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Non habitual status Portugal
Hi guy/gals,
Can anyone please advise whether being a pilot is eligible for None habitual tax status in Portugal? Many thanks |
Hi,
Only if you can prove to not living in Portugal for more than 183 days per annum. If, for instance, you are working for easyJet on their Portuguese contract you will not be eligible. |
Yes, you are eligible. Many have achieved the NHR status
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hunterboy,
Are you sure of that? It is not the information I have. |
Better be quick though as there's a possibility that the scheme will terminate very soon.
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Are you asking for a reason not to pay Portuguese tax while working there? I hear that there is a special deal. A friend tells me something about a 10 year tax free status of ex-pats living in Portugal. Is this what you are talking about? He is a pilot, based in UK but living with family in Portugal. He tells me he can live Portuguese tax free, and as he is living in Portugal is therefore UK tax free. It sounds too good to be true, but........
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That 10 year deal is only for retired people buying properties in Portugal, not normal workers.
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he is living in Portugal is therefore UK tax free. |
Hi,
Thanks for the replies. I had researched the portugese TAX system prior to the post. It was then that I came across NHR and the rules covering this. My enquiry was targeting whether the profession of pilot was eligable, and whether there were any British pilots working as a pilot in Portugal with real time experience of the tax liability. The Portugese do have an agreement with the British HMRC. Cheers! |
Unfortunately pilots don't qualify for the "high value jobs" tax status. Which is especially annoying given that artists and musicians are on the list.
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There are those that think you can set up offshore trusts and companies etc, but basically if you have an abode there you are liable for Tax...and the penalties for trying to get out of it are rather punitive
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Which is especially annoying given that artists and musicians are on the list.
waddayemean? We paint pictures in the sky and whistle on our way to work. |
NHR status is available if you haven't been resident in Portugal for the past five years, overseas income is tax free, (not income earned in Portugal) if the originating has a dta with Portugal. I.E. you could draw your pension tax free from the UK
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If you are unsure, google the many Portuguese law firms offering to do the legwork for you and call them. They are very happy to talk you through the process and the scheme over the phone.
To be honest though, if you can speak a bit of Portuguese or Spanish, you can probably do the registration yourself. |
Going back to the main question, can a pilot employed by Easyjet in Portugal qualify for NHR status. “Portugal offers a special ‘Non Habitual Resident’ regime for individuals who establish residence in Portugal for the first time, or who have not been resident in any of the previous five tax years. Under this scheme you can qualify for beneficial tax treatment for a period of 10 years. Under the regime, there is a special tax rate of 20% applicable to employment and self-employment income derived from certain ‘high added value’ activities. There is also a potential tax exemption for most foreign-source income, including UK pension income, provided certain conditions are met”. So lets say hypothetically a British pilot moves to Portugal to work for Easyjet, they rent/buy a property there. They spend more than 183 days in Portugal, so resident for tax purposes. Does a pilot qualify for the NHR scheme? Would be interesting if anyone working with Easyjet Portugal could comment |
There's an accountant in Lisbon who knows all these matters inside out who can advise you about the NHR. Van Doorn. Ask for Sonia. I believe in certain circumstances the NHR can apply but as a definite rule tax advice on PPRuNe is absolutely worthless in my experience. Speak and pay for an expert. |
From personal experience but not flying related, heed the advice from Porto Pete and pay a professional. |
I think most of us who have paid for advice from professional Portuguese lawyers will know that you still find it all to be a bit unclear. Perhaps we've taken advice from the wrong offices, but there is just no such thing as a clear cut answer to this. I think the OP is doing right be seeking "hands on" advice from actual experiences from other pilots. Lawyers are useless at the end of the day - they only really serve to feed themselves.
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So, any updates on the topic? Anyone been successful as an employed pilot to qualify or maybe via setting up a company abroad to be self employed? |
I am british, based in Portugal on a Portugese contract. I am a full resident paying Portugese tax and social security and I am also a Non Habitual Resident. Pilot is not on the list so we do not qualify for the 20% tax rate on income however I keep it as there are some other benefits and if they suddenly decide to add pilot to the list I hopefully will become eligible for the rate. You must complete the NHR application before filling your first tax return in Portugal as a resident I believe. I would not pay anyone to do this as all the info is there.
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