resident

[colin cheetham]

could anyone tell me the advantage and diadvantage in being a resident.

[Michael Crane]

That's a BIG question.

Advantage? It's nice and warm all year round.

Disadvantage? It's too bloody hot in the summer!

[EMM]

I assume you mean from a tax and admin point of view.

One comment from friends is that it makes life a bit simpler if you are stopped when driving by the GNR.

[colin cheetham]

hi thanks for reply,yes i have been told there is no advantage resident or none resident when it comes to selling your property you will still pay capital gains tax and this applies to offshore companies to 25% as to this being true i do not know,any advice would be welcome,regards colin cheetham.

[kteee]

As a resident you pay less CGT when you sell a property (I think it used to be only 50% of the gain but that may have changed), and if you use the proceeds to buy another property in Portugal within 2 years then you don't pay it at all, it rolls over into the new property

However there are other tax implications of residency, so you need to take advice on your particular circumstances

If you spend more than 183 days in Portugal it is obligatory to take out residency

[shanagarry]

Ktee - that's an interesting point you make - what would be the requirement if you were a resident but spent slightly less than the 183 days in Portugal - spending the balance in the USA, UK and Ireland?

We will be moving to Portugal on a permanent basis in September 2010 but I will continue to work in the countries above. My permanent address will be in Portugal but I will not be there all the time. At present I am a UK resident but with everybody else moving here in the near future I/we have decided to move out to make room for them. I will have business interests in the UK but no residential address.

My question - in a round about way is this - am I better off being a UK resident for tax purposes with no permanent abode in the UK or is being a resident in Portugal more tax efficient

[kteee]

I think you need to take specific advice for your situation

By taking out Portuguese residência you report your worlwide income here for tax purposes and cease to be a Uk taxpayer, eligible for NHS treatment etc (in theory, although I know people who have returned to the UK for NHS treatment)

Whether that is more tax-efficient for you, only a professional can advise

[shanagarry]

I suspected as much - there's nothing straightforward anymore

[EMM]

You will of course pay less to matriculate your car.

[shanagarry]

EMM;

That's another interesting conundrum.

I have bought a new Left Hand Drive Land Rover Discovery (UK registered) which travels back and forth to the UK on a regular basis. It will spend 4/5 months pa in the UK, 3/4 in Ireland, 2 in Spain and the balance in Portugal - where does that leave me as far as matriculation and import in Portugal is concerned?

[EMM]

If you take up residency in Portugal you would benefit from the costs reduction.
I do not think that there is any min time qualification for residency.

I suppose it will all come down to where it isthe most tax beneficial.

[Ellie]

I think you need to take specific advice for your situation

By taking out Portuguese residência you report your worlwide income here for tax purposes and cease to be a Uk taxpayer, eligible for NHS treatment etc (in theory, although I know people who have returned to the UK for NHS treatment)

Whether that is more tax-efficient for you, only a professional can advise

Karen, if we come to stay for 6 months (maybe more) I guess we will have to take out residency?
elliex

[kteee]

It depends how strictly you want to adhere to the law - if you're going to stay for 7 months and then go back it won't be worth it and a lot depends on whether you buy property, want to matriculate a car (although I wouldn't even try!), use the health service here etc

Advice from a lawyer is really the best course for everyone

[widge]

I have bought a new Left Hand Drive Land Rover Discovery (UK registered) which travels back and forth to the UK on a regular basis. It will spend 4/5 months pa in the UK, 3/4 in Ireland, 2 in Spain and the balance in Portugal - where does that leave me as far as matriculation and import in Portugal is concerned?

Somewhere between a gypsy and a bank robber !!!![img][/img]

[suziebear]

By taking out Portuguese residência you report your worlwide income here for tax purposes and cease to be a Uk taxpayer, eligible for NHS treatment etc (in theory, although I know people who have returned to the UK for NHS treatment)

Unless of course, you take up residency here end up working for a UK company, who INSIST you pay UK tax and NI - damned annoying if you ask me! Seems to me like one rule for one and one for another.