NHR and tax

Yes.  I am a recent NHR  in Portugal and have a couple of properties I rent in UK.  The rental income is taxable in UK but not in Portugal.  However, you can set this income against your annual UK Tax Allowance - approx £12k per annum.  You need to inform HMRC and complete a tax form which allows your income to be paid by tenants without having to withhold taxation from rent payments.

Thanks for this. So what you are saying is that you can still claim your personal allowance against UK income even if from rentals, thus rentals from UK income are taxed in the same way as income from other forms like interest. So then where does the benefit of the NHR come in with respect to various forms of income coming from the UK such as private pensions, dividends from UK ltd companies and salaries from UK companies?

Any income from rental property you own in the UK has to be taxed in the UK. This is a rule included in the split taxation agreement between UK and Portugal. Though must still be declared on your Portuguese tax return.
Dividend income and all pensions become taxable in Portugal, so under NHR  are not taxed for ten years.
You are best to use a local accountant ours only charges €100 a year to complete our Portuguese tax return.

Yes.  I agree with all of that.  I have a private drawdown pension and a company annuity - both tax free under NHR.  As will my state UK pension.  If public sector pension then I believe it is not tax free.  Neither would any employment income I THINK.  There is an excellent up to date book called Living in Portugal by Blevin Franks that will explain all.   I would be eager to know the name of your accountant as I have yet to arrange one....thanks.

DameAwkes wrote:

Any income from rental property you own in the UK has to be taxed in the UK. This is a rule included in the split taxation agreement between UK and Portugal. Though must still be declared on your Portuguese tax return.
Dividend income and all pensions become taxable in Portugal, so under NHR  are not taxed for ten years.
You are best to use a local accountant ours only charges €100 a year to complete our Portuguese tax return.

Do you mind to share or PM your accountant contact details ?
Thank you
Darlin

I’m happy to share details of my accountant, but she is based in Ansião so probably not of much use to most people.
Her company is called allinvest   Address R. Alm. Gago Coutinho 25, Ansião, Portugal name Arlete.

Best to ask people in the area you are living, someone will know an accountant.

Thank you Dame’Awkes for your reply

very useful thanks