Having purchased your property in Portugal, you may now have the choice to decide whether to apply for Residency (Residencia).
Being a resident in Portugal can have a number of advantages, not only in respect of local taxes positions but also if or when you may decide to permanently sell or up grade your property.
In the UK there is no capital gains tax on your ‘primary residence’ however in Portugal there is a ‘roll over’ allowance which has a qualification period of 2 years. After this period if a new property has not been purchased, then CGT will become payable at the prevailing rate. The residential rate at present is only 50% of a non-resident's liability, therefore non-residency may have a greater financial liability.
So you may pay all you local taxes, complete your annual tax returns and pay tax on any income, however this does not naturally qualify you as a ‘resident’. Other criteria and registrations will need to be applied for and should be checked to confirm they are suitable for your position.
Ofs-portugal can assist you in not only your purchase but also your future tax planning in respect of your property.