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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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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 |
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. |
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. |
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. |
Any update on the new list of professions eligible for the NHR status yet?
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Any news on that?
Can someone confirm that pilots are now benefiting from the special tax rate of 20%? |
Yes I can confirm that pilots are now on the approved occupation list for 20% tax + 11% Ni.
BGRS |
I assume that is NHR pilots working in Portugal rather than working outside of Portugal?
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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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Any updates on this thread now July 2022?
I know there have been changes. im looking to live in Portugal but be working for a non Portugal company commuting. can I get NHR? |
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