NHR and Golden Visa

Hi Alan,

Have you considered a D7 Visa instead as its a lot cheaper to obtain and sounds like it would fit you. We are going through the same process, and also from the UK.

I am yet to research and consider what to do after the 10 years, so any findings, please share!

Hi.

Thanks for reply.

I already have Residency - and NHR - so not sure what D7 would give me and that, in itself, does not confer Tax-Free incentives as you receive from "add on" NHR or Golden Visa.

Continuation of Residency after the 10 year term of NHR isn't the issue for me as it is likely to be granted - and if not, I guess there are other options in any case.

It's the ability to take out GV after NHR that's the issue that I have.

Also, for example, if I already had a €400k valued property in Portugal at time when NHR expired, would the purchase of another €101k valued property meet the minimum €500k investment requirement ... or would I need to sell and repurchase another property as a "new" investment before I met GV needs?

Perhaps, even, if I was a prior Resident then Portuguese Authorities would require an ADDITIONAL €500k investment.   I doubt that, but not sure after reading the GV terms.



Regards.

It is possible to combine the Golden Visa (ARI) with the Non-Habitual Resident Status (NHR).

The Golden Visa (ARI) has several advantages, but not necessarily tax advantages...

In cases where the citizen has not enjoyed the right to be taxed under NHR in one or more years of that ten-year period, he or she may continue to enjoy the same right in any of the remaining years of that period, provided he or she is again considered to be resident in Portugal.

Thanks Jonny.

On that last part, can I clarify that position is within the NHR alone by itself?

I understand that, for example, should you achieve NHR and reside under 5 years in Portugal, then reside elsewhere immediately thereafter for another 2 years, that you are then able to return to Portugal and retain the benefits for another THREE, but not 5 years.
(10 in total - you lose the 2 years, it cannot be rolled over and continued)

And, ah yes, I had previously thought that Golden Visa had the similar tax (free) advantages as NHR but that it was an alternative route for non-EU members with resources.

Just checked - and that understanding was incorrect.
Thanks for disabusing me. 

Appreciated.

Alan.

Hi Alan,
When I have mentioned that it is possible to combine the Golden Visa and the NHR status, I meant having the NHR status, e.g. for 7 years, then the Golden Visa for 1 year, with renewal for another 2 years. ... I am not sure if you can have 3 more years of NHR...(?).

Thus enjoying the advantages of the NHR and Golden Visa for the last 3 years, for instance. Remember that the Golden Visa allows you to acquire Portuguese citizenship and have access to the Schengen area without a visa. And this applies to a citizen from the UK, USA, Canada, Russia, Singapore,... excluding EU / EEA citizens.

I was not referring to having NHR status, for 5 years, then going to live in another country for 2 years, and coming back to Portugal to live the rest of the 10 years. That is not possible .... nor does it make any sense.


Golden Visa (ARI) (source: SEF website)
https://www.sef.pt/pt/pages/conteudo-de … spx?nID=62

Thanks again for the clarification, Johnny.

I am sure that I am not following 100% although, perhaps, a mute point as initially I was attempting to assess if the NHR tax advantages may be elongated by transitioning to GV within the latter stages.

I now understand that is not an option, so at least happy that has been sorted out in my mind.

Again, as an aside, my ntention was not to break up my 10 year of NHR tax advantages by interrupting then continuing on at a later date although everything I had previously read and understood suggested that this can be achieved (just be missing those financial years that you are absent for the 184 days) and continue up until the end of the 10th year.

In fact, I came perilously close to an issue in 2020.
After, essentially, being locked down in Portugal up to and including July, I visited UK with the intention of flying to Asia from 1st September and returning to Portugal nearer the end of last year for another 6 months.

Unfortunately, I was in lockdown up to and including into November, flights cancelled to Asia, Visas impossible to acquire.

It was only in mid November that I received communication from HMRC that the limit of "60 days" over my 90 day maximum for tax reasons would not be revised.

Essentially, I had my Government (Scottish) and UK Government Home Office insisting I don't travel and the Treasury UK insisting if I did not travel than I would definitely infringe my DT requirement and, having remained in UK for more than 150 days (90+60) then they would deem me to be UK tax resident (2019-2020).

