Tax

[joeysoap]

I just pay tax in the UK, I give everything to our accountant and say fix that, hope I'm right.

First place to pay tax is Portugal, then you claim this amount of tax paid against your UK liability. If the UK tax is greater you paid the difference (UK tax due less tax already paid in Portugal) , if the UK tax is less than the Portuguese tax then you don't pay any tax in the UK at all.

[Graham]

Just been informed that I can't claim ANY utility costs against my tax bill. I think this is called a reverse starbucks - i.e. I have turned a trading loss into a taxable profit

[e-richard]

Just been informed that I can't claim ANY utility costs against my tax bill.

Could it be that your utility bills are not in your name? (e.g. in the name of the management company or somthing like that ?)

They are deductible, but being Portugal, you do have to get the paperwork right, with the right spelling on the right stationery in the right colour on the right day of the week.

[pato]

I just pay tax in the UK, I give everything to our accountant and say fix that, hope I'm right.

First place to pay tax is Portugal, then you claim this amount of tax paid against your UK liability. If the UK tax is greater you paid the difference (UK tax due less tax already paid in Portugal) , if the UK tax is less than the Portuguese tax then you don't pay any tax in the UK at all.

So!.....the pestle with the pisle is the vessele with the misle.

[cereza]

Just been informed that I can't claim ANY utility costs against my tax bill. I think this is called a reverse starbucks - i.e. I have turned a trading loss into a taxable profit

I've always been told the same Graham. Claimable items are improvements,repairs, painting and management fees but definitely not utility bills.

[Sheila]

It seems odd that you can't claim for electricity and water that your paying guests use! After all if they weren't there your bills would be lower.

[cereza]

It seems odd that you can't claim for electricity and water that your paying guests use! After all if they weren't there your bills would be lower.

Totally agree but this is Portugal

[LICY]

Would it work if we said x is the charge and then water and electric is y?

[RichardHenshall]

My understanding is that if you register your rental business as an activity with Finanças, then you can opt for the simplified ( ) accounting scheme which treats your profit as being 20% (?) of your income regardless of expenses.

However I also understand that to do this you need to have a fiscal representative (if not PT resident) and an accountant, have to register for IVA (and account for IVA) if income is more than 10,000€ per annum and may also be at risk of having to pay segurança social.