Rental income from a Portuguese property should be accounted for and tax paid locally. Those adding property rental income to their UK tax return and those failing to account for rental income at all need advice, and soon.
The international sharing of bank information comes into effect from January 2017 but data from January 2016 will be included. The UK government is to make it a criminal offence not to declare income and gains from outside the UK.
This means that HMRC will no longer need to prove deliberate intent for failure to make accurate tax declarations, also it can go back 20 years through bank records.
The current mood to ignore the Alojamento Local property lettings legislation in Portugal is as widespread as it is dangerous as, if caught evading tax in Portugal, assessments can be backdated and non-payment is not a sensible option with Portugal’s brutally effective ‘coercive collection’ system.
Take advice.
Source:- Algarve Daily News
