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-   -   Non habitual status Portugal (https://www.pprune.org/terms-endearment/600808-non-habitual-status-portugal.html)

Dadinafix 17th Oct 2017 16:23

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

C212-100 18th Oct 2017 09:20

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.

hunterboy 18th Oct 2017 09:23

Yes, you are eligible. Many have achieved the NHR status

C212-100 18th Oct 2017 12:16

hunterboy,

Are you sure of that? It is not the information I have.

Shanwick Shanwick 18th Oct 2017 18:02

Better be quick though as there's a possibility that the scheme will terminate very soon.

RAT 5 18th Oct 2017 18:19

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........

dirk85 18th Oct 2017 19:05

That 10 year deal is only for retired people buying properties in Portugal, not normal workers.

wiggy 19th Oct 2017 05:40


he is living in Portugal is therefore UK tax free.
Perhaps, but just in case the likes of HMRC Section 690 ITEPA 2003 might be relevant to the bit I've emphasised....

Dadinafix 19th Oct 2017 08:46

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!

Daz80 19th Oct 2017 16:35

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.

Avenger 20th Oct 2017 10:41

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

RAT 5 20th Oct 2017 11:42

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.

Sucram 22nd Oct 2017 21:56

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

hunterboy 23rd Oct 2017 07:44

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.

JliderPilot 2nd Jul 2018 10:03

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

Porto Pete 2nd Jul 2018 11:36

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.

Flying Torquewrench 2nd Jul 2018 18:07

From personal experience but not flying related, heed the advice from Porto Pete and pay a professional.

Klimax 2nd Jul 2018 21:46

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.

McMax 21st Apr 2019 09:55

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?

skyhigh1234 23rd Apr 2019 16:28

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.

Almag 17th Jul 2019 12:02

I understand that there are currently no Pilots that enjoy the (temporarily) reduced income tax rate of 20%. Considering all the professions listed below, seems a bit unfair....
Entertaining people is considered a high value activity, but taking people on their long awaited, well earned holidays is not. Maybe 707 could be an option for application. ;)

Any idea what the approximate net salary is for a DEC 1st year, with 2 school going children and wife not working the 1st year? And does the following still apply (I can't find any reference)? In 2017, an extraordinary surcharge was brought in for resident taxpayers with earnings over €20,261, the rate of which varies from 0.88% to 3.21% depending on income levels. An additional solidarity rate for high earners with incomes over €80,000 was also announced.


5 - What are considered high value added activities of a scientific, artistic or technical nature?
Ministerial Order no. 12/2010, of January 7, defined the “high value added activities of a scientific, artistic or technical nature” qualifying for the regime. It encompasses a wide range of professions and activities, as follows:
1 - Architects, engineers and similar technicians:
101 – Architects
102 – Engineers
103 – Geologists
2 - Visual artists, actors and musicians:
201 – Theater, ballet, film, radio and television Artists
202 – Singers
203 – Sculptors
204 – Musicians
205 – Painters
3 – Auditors:
301 – Auditors
302 –Tax Consultants
4 - Doctors and dentists:
401 – Dentists
402 – Analyst Doctors
403 – Surgeons
404 – Board doctors in ships
405 – General Practitioners
406 – Dentists
407 – Dentist Doctors
408 – Physiatrists
409 – Gastroenterologists
410 – Ophthalmologists
411 – Orthopaedists
412 – Otorhinolaryngologists
413 – Paediatricians
404 – Radiologists
405 – Doctors in other specialties
5 - Teachers:
501 – University professors
6 - Psychologists:
601 – Psychologists
7 - Professional services, technicians and similar:
701 – Archaeologists
702 – Biologists and experts in life sciences
703 – Computer Programmers
704 – Software consultancy and activities related to information technology and information technology
705 – Computer programming activities
706 – Computer consultancy activities

707 – Management and operation of computer equipment...
an A320 is basically a flying computer as it is fly-by-wire, what a A320 pilot does to fly and manage the airplane's flight path is to manage computers through side stick inputs, FCU and MCDU, surely that should/could be considered as managing and operating computer equipment [wishful, hopeful thinking, worth a try!]
708 – Activities of information services
709 – Activities of data processing, hosting information and related activities/Web portals
710 – Activities of data processing, hosting information and related activities
711 – Other information service activities
712 – Activities of news agencies
713 – Other information service activities
714 – Scientific research and development
715 – Research and development of science physical and natural
716 – Research and development in biotechnology
717 – Designers
8 - Investors, administrators and managers:
801 – Investors, administrators and managers of companies promoting productive investment, if allocated to eligible projects under tax benefits contracts awarded under the Tax Code for Investment, approved by Decree-Law No. 249/2009, of 23 September
802 – Senior employees of companies

hunterboy 17th Jul 2019 18:36

Just to clarify, I believe that NHR status is available to pilots NHR in Portugal, but working outside of Portugal. As the above poster states, pilots are not on the list for reduced (20%) rate tax for income earned in Portugal.
Mind you, free advice , as always, is worth what you pay for it.

C212-100 17th Jul 2019 21:24

hunterboy

NHR Status for pilots will be available for non-Portuguese (ou Portuguese living abroad for the past 5 years) from January 2020 onwards.

The change to the list of professions is prepared and will become effective on that date. Unless a big surprise happens on the national elections that will happen next October.

cheers.

Almag 18th Jul 2019 13:53

That's very kind of you to share this information, where can we find this proposed list of professions eligible for NHR from 2020?

Further, I understand that on top of the regular income tax for employees, Portugal tax rates 2019 on approximately 150K and 75K*2 (for married couples, single income)
€ 0 – € 7,091 14.5% = 1,028.195
€ 7,092 – €20,261 28.5% = 3,753.165
€20,262 – €40,522 37% = 7,496.200
€40,523 – €80,640 45% = 18,052.650 / 15,514.650
€80,641+ 48% = 33,292.320
Tax = 63,622.530 (single) / 55,584.420 (married)
There are additional social security contributions at a rate of 11% on gross remuneration, another 16,500.00 on 150K I believe.
And an additional solidarity tax of 2.5% on income between 80,000 and 250,000..... an additional 1,750 for the single employee to pay....

I can see now, why not many pilots are interested to work in Portugal as regular employees.
Please correct me if my estimate figures are wrong.

McMax 17th Oct 2019 16:52

Any update on the new list of professions eligible for the NHR status yet?

flyhigh788 23rd Dec 2020 12:51

Any news on that?

Can someone confirm that pilots are now benefiting from the special tax rate of 20%?

lear999wa 23rd Dec 2020 15:42

Yes I can confirm that pilots are now on the approved occupation list for 20% tax + 11% Ni.
BGRS

hunterboy 24th Dec 2020 07:41

I assume that is NHR pilots working in Portugal rather than working outside of Portugal?

Klimax 12th Jul 2021 11:54

Still waiting for a reference to where it says that pilots with foreign sourced income are eligible for NHR in Portugal.


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