taxes in Madeira

edited December 1969 in General
For people who are already residents in Madeira, when you submit your taxes - are you taxed on all of your UK income, or state pension income only and are you taxes usually higher or lower than in the UK?

Do you end up having to declare the Portuguese tax here back to the UK, and you get a rebate - or do you declare UK tax to Portugal and it reduces you taxes here?

Comments

  • You must complete a tax return each year around May and declare everything which you receive income-wise, including all pensions and anything else. You should make sure that what income you receive in the UK is paid tax free otherwise you will pay tax twice. There is NO choice of where you pay tax. If you have residency in Madeira you MUST register for tax and even if you have zero income you still have to complete a return or face a fine. You are taxed on everything but there are personal allowances as in the UK. You can set medical costs and rent against your income,also You cannot pay tax in both countries and get refunds. We pay an accountant around €25 to submit our return for us - it is worth it as the system is very complex. After allowances the tax rate is around 25%.
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