NHR Portugal for Canadian

Hello All,

I read some of the topics here on the NHR.  I am an executive of a Canadian company with offices in Canada, USA and UK.  I am considering moving to Portugal to oversee the growth of the company in the EU.  My salary and yearly bonus are paid by the Canadian company and I am on the top tax rate in Canada.

I have a few questions if someone can please answer:

1.  What are the income tax implications for me becoming an NHR? Can I really save any tax?
2.  I also hold an investment portfolio with dividend stocks and some interest paid too. I understand that Canada will charge a withholding tax of 10-15% but since I manage the account myself (online broker) , can I still do that not being a Canadian tax resident? My current online broker (RBC direct investing) told me that once I am no longer a tax resident in Canada they will not allow me to login to their portal.
3. Can someone recommend a good legal/tax advisor?

Thanks,

Josh

Not knowing the details of Canadian Tax Regime, I can't say what you may save but my bet is that it may be quite a bit.
I was luckily allowed both residency and NHR early 2019 (a UK Citizen) where Portugal offered 0% tax incentives over 10 years.
I used to be an IFA in UK so had a bit of insight on tax incentives, planning etc, but knew nothing of Portugal system.
As such, my nominal tax rate reduced from standard 21%, and I was firmly in the 40% higher tax bracket in UK.
That reduced to 0%, but now, I believe, it would be 10% as NHR is less generous since 2020.
In addition, I still retain my UK personal annual allowances (around £12300 this tax year) to offset my private rental income in UK!
I completed the move on my own without tax advice although I do strongly advise that you purchase the "Living in Portugal" paperback from Blevin Franks who are also international tax advisers.
Worth its weight in Gold. Up to date, accurate, under 10 Euro.
https://www.blevinsfranks.com/
That book should explain everything you need.
For my annual tax return in Portugal I use Atlantic in Villamoura.  That costs me about 300,Euro per year and very efficient.
I have no experience of their tax advice but I find their tax return service very good indeed.
Good luck.
Alan

Hi Alan,

Thanks for the reply.  I looked at the link you provided and I found them online before as well.  I know very little on tax matters myself so I am going to use someone to help me understand in plain language what is involved.  I also think that my situation is slightly different since I am still working (I'm 50)

Josh

I used Edge International as tax and immigration lawyers and was satisfied.  Probably cheaper than Blevins which I found outrageously expensive when I tried to use them for a specific issue.

Thanks Patrick!

Yes. Blevins accept that they are not the cheapest option.
They do have the expertise and their book is exceptional - much more than a marketing gimmick and lead generator with little of value.
It also gives seriously good advise on house purchase, driving licence laws, acquiring health care etc.  Much of which I would personally have overlooked, and one which could have had serious legal consequences if I hadn't taken action.
All I suggest is that if you educate yourself with the detail within then you can probably save yourself a fortune on any subsequent tax advice.
When I eventually met a Blevins Adviser for a "free cinsultatiion" when considering advice, U was told that It is unlikely I needed it as I was "95% there".
If your company is paying, then sure, contract with Blevins, however.

Hi Josh, curious if you got answers to your questions or found a good tax advisor. I’m researching the same things hoping to make the move from Montreal this year. Any resources would be much appreciated. Thanks!

Can you be more specific.  When I googled Edge International I got a slew of different companies.

https://www.edge-il.com/ Maybe this one?

I am still in the process of sorting this out.  If I have any good info I will report back.

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slugsurmamates wrote:

Not knowing the details of Canadian Tax Regime, I can't say what you may save but my bet is that it may be quite a bit.
I was luckily allowed both residency and NHR early 2019 (a UK Citizen) where Portugal offered 0% tax incentives over 10 years.
I used to be an IFA in UK so had a bit of insight on tax incentives, planning etc, but knew nothing of Portugal system.
As such, my nominal tax rate reduced from standard 21%, and I was firmly in the 40% higher tax bracket in UK.
That reduced to 0%, but now, I believe, it would be 10% as NHR is less generous since 2020.
In addition, I still retain my UK personal annual allowances (around £12300 this tax year) to offset my private rental income in UK!
I completed the move on my own without tax advice although I do strongly advise that you purchase the "Living in Portugal" paperback from Blevin Franks who are also international tax advisers.
Worth its weight in Gold. Up to date, accurate, under 10 Euro.
https://www.blevinsfranks.com/
That book should explain everything you need.
For my annual tax return in Portugal I use Atlantic in Villamoura.  That costs me about 300,Euro per year and very efficient.
I have no experience of their tax advice but I find their tax return service very good indeed.
Good luck.
Alan

The 10% applies to pensions. Salaries and self employment income 20% tax rate on approved occupations -  there is a published list.

Rental income, dividend income, interest income - mostly tax free in Portugal if income from abroad. Portuguese source income does not qualify for these benefits. If this income is from 'black listed' countries (Portuguese black list - other lists are not relevant), it will be taxed at 35% rate - if there is no double tax treaty with the country / territory concerned - some countries are on the black list and there are double tax treaties with Portugal.

Capital gains from fixed property abroad - also tax free - but have to double check with double tax treaty if source country has the right to tax (if the source country has the right to tax, then tax free whilst in the nhr regime - the same rule as for interest, dividends). This is not the case with regards to capital gains on financial instruments (shares, bonds, etc) - though at least one exception to this rule - Canada has the right to tax citizens for a certain period after leaving Canada, therefore, in principle, should qualify for the rule 'tax free if the other country has the right to tax income - best to refer to the specific rule in the Canada Portugal double tax treaty.

If the source country does not tax the income as listed above (interest, dividends, capital gains on fixed property), it will still qualify for 0% rate - as the wording is 'may' in the legislation ie if the source country has the right to tax in terms of a double tax treaty, then it will be tax free in Portugal under the nhr rules, even if the source country does not effectively tax such income - does not require actual tax bill to be raised.

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