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Buachaill, Barrister
Category: Law
Satisfied Customers: 10947
Experience:  Barrister 17 years experience
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We live in England and own without mortgage our own house

Customer Question

Hi We live in England and own without mortgage our own house .We do not have any income save monthly pensions plus rent from our other house in which we have tenants. We are looking to buy in Portugal .How does this affect our tax situatuion ?Do we have to pay tax on the Portugese property . Many thanks John

Submitted: 2 years ago.
Category: Law
Expert:  Buachaill replied 2 years ago.
1. Your tax position in England is not affected if you purchase a property in Portugal. Essentially, liability to tax in the Uk is dependent upon residence in the UK. So long as you don't take up residency in POrtugal, you will not have a liability to pay additional tax in Portugal. If you move to Portugal permanently and live less than 183 days per annum in the UK, then YOU WILL no longer be liable to tax in the Uk.
2. But just because you buy a house in Portugal, this does not mean you attract a tax charge in the UK. If you subsequently, in a few years, sell the house in Portugal for a profit, you will attract Capital Gains tax charge in the UK on the profit so long as you are still resident in the UK.
Customer: replied 2 years ago.

Thanks for the advice - your service was obviously excellent but we had to wait 8 hours for the reply therefore I can only score the service satisfactory .

Expert:  Buachaill replied 2 years ago.

2. That is fine. So long as you give the answer at least three stars, I am happy. However, please DO RATE the answer as this is necessary for you Expert to receive part of the monies you have deposited with the website.