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Posts published in “Financial Matters”

Tax Season is here! – IRS 2020 – Procedures 3

Non-Habitual Residents Regime for Non-Habitual Residents The tax regime for non-habitual residents is intended to attract to Portugal certain qualified individuals and investments which may give rise to tax saving opportunities for expatriates.  The Non-Habitual Residence special tax regime has the following exemptions and benefits: Professional Income from Portugal Income…

TAX Season is here! IRS 2020 – Procedures 2

Non-Residents Non-Residents are taxable on income and gains arising in Portugal. When the paying entities are resident or assets located within or services performed in Portugal, then the following examples of income would need to be declared:             Local rental income;             Holiday lets (Local Lodging);Capital gains on sale of…

Tax Season is here! IRS 2020 – Procedures 1

Residents Countries increasingly challenge former residents who attempt to move to another. Although the rules vary, most states define a “resident” as an individual who is in the state for other than a temporary or transitory purpose. Countries consider a person’s “residence” or home to be the place of his…

Opening and Closing a Business Activity

Whether for profit or pleasure, the truth is that there are many people who choose to be sole traders as a way to make a living. More than one out of five Portuguese workers are self-employed, a percentage that places Portugal within the highest level of entrepreneurs in the EU. For a person to operate as a sole trader, there are some preliminary requirements that must be met with Tax Authority and Social Security Administration before starting up a business operation.

Fortune of World’s Ten Richest People Grew by 449 Billion Euros

The consequences of the coronavirus pandemic have been disastrous for millions of people. All over the world, businesses are closing their doors, more people are suddenly unemployed and poverty is growing at an alarming rate. National economies face the spectre of the worst recession since the 1930s, or possibly ever.

Aggregate vs Autonomous Reporting Options

When assessing Company profits, taxation occurs in a two-stage process: first, the Company pays Corporate Income Tax on its profits, then Shareholders pay Individual Income Tax on these distributed profits (now called dividends). This assessment procedure is called “economic” double taxation. Almost all countries in the EU have adopted one…

Residency Rules and the Withdrawal Agreement – Frequently Asked Questions

The Withdrawal Agreement provides for citizens rights upon the UK’s withdrawal from the EU. The following are some FAQ’s based on policy set by SEF (Serviço de Estrangeiros e Fronteiras). Conditions for Residence covered by the Withdrawal Agreement 1.   I am a British citizen, living and working in Portugal. To…

State Budget 2021 – Masks and disinfectant gel enter as IRS medical expenses

Expenses for masks, visors and disinfectant gel are now to be considered deductible health care expenses. If you buy individual protection equipment in an establishment that sells other products (such as supermarkets), you must ask for a separate invoice in order to deduct these expenses on your IRS return. In…

Sole Traders can make stage payments of VAT in 2021

Self-employed workers in the Simplified Regime can use the exceptional programme that permits the payment of VAT in the first half of 2021 to be deferred in three- or six-monthly instalments. The decree that provides for this exceptional and temporary plan is one of the measures that aims to ensure…

Brexit – Visiting UK Nationals eligible for “tax free” reimbursement

Businesses in Portugal have prepared systems for non-resident UK nationals to participate in “tax free” purchases as of 01 January 2021. The plan allows for the recovery of VAT paid on eligible purchases when exiting Portugal. There is a minimum amount of €61.50 within an establishment to be entitled to…

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