Staying on top of the latest currency news can help you time your transfers more effectively, so find out what you should be looking out for over the next couple of weeks…

It’s that time of year again, when we need to complete and submit our French income tax returns.  The introduction of the new pay-as-you-earn (PAYE) system changes the payment of tax this year, but you need to declare all your income as usual.

As always, take care to include all your worldwide income as required by French tax legislation. This is more important than ever with automatic exchange of information now taking place under the Common Reporting Standard.

Income is reported in different categories: A) Salaries, B) Sole Traders, E) Capital, F) Property, G) Capital Gains and H) Pensions and is taxable in Portugal regardless of its origin. For non-residents, only income actually arising in Portugal is subject to assessment.

Foreign Residents receiving pensions from their home jurisdictions first need to study the nature of their pension to see how it is to be reported and assessed. Three types of pensions are taxable under the rules of this category.

The Common Reporting Standard, where countries around the world automatically exchange information about taxpayers’ offshore income and assets, is now in full flow. Tax authorities are beginning to use the data received to their benefit. 

The UK government published the 2019 version of its “No Safe Havens” policy paper on 13^th March, timed to coincide with the Chancellor’s Spring Statement. It outlines how the UK has seen “huge changes and improvements to offshore tax compliance in recent years” and lists some of the results of the Common Reporting Standard (CRS).

Staying on top of the latest currency news can help you time your transfers more effectively, so find out what you should be looking out for over the next couple of weeks…

Income is reported in different categories: A) Salaries, B) Sole Traders, E) Capital, F) Property, G) Capital Gains and H) Pensions and is taxable in Portugal regardless of its origin. For non-residents, only income actually arising in Portugal is subject to assessment.

The current Capital Gains Tax Regime defines a flat-rate assessment on the disposal of shares, bonds, derivatives, warrants, and other similar securities. In general, these gains are subject to a flat-rate tax of 28%. One significant exemption is the assessment of gains from the sale of shares of micro and small companies not listed on the stock exchange. Although the 28% formally applies, these companies benefit from a 50% exclusion. Most small businesses (“Limitada”) as well as Portuguese Nominee Companies (“Sociedade Civil”´) are eligible for this reduced assessment.

Income is reported in different categories: A) Salaries, B) Sole Traders, E) Capital, F) Property, G) Capital Gains and H) Pensions and is taxable in Portugal regardless of its origin. For non-residents, only income actually arising in Portugal is subject to assessment.

If you let out furnished accommodations to holidaymakers on a short-term basis, you are engaged in tourist services (Category B) and should have already acquired a Local Lodging licence. This type of business activity receives special treatment under the “Simplified Regime”. You are taxable on only 35% of your invoiced income.

For many expatriates, owning a place in the sun is part of the dream retirement in Portugal. Whether it is a holiday home or somewhere permanent, it is important to look beyond the price tag and understand all the tax implications.