1) Medical Expenses:
a) Remember to write your health
insurance provider to get an annual
statement about the bills that were not
covered by the insurance. Since the
Insurance Company should have all of the
original invoices, the company's statement
of non-reimbursed expenses will serve as
substantiation for your 30% tax credit.
b) Perhaps you forgot to get an invoice
from your dentist or doctor? Now is the last
opportunity before he/she closes the annual
books.
Remember that for each €100 of invoices
you will save €30 off your IRS income tax.
Enjoy a dinner out with the Mrs. on the
Taxman! 2) Educational Expenses If you took
a course in Portuguese, computer science or
another interest that you might have, be
sure to say "Factura, se faz favor!" and
have your invoice ready to declare.
3) Housing If you rented your abode, be
sure to complete a proper rental agreement
with your landlord.
You will enjoy the same tax break just
the same as if you were paying a mortgage.
4) Renewable Energy There is a generous
credit (up to €761 pa) for renewable energy
equipment. An investment that is spread out
between December and January can double your
allowance (up to €1,522).
5) Gifts to Charity Finanças will give
you uplift of up to 140% on your
contribution to a recognised Portuguese
charity, one quarter of which will be
granted as a tax credit. Now you can afford
to be generous! 6) Computers While personal
computer equipment ceased being a tax credit
2005, do not despair! It was reinstated in
2006 with the caveat that you are a
registered student. Double your benefit by
donating old hardware to your local school
and get a charity credit as explained in nº
5.
7) Sole Traders If you have been
practising a business activity but have not
as yet registered, join euroFINESCO's Sole
Trader "Start Up" Plan before the end of the
year to avoid unnecessary fines and
penalties.
If you have ceased your business
activity, be sure to de-register (cessação
de actividade), otherwise you will be
charged a minimum tax.
8) Property Sales If you sold a property
in 2008, be sure to assemble the following
documents so that you will be ready for tax
time:
a) deed of acquisition; b) deed of sale;
c) invoices from expenses such as lawyers,
notary, estate agent, etc.
d) bills from capital improvements to the
property over the last 5 years.
Remember that notaries report all
transactions to Finanças so your failure to
report will assure the wrath of the tax
inspectors.
As of November 2008, you may rollover
your capital gain when you move your
principal residence to anywhere in the EU or
EEE. To be eligible, proof of new residency
is required.
Remember to save your "facturas" and tidy
up your affairs before year's end. With
these simple steps, you should be able to
save hundreds of Euros in taxes next Spring.
Dennis Swing Greene is Senior Partner and
International Fiscal Consultant for
euroFINESCO s.a. Private consultations can
be scheduled at our offices in Guia
(Albufeira), Lisbon (Chiado) and, starting
January 2008, in Funchal (Sé), Madeira. In
the Algarve, call 289561333, in Lisbon,
213424210 or in Funchal at, 969102813. Our
e-mail is: info@eurofinesco.com, or on the
internet at
www.eurofinesco.com.
