What’s the best way to leave a country?

[Casper]

I’ve tried to tell the tax department, in Portugal, that I’m leaving. But then they want a new address. I’m currently a resident, but not a citizen. I’m going to travel for quite some time so I don’t have a new address to give them. I tried to just give them an address for a place I might stay for some time, but they didn’t accept that.

Is there a clever way to do it, or should I just ignore it? If I’m not staying in the country and don’t have any ties to the country, I assume that’ll do?

Would it be a problem if I used an address from something like the digital residency in Palau?

 

[Sols]

I’ve tried to tell the tax department, in Portugal, that I’m leaving. But then they want a new address. I’m currently a resident, but not a citizen. I’m going to travel for quite some time so I don’t have a new address to give them. I tried to just give them an address for a place I might stay for some time, but they didn’t accept that.

Is there a clever way to do it, or should I just ignore it? If I’m not staying in the country and don’t have any ties to the country, I assume that’ll do?

Establish a new place of genuine tax residence, give them that address, and then go travel the world. If you don't do it properly, Portugal may not accept that you are non-resident and treat you as a resident until proven otherwise.

If you're an EU citizen, one of the easiest options you have is the 60-day tax residence program in Cyprus. Move there, rent a place to live for at least a year, spend 60 days in Cyprus, and then start travelling the world. As long as you don't become tax resident anywhere else, you qualify as tax resident in Cyprus by just spending 60 days per year there. You can get a tax residence certificate to show the Portuguese tax authority, in addition to your proof of registration/residence permit.

Would it be a problem if I used an address from something like the digital residency in Palau?

It's generally not smart to lie to tax authorities. If you make an honest mistake, most tax authorities are reasonable. But if you deceive them and they find out, they won't be quite as kumbaya.

 

[TheCryptoAnt]

maybe you could tell them you are going back home?

 

[scooterguy]

With the little information you are providing, a wild guess is that they will still consider you a tax resident during 2023, unless you can give them an actual tax residency in a country with a DTA with Portugal.

This can happen if you had or still have any sort of economic activity in there, or if you still have a place of abode.

 

[Mike Forman]

Can confirm what they indicate above and as in many topics already covered. You better always have somewhere a residency (where they preferably leave you alone and no tax on worldwide income).

Too many people believe they can travel around the world and be long enough (>186 days) outside their country of citizenship escape taxation on personal income. Before it would suffice to just give any adress without further proof (which could still be challenged by tax authorities).

Now some countries require proof of residence just as the consulate/embassy in the country of residence requires you if you plan to register yourself in that country, such as visa >6 months and address proof.

Then you can handle all your consular services in that country (apply new passport,etc..) and send any communication, summons, etc.. to your new address

 

[Mssquirrel]

maybe you could tell them you are going back home?

I think this should be fine and unregister yourself from everything in the country

 

[aragon]

If you have no ties to Portugal, nothing. No rented apartment, no garage, no storage, no car, no family, nothing whatsoever in that country, I think you can tell them this:

What are they going to do? For a tax authority to claim tax residence of a person they must have something of substance tying that person to the country. You're not even born there.

But yes, deregister yourself, close accounts, memberships, etc.

 

[Mssquirrel]

If you have no ties to Portugal, nothing. No rented apartment, no garage, no storage, no car, no family, nothing whatsoever in that country, I think you can tell them this:

What are they going to do? For a tax authority to claim tax residence of a person they must have something of substance tying that person to the country. You're not even born there.

But yes, deregister yourself, close accounts, memberships, etc.

Agreed deregister yourself from the address you have registered in the country even if is an apartment you are renting I did that in another country not Portugal but maybe same aplies there check it out.

 

[Konstanz]

If you have no ties to Portugal, nothing. No rented apartment, no garage, no storage, no car, no family, nothing whatsoever in that country, I think you can tell them this:

What are they going to do? For a tax authority to claim tax residence of a person they must have something of substance tying that person to the country. You're not even born there.

But yes, deregister yourself, close accounts, memberships, etc.

Some countries has rules. If you leave to tax havens like UAE, you still liable tax for couple of years.
Don't know about Portugal.
I think Cyprus is good option , because it's EU country

 

[Alonzo]

Some countries has rules. If you leave to tax havens like UAE, you still liable tax for couple of years.
Don't know about Portugal.
I think Cyprus is good option , because it's EU country

Indeed but, is there a list of countries that do so on the internet? I unfortunately couldn't find one.

 

[Mssquirrel]

Indeed but, is there a list of countries that do so on the internet? I unfortunately couldn't find one.

It depends on your country and which countries they consider tax havens

 

[koohl]

I’ve tried to tell the tax department, in Portugal, that I’m leaving. But then they want a new address. I’m currently a resident, but not a citizen. I’m going to travel for quite some time so I don’t have a new address to give them. I tried to just give them an address for a place I might stay for some time, but they didn’t accept that.

Is there a clever way to do it, or should I just ignore it? If I’m not staying in the country and don’t have any ties to the country, I assume that’ll do?

Would it be a problem if I used an address from something like the digital residency in Palau?

You leave the country and setup a postal address before you tell the auth. that you have left! That worked well for me. When I asked them while I still was in the country they told me you are not allowed to do so!