Living the Dream – Time Speeds Up

I feel time speeding up as I live my dream in Portugal. Part of that dream included more traveling now that I have easier access to European destinations, reading more books, taking more walks.

And then there are my general retirement goals of more time for genealogy research and posting my research to Cherokee Roots blog. Plus, staying in contact with all of the extended family relationships I have discovered with my genealogy research and following up on our shared leads.

There is at least one story in me pressing to become a book, the story of my grandmother’s life. So much other writing I intended to do during this time, including posting more often to this blog!

For today, I am going to post photos from some of the travel that has kept me busy the last two months.

One follow-up note to my previous post before the photos – I was granted non-habitual resident status and am now searching for a local accountant to assist in filing my Portugal tax form this month. Starting to feel anxious about that as I am having trouble finding someone. More about that next month after I have hopefully filed my tax form for Portugal!

Now for the photos –

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St. James Park – London

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Verona

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Walking Food Tour – Milan

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The Medina – Tangier

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Malaga – Spain

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Mercado – Funchal, Madeira

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The Ritz – London

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Tea in the Georgian Room – Harrods, London

Non-Habitual Resident Status and Taxes

In my last post I mentioned that I would be consulting with an accountant about filing taxes in Portugal. The news was all good. However, I did become aware of another step that I need to take in order to not pay income tax in Portugal.

I have until March 31 of the year following the year in which I obtained my Temporary Resident status to file as a non-habitual resident. It is a simple online process to apply, followed up by submitting proof electronically or by mail that I am currently paying taxes in the country of which I am a citizen. So what does that mean for my tax obligations here in Portugal?

Once my status is granted I will need to file a report online showing that I am still residing in Portugal and that I am still paying taxes in the country from which my income originates.

Certain types of income are allowed to be exempt and others are capped at a 20% tax rate. Here is the abbreviated version of how tax obligation is applied if have non-habitual resident status.

  • For a period of 10 years, taxation related to IRS (personal income tax) on labour income in Portugal is at a fixed rate of 20%
  • No double taxation for pension incomes or for employment and self-employment income obtained abroad for a period of 10 years

I will still need to file a tax return each year in Portugal, with no payment due, and I will also need to update my non-habitual resident status annually for 10 years. Then, a new set of rules regarding citizenship and taxes will apply. I am not going to worry about that yet!

For more information

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The Dream Continues