Kinetic

Trying to get my head around the taxation question.

25% flat rate to portugal and UK NI?? for people that live in UK or Portugal.... is that correct?? what if you live in Spain or Italy??

If you lived in Portugal would you avoid paying UK NI if you are a UK citizen?

With that in mind,

What is the average take home NET pay for a F/O and also for a captain.

A ball park figure would be fine.

many thanks and happy landings

jeanjambre

Hi Kinetic,

Nex Taxation in Portugal for not resident is 20%, not for uk contract.
But remember after Portugal taxes you have to check your country taxation. For example in Italy there's a bilateral agreement between Italy and Portugal , so for Italy if you pay 100% in Portugal you don't have to pay extras. But for example if you are Norwegian or swedish you have to pay the differences with your country taxation.
For the 8% ox taxation related to UK national security no chance you have to pay it. ( i'm not sure for portuguese residents)
FO Net salary with old taxation (25%) was 3,127 euro. Plus 70 euro x diem. So make your calculation. ( 18 working days 70x18=1260 , but to subtract what you spend during tour fo lunch or dinner when you don't have crew food)
For the Captain from gross subtract the taxes ....

Ciao Happy lnds

buzzc152

Not quite Kinetic.

UK residents pay regular UK tax, they pay nothing to Portugal. Everyone else (i.e those who don't live in the UK) pay 20% income tax to Portugal and NI to the UK (about 5% I think).

Now there might be regional variations on this imposed by particular EU states, but you'd have to verify that with your own tax people.

Assuming your own country isn't going to tax you, your net income will be EUR56500 minus 25% (approx) for an FO or EUR95000 minus 25% for skipper. Plus of course you will receive approx EUR12000 tax free in per diems. There are also company bonuses, extra cash for line trainers etc.

Ciao

Edit : Jean beat me to it, but you get the idea.

8028410q

I've just submitted my application, and trying to get my head around all this tax business.

Let me see if I've got this right then...!

Scenario. Year 1 F/O, gets 56500 euros, this is about Ł42067. Using a tax calculator http://www.i-resign.com/uk/financial...calculator.asp
It tells me I would get about Ł2534/month. Now 12000 euros is Ł8934, the tax free element, divide that by 12 months and you get Ł744 per month. Adding this to the taxable element and you should get Ł3278 per month take home.

Now the question, would any UK based F/O's please let me know if this is about right for your take home pay? PM me if you wish.

Thanks again

8028410q

the_bookkeeper

for a new F/o the salary is now 4708 Euro/month (around 57600 euro/year, it is now increased by 2,1% due to OECD inflation) minus 20% tax, minus 6% NI in London, so it is almost 3500 net plus 1000-1200 Euro per diems a month. So it should be around 4600 euro net/ month.

Kinetic

JeanJambre and buzzc152 thank you for your time.

So being a bit of an idiot in these matters, If one (UK citizen) was to move to Italy (wonderfull country), would they automatically become a resident, and would they then qualify to pay just the 20-25% + UK NI, or do you think they, as a UK citizen, resident in Italy would still have to pay the full UK tax.

I would happily move to Italy. To stay in the UK on UK taxes makes the transition back to the right seat difficult financially, to pay just 20-25% flat + NI to live in Italy would be much more desirable.

Many thanks for your time.

Kinetic

all replies gratefully received, Italian residency/ tax specialists most welcome!!

FliegerTiger

So has the flat rate Portugese tax changed? Last I heard it was 25% not 20%

FT

hollingworthp

"the Portuguese Government has approved a reduction in the income tax rate for non-residents from 25 to 20 percent, starting in 2008"

NB - this does not apply to uk residents who continue to use the UK rates

FliegerTiger

Sounds good to me!

Pattz

Hi,

Any swedish guys working for NJ that can tell us how the tax-situation up north works. Been reading the taxagreement between Sweden and Portugal and cant really determine what the deal is.

Anybody out there, please!!


Pattz

jeanjambre

Ciao I'm sorry but I'm unable to give you any answer. Because I don't know uk rules.

What I can give you is an example based on italian rules. If tomorrow I move my residence to Nice or Monaco (for example) I will still have problems with my Tax office , as untill I'm italian citizen for them I have to pay in Italy my taxes.The only solution could be to change my citizenship, but this is another story and much more difficult.!!!
So i suggest you to contact your uk tax office and ask them if they have any special agreement for uk citizen working outside uk. ( but I don't think you can find a good answer.)
Ciao Happy LNDS

resa32

Hi Pat,

You will have to pay some swedish tax aswell, but not on the whole amount. Anyway, you will end up with about 5500-6000E in your pocket as a first year Captain (incl. perdiem)

Pattz

Thanks for the reply Resa,

Could you however tell me alittle more exact how it works in Sweden, after the 20% in Portugal and the NI in the UK, what happens with the remaining salary in Sweden? Also if you know, the net start figure per month for a first year F/O living in Sweden?

Many Thanks!!!

resa32

Formula looks something like this:

(Basic pay + Perdiem) - (NI + Perdiem according to swedish list) = Amount they will use to calculate your tax - tax in Portugal (20% of basic pay)... Then you can take off normal stuff like loans, travel to gateway etc... Perdiem according to swedish list is depending on what country you fly to, but it will be a bit more than 70E/day. Hope it helps!

Pattz

Ok Resa.

Sounds complicated, but any figure for F/O:s in Sweden?

Thanks!

jhortamaul

Seems there are too many scenarios to get a clear picture.....is there an ideal situation within Europe to declare as residence in order to pay the min. tax? In other words, what circumstances will allow for max income while paying the min. taxes? Andorra? Switzerland? Germany?

CaptainProp

I have been working and living in several EU countries over the past years and a few things surprise me..

The Italian case mentioned above makes no sense at all. Not saying that it is incorrect, just not in line with EU tax policies.. Your citizenship has normally NOTHING to do with your tax liability in the EU.
What matters is 1. Where is the main business of you company registered. 2. Where is your main place of abode. 3. Any tax regulations signed specifically between country 1 and 2 that overrules EU tax agreements.

You are tax liable in country 1 (above) and may, or may not, be taxed by that country. You are also tax liable in country 2 (above) but country 2 cannot tax you on income that you have already paid tax for in country 1, this is where dual tax agreements step in to protect you from double taxation. What you may end up having to do is pay in some tax to country 2 if the tax in this country is HIGHER then what you have in country 1.

Makes sense?

This was the case for me years ago when I lived in Sweden and worked for a company based in another EU country. Just watch out for the Social security fees normally paid for by the employer in Sweden.....you as an employee is responsible for making sure someone (read you!!) is paying these to the Swedish government.. This was the case with the rules signed between Sweden and the country I used to work in. In this case its better to stop working...

Good luck!
/CP

CL300

It is very easy, 3 possibilities;

You live in portugal ...... you have a portuguese contract and pay your taxes in portugal.

You live in UK, you have a UK contract, and you are taxed in UK according to your tax code.

You live anywhere else, you have a UK contract, you are taxed at source 20% plus National Insurance of around 5000 Euros a year.


Now, you have to check on the double taxation agreement between portugal and your home country, then you will have the answer.

no comment...

Pattz

Everybody, thanks for replying!
IŽll go back to the drawingboard and see if it suits me.

hallesag

hi pattz

for a new F/o the salary is now 4708 Euro/month (around 57600 euro/year, it is now increased by 2,1% due to OECD inflation)+ 70E/day per diem when out of your gateway (tax free)

of this info you can use RESAs calculation.

Brgds