At the very last moment, on last and only flight out of Scotland to Faro in all of November, between lockdowns in both countries, I escaped but had to leave my partner behind as a Schengen Visa application was also impossible as all Portuguesr Consulates and Portuguese Embassy in UK were closed.

I don't know how that would have worked out if I had not escaped as, presumably, I'd still be in lockdown in UK right now, no flights out, in breach of both Portuguese NHR (no 184 days this year) with UK HMRC claiming tax from me for last year.

Additionally, UK Taxation laws now ignore all sums above £100K taken from drawdown pension as long as you remain outside of UK Tax Jurisdiction for 5 consecutive years.
Again, should I have broken that rule after having been forced to remain in UK against my free will and without havin enough outstanding NHR years to reset the 5 year stipulation...

Minefield.

The problem is, of course, HMRC would be judge and jury and with little empathy should I wish to contest the point.

I just wonder how many others are going to be caught up in this dilemma.  I note the HMRC Website proudly boast that nobody will be disadvantaged financially due to UK Government's Covid restrictions.

Yeah. Right.

Anyway, close escape.

Regards,
Alan.

Sorry Alan, I think I might have misinformed you in my last sentence....

In cases where the citizen has not enjoyed the right to be taxed under the tax regime established for non-habitual residents in one or more years of that 10-year period, he or she may resume the benefit of the same right in any of the remaining years of that period, provided he or she is again considered a resident for IRS purposes (IRS = portuguese tax system).

This means that in 2019-2020, you would lose tax relief for not having spent 183 days in Portugal, but you would keep that status for the following years until you have completed the 10-year period.

And I think you can enjoy that NHR status again, but with a 5-year gap after the 10 years you have enjoyed that NHR status.

______

https://info.portaldasfinancas.gov.pt/p … 00309.aspx

01-1280 Que direito adquire o cidadão que seja considerado residente não habitual?

O cidadão que seja considerado residente não habitual adquire o direito a ser tributado como tal no período de 10 anos consecutivos a partir do ano, inclusive, da sua inscrição como residente em território português, desde que em cada um desses 10 anos seja aí considerado residente.

Este período de 10 anos é improrrogável. Sublinha-se que o gozo do direito a ser tributado como residente não habitual, em cada ano do período atrás referido, depende de ser, nesse ano, considerado residente em território português.

Nos casos em que o cidadão não tenha gozado o direito de ser tributado segundo o regime fiscal estabelecido para os residentes não habituais num ou mais anos daquele período de 10 anos, pode retomar o gozo do mesmo direito em qualquer dos anos remanescentes daquele período, contando que nele volte a ser considerado residente, para efeitos de IRS.

Yes, Johnny.

That's exactly the way I had previously thought it worked.  Thank you.

In my case I was considering taking the full proceeds of a UK SIPP Drawdown after 5 years into the NHR.

That was lowest risk option as that would avoid any financial tax hit to HMRC if, for any reason, I had to return unexpectedly and stay there (Such as Covid Lockdowns!!).

You can imagine that hit, say, if someone had taken all pension proceeds in advance (say, in year 4), was then effectively forced out of Portugal before the 5th year was completed.
Etc.
Sorted now In any case.
Thanks once again for your help.

Regards, Alan.

Hi, I've recently found a good guide about the Portugal Golden Visa program with a lot of insights and questions answered. There's a topic talking about the NHR program and D7 visa too. If you want you can check it out. Here's the link to the website: Portugal Golden Visa Guide

Thanks Martin.

Yes, I would be interested but I see no link? 🤔🤔🤔

I am on NHR with 8 years left.

Being a long term planner, I am already working out my options and although full residency can be evacquired under certain conditions, I'm bewildered at how and what the Portuguese State may offer - especially after Brexit and from UK - those that come to the end of the 10 year period and don't qualify or attain residency beforehand.

My suspicion is that NHR won't be extended so, if Golden Visa terms aren't sufficiently attractive (especially compared with elsewhere), do previous NHR owners simply sell up and move out rather than being restricted to 90 days in any 180 Schengen Visa rules?

An issue that ought to be clear before I need to choose yet one that will be a large part of my decision of whether to purchase or buy in the next few years.

Regards,
Alan.

Hi, it says [link under review]. I guess expat.com is blocking it until they review it. But basically the website is: portugal-golden-visa with .pt at the end. Hope you can figure it out.

🙏👍.  Thanks Martin.