Income is reported in different categories: A) Salaries, B) Sole Traders, E) Capital, F) Property, G) Capital Gains and H) Pensions and is taxable in Portugal regardless of its origin. For non-residents, only income actually arising in Portugal is subject to assessment.

If you let out furnished accommodations to holidaymakers on a short-term basis, you are engaged in tourist services (Category B) and should have already acquired a Local Lodging licence. This type of business activity receives special treatment under the “Simplified Regime”. You are taxable on only 35% of your invoiced income.

For many expatriates, owning a place in the sun is part of the dream retirement in Portugal. Whether it is a holiday home or somewhere permanent, it is important to look beyond the price tag and understand all the tax implications.

Income is reported in different categories: A) Salaries, B) Sole Traders, E) Capital, F) Property, G) Capital Gains and H) Pensions and is taxable in Portugal regardless of its origin. For non-residents, only income actually arising in Portugal is subject to assessment.

Long-term property lets (usually having a rental contract between landlord and tenant) are included in Category F and are reported on “Anexo F” in the second filing period in May. This activity is different from Short-term Holiday Lets which are seen as a business activity called “Local Lodging” and reported on Annex B - Self-Employment Income.

Income is reported in different categories: A) Salaries, B) Sole Traders, E) Capital, F) Property, G) Capital Gains and H) Pensions and is taxable in Portugal regardless of its origin. For non-residents, only income actually arising in Portugal is subject to assessment.

When assessing Company profits, taxation occurs in a two-stage process: first, the Company pays Corporate Income Tax on its profits (IRC), then Shareholders pay Individual Income Tax on these distributed profits (now called dividends in IRS). This assessment procedure is referred to as “economic double taxation”.

Pensions are often the key to long-term financial security, so it is crucial to take extreme care when deciding what to do here. Expatriates have the added complication of factoring in the tax rules of two countries, as well as the potential for Brexit to limit the opportunities available.
So what are today’s options for Britons living in Portugal?

Renewed risks of no-deal Brexit weakens Sterling - Staying on top of the latest currency news can help you time your transfers more effectively, so find out what you should be looking out for over the next couple of weeks…

Income is reported in different categories: A) Salaries, B) Sole Traders, E) Capital, F) Property, G) Capital Gains and H) Pensions and is taxable in Portugal regardless of its origin. For non-residents, only income actually arising in Portugal is subject to assessment.

Taxation of bank interest was harmonised throughout the European Union with the introduction of the EU Savings Directive. The following situations reveal which tax options exist and the implications of each scenario.

IIMG is a bespoke Investment Management advisory company operating globally who have a presence in the Algarve and Lisbon. We work closely with Expats who reside in Portugal and hold assets outside, advising them on all manner of tax efficient investment options and ideas. We believe that clients should be speaking to 2/3 advisory firms and not just to listen to one opinion, we'd like to ask the following questions...