Tax
  • Municipal Property Annual Tax

 

Accountancy Solutions

In AFM, we offer different accountancy solutions tailor made to our clients’ needs. Our real expertise is working closely with our clients, to assist them finding the best ways of improving their performance and helping them to grow their business with us.

We provide all necessary information for the intelligent management of your company, in addition to creating professional support we provide customized solutions for each specific case.

We also evaluate your case and create a service that meets the needs that the company has towards the market. We provide help in corporate and personal Accountancy, Payroll services, Business Start-Up Consultancy, Management Advisory Services and Tax dispute assistance.

Please feel free to visit us for a friendly chat in Tavira, Rua 1º de Maio, nº 58 and find out more about the tax strategy that might be more effective on your specific situation. If you prefer, you can contact us by telephone through +351 281029059 or go directly to our website: info@allfinancematters.com

 

Inheritance Tax

AFM can help you!

Many people are unaware of the tax savings available, until they seek for professional advice. Please feel free to contact us today to discuss your personal situation and see whether you qualify for the Non Habitual Residency Regime. We can guide you through the whole process and make the application on your behalf. We will also prepare and submit the tax returns on your behalf.

Move to Portugal and pay no tax on your pension

If you are planning to move to Portugal, or at least thinking about it we have good news. The non-habitual resident (“NHR”) taxation regime; a scheme for new residents that can provide substantial tax benefits, so much that you may discover that Portugal is a tax haven for you.

The non-habitual resident (“NHR”) taxation regime is becoming very popular, so popular that last year the number of tax payers under the NHR has increased 44% in the last year and it’s expected to increase again this year. This is remarkable, when we think that in 2009 there were only 16 citizens registered as NHR and recently it was announced that they were over 10 thousand, a number that is increasing all the time

Rental Licenses

The Portuguese real estate marketing is attracting many foreign investors and many of these investors are looking for good rental yelds, but before investing on your rental property or renting out your property in Portugal you should plan ahead and find out the best way to structure your real estate investment, in order to be as tax efficient as possible and also to minimise any future capital gain tax.

If you are considering renting your property, there are several questions that you need to be aware of in order to avoid any problems with the Portuguese licensing and tax departments. If the above situation appeals to you, please contact us, this suggested structure is very tax efficient and is very popular amongst our foreign investor clients, however it’s not the only available solution and others may be more appropriate. We aim our expertise and know-how to work in your benefit, keeping you tax compliant while paying only the legal minimum.

 

Mortgages

In AFM, our qualified and experienced consultants make sure that you have all the help you need so that the mortgage application is a process stress free. If you require further information, you can visit our website on www.allfinancematters.com 

There is a Capital Gains tax in place in Portugal on the sale of a property at a rate of 28% for individuals and 25% for companies (non-residents). If the money from a sale is re-invested then only 50% of the net taxable income will be subject to capital gains tax. To calculate the taxable gain, you take the selling price, minus the acquisition costs, any costs incurred during the transfer of ownership, and also any property improvement costs that have incurred within 5 years of the sale.

 

There are a few exceptions to Capital Gains Tax in Portugal:  

  • If you are a tax resident of Portugal (domiciled in Portugal) and you are selling you primary residence in Portugal and you buy another residence in Portugal. Importantly this rule applies for sales that are with 3 years after, or 2 years before.
  • If the property in question was first occupied before January 1989 in your name.
  • If you decide to reinvest the monies made from the sale of your Portugal primary residence into another primary residence in the EU, you are then able to roll over the costs.
  • www.ptag.pt

 

 

What is it?

The non-habitual resident (“NHR”) taxation regime came into force in Portugal in 2009 and is proving very successful at attracting individuals of independent means, pensioners and certain skilled professionals to establish residency in Portugal for tax purposes, while not being subject to any minimum or maximum stay requirements. In addition to the non-existence in Portugal of wealth tax, or of inheritance/gift tax for close relatives, the NHR regime essentially grants qualifying individuals the possibility of becoming tax residents of a white-listed jurisdiction, whilst legally avoiding or minimising income tax on certain categories of income and capital gains for a minimum period of 10 years.

 

Concept

In order to qualify as a non-regular resident, it is necessary:
 
a) To be a tax resident in Portugal: A tax resident in Portugal is someone who remains in Portuguese territory for more than 183 days (consecutively or not) per annum, or who having remained less time, as of the 31st of December of that year, has the housing conditions that show that they intend to maintain and occupy their property as a residence (for 183 days per annum) the following years.
 
b) Not to have been deemed as a tax resident in Portugal in the last 5 years prior to the application of the regime: This regime also applies to migrants who want to return to Portugal. The taxable person deemed non-regular resident acquires the right to be taxed as such during a period of 10 consecutive years, from the year of their registration as a resident in Portuguese territory, having to comply with the requirement of residence every year.

 

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If you prefer, you can contact us by telephone through +351 281029059 or go directly to our website: info@allfinancematters.com

Relax while we take care of all your tax issues.