Dr. Filipe Espinha is explaining, that according to Portuguese labour legislation, every worker is entitled to an annual guaranteed income equivalent to 14 monthly salaries. This consists of 12 monthly salaries and 2 subsidies.
If you plan to leave Portugal for 6 months or more during the validity of your residence permit, you are required to notify the Immigration Service.
If you believe that returning to Portugal for a short period resets the duration of your absence, you are mistaken.
According to the law, the total time you spend outside Portugal is accumulated, throughout the entire validity period of your residence permit.
When selling a property, the owner pays capital gains tax.
But there is very good news.
Portugal taxes only half the amount of capital gains.
This rule applies to the income of both residents and non-residents.
The bad news is that only the margin rate of the personal income tax scale is used to calculate the tax.
Can I move out of the rented apartment before the date specified in the contract? Dr. Claudia Faria explains how to do this legally without losing the security deposit.
By law, you are required to stay in the rented apartment for at least 1/3 of the term.
Additionally, you have the obligation to notify the owner in writing if you wish to move out.
The notice period depends on the duration of the lease.
Many are concerned about the fate of NHR regime in Portugal, and we have news.
The Parliament deputies have approved a norm that introduces changes to the NHR tax regime. From 2024, NHR will only be available to employees of companies certified as 'startups'.
However, those who have already obtained NHR can continue to enjoy their benefits until the end of the 10-year period, and they will not be affected by changes in the legislation. You can activate the NHR regime in 2024 in the following cases:
- you applied for a residency visa or residence permit before December 31, 2013;
- you received a work contract or a promise of employment (dated before December 31, 2023);
- you signed a lease or another contract for the right to use or own residential real estate (dated before October 10, 2023);
- your child is enrolled in an educational institution (before October 10, 2023).
In our lessons, we thoroughly examine how to properly use the NHR regime. Remember, sometimes it's better not to apply the NHR regime.
Photo © O Jornal Economico
In the lesson, you will learn how to prepare in advance for the replacement of your driver's license with a Portuguese one.
Let's go through the steps of how to replace your national driver's license with a Portuguese one.
You need to do some preparatory work before moving to Portugal.
It's very beneficial if you study this course while still in your home country.
First, you need to obtain a certificate of the authenticity of your driver's license.
Usually, this document is issued by the government agency responsible for traffic organization in your country, the same entity that issued your license.
in Portugal
From 2024, the limits of personal income taxed at a lower rate will increase by an average of 3%. Additionally, the tax rates themselves have been reduced: 13.25% (was 14.5%), 18% (was 21%), 23% (was 26.5%), 26% (was 28.5%), 32.75% (was 35%). The last four rates of the scale have not been reduced. These changes are beneficial, for example, for those who will have an income of 27,000 EUR in 2024. In 2023, the tax on this income would be 6,690.88 EUR. In 2024, the tax on a similar income will be 5,894.53 EUR. The actual amount of tax is reduced by 13%.
We will tell you how to do this, as well as what problems may arise.
The first step is for the person who wants you to become their tax representativeto visit a notary and make a power of attorney for you. The power of attorney should specify the action –obtaining a fiscal number in Portugal (Obtenção de NIF em Portugal).
Create a single PDF file containing the following documents: (1) Power of attorney, (2) passport of the person for whom you want to obtain a NIF, (3) proof of address in the country of residence (a utility bill or bank statement is best), and (4) certificate of fiscal number in the country of residence. If the documentsare not in English, add a translation made by a certified translator.
On the Finanças portal, you need to go to the “Minha área” section, located in the top menu. Then go to “Fale conosco –Contacte-nos” and select “Atendimento e-balcão”. Click on the “Registrar nova questão” button and fill out the form, sequentially selecting the following options from the drop-down lists: Registro Contribuinte, Identificação, Atrib/Alter NIF Singulares. In the Assunto field, specify “Obtenção de NIF em Portugal”. In the Mensagem field, write a text stating that you wish to obtain a fiscal number for the person whose data you provide. Attach the file with the documents in PDF format. Click the “Registrar Questão” button. You will receive the NIF by mail.
However, remember that by becoming a tax guarantor, you are responsible for timely informing the person about all letters that arrive in their name from the tax service. You will be responsible for any consequences if you do not forward an important letter in time. If you decide to move to another apartment, you need to change your fiscal address and have access to the previous mailbox for some time, as some letters may arrive late at the old address.
As part of the course on Migration and Tax Laws in Portugal, you will receive clear instructions on how to change the address in the NIF.
(1) Apostille stamp on your educational diplomas. Without this stamp, you will not be able to work in your profession in Portugal. This stamp can only be obtained in your home country. You will not be able to get this stamp in Portugal.
(2) A certificate of authenticity for your driver's license. Without this certificate, you will not be able to exchange your national driver's license for a Portuguese one.
(3) An international driver's license, with which you can drive abroad during the first few months.
(4) The last Tax return singed and stamped (this document with make bank account smother).
(5) Fiscal number certificate (it is also important for a bank account opening).
