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Where Taxpayers and Advisers Meet

FHL Double Taxation

WINDSURFER
Posts:15
Joined:Mon Oct 05, 2015 6:16 pm
FHL Double Taxation

Postby WINDSURFER » Wed May 04, 2022 1:02 pm

Hello all, I am a UK resident & have owned a FHL in Portugal since 2017. I have paid tax on the income in both Portugal & the UK since owning the property but have been reading about a double taxation treaty which exists between Portugal & the UK. Is paying tax in both countries necessary or not in my situation.
Thanks in advance for any replies.

Jholm
Posts:354
Joined:Mon Mar 11, 2019 4:22 pm

Re: FHL Double Taxation

Postby Jholm » Wed May 04, 2022 2:06 pm

Without checking the tax treaty, it is likely Portugal has taxation rights and you should be claiming foreign tax credit on your UK tax return to account for this. This will stand to reduce your UK tax bill, or possibility make it nil entirely.

Otherwise, yes, you are paying tax twice in two countries with no relief.


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