(6) Recently reissued Birth Certificates for all family members, Marriage Certificate. All documents need to be stamped with an Apostille.
of Portugal
If you are applying for a Digital Nomad visa, you should distinguish between two different items in the document package: the minimum monthly income (€3,100) and the means of subsistence (14 minimum wages). Many mistakenly think that as proof of means of subsistence, they need to attach a bank statement with a positive balance equal to 14 Digital Nomad wages (i.e., more than €43,000). This is a misconception. It is sufficient to have €11,500 in the account. In our lessons on www.expatclass.com, we often analyze such misconceptions and find correct solutions to expats' problems in Portugal.
Let’s imagine you are already a Portuguese resident and travelling to another European Union country.
How will your health be protected during this period?
For this purpose, there is the European Health Insurance Card (EHIC).
This card grants you the same rights to medical assistance as residents of the EU country you are currently in.
Many of you ask what is better to do - include family members in the application of the main applicant or submit an individual application and deal with the legalization of family members later.
Of course, processing an application with family members is slower and more complicated than processing an individual application. For this reason, some prefer to obtain an individual visa for one family member, while other family members come as tourists and legalize their status already in Portugal. If you have time, it's better to go the first route. If you need a visa urgently, then the second route is preferable.
This situation is often the subject of disputes. Many people (including some consulate employees) misunderstand the wording 'having means of subsistence sufficient for 12 months.' Many think that this refers to 12 monthly salaries, but that's not the case. It's about proving that a resident can support themselves for 12 months (Article 5, paragraph 6 of Portaria 1563/2007). The Portuguese Labor Code states that each worker is entitled to a minimum income consisting of the 12 minimum monthly salaries and two subsidies (holiday and Christmas) equal to one salary each. In total, the minimum income for 12 months is equal to 14 minimum wages. You might be lucky, and your documents will be approved with an income equal to 12 months. But there is a chance that at some stage, the employee's qualification will be so high that they will know all these nuances. Usually, highly qualified employees consider appeals.
of Portugal
The document package for the D7 visa usually includes 2 rental agreements.
1. If you include a rental agreement for housing in Portugal in your visa document package, then this agreement must be registered on the Finanças portal; it's better to attach receipts for the payment of the deposit or first month (the apartment owner also issues this receipt on the Finanças portal).
2. If you include in your visa document package a lease agreement for your own apartment (as justification for having passive income), then you need to attach to this agreement a bank statement confirming thepayment history for this contract.The latest Tax Return also works.
Rental agreement does not require notarization, but translation into Portuguese might be helpful.
for non-residents
You may hear the opinion that it is impossible to open a bank account in Portugal if you do not have a permanent address in Portugal, but this is a misconception. Of course, it's easier for residents to open an account, but non-residents can also open a bank account in Portugal.
To open an account, a bank minimally requires 2 documents: proof of legal stay in Portugal and justification for the need to open an account. Usually, problems arise with the second requirement. You need to prove that you need an account specifically in Portugal. As evidence, opening a company, a work contract, a contract for purchasing or renting housing (be sure to attach receipts for at least one month’s payment) will suffice. The bank may also request a statement from your account in a bank in your home country and your last tax return. This and other complex situations are analyzed in our lessons dedicated to the laws and taxes of Portugal, on www.ExpatClass.com
in Portugal
Before purchasing, you can fix preliminary agreements on the terms of the future deal in a Promissory Agreement. Keep in mind that based on this document, you have the right to secure a temporary property right to the object. It is important to remember that the final property right is transferred to you not at the moment of payment and signing of the final act. The transfer of property rights must be registered by a special government body that keeps records of real estate objects. It is important to see the process through to the end. The apartment can remain listed throughout the purchasing process – don’t worry about this. If you register your Promissory Agreement in Conservatoria, you are fully protected. In our lessons on ExpatClass.com, you can prepare for most problematic situations and solve all problems on your own.
If you are among the last fortunate individuals who are eligible for the NHR (Non-Habitual Resident) tax regime in Portugal, this information is for you. It's widely known that the NHR regime offers a 0% tax rate on foreign-sourced income. However, not everyone is aware that domestic income within Portugal is taxed at a flat rate of 20%, regardless of the amount earned. But it's important to note that this benefit is only available to those in certain highly valued professions. On the ExpatClass.com courses, Dr. Filipe Espinha provides detailed explanations about this.
How to prove that you possess a profession from the list?
The first and simplest way is to prove that you have a university degree in one of the valuable professions listed.
The second way is to prove that you have been engaged in your profession for 5 years. Evidence could include your website, service contracts, invoices, bank statements, work photos.
Notify Finanças of your rental expenses related to moving to the interior of Portugal. This will entitle you to an increased deduction for housing rent for up to 1000 euros for 3 years.
Notify Finanças of education expenses in the interior territories or autonomous regions (Madeira, Azores). This will allow you to claim higher deductions for education, up to 1000 euros.
Confirm your family composition to be able to file joint tax returns. In the ExpatClass tax course, we explain in detail why it's advantageous for spouses to file joint tax returns.