Tax

[LICY]

I know the issue of getting a tourist license has been quoted many times over about 6 years or so. we are in the process of finding out more. I dare say requirements 6 years ago could be different to requirements now. One issue for us is tax. Not adverse to paying tax on income but we have heard nothing really gets taken into account. If that is so it is pointless bringing tourism to the area for us. We pay a mortgage, electric, water, council (type) tax, gardening, pool, maid and monthly management fees, not to say wear and tear. We all know how that lot adds up. for us the whole reason is to try and pay things like that, not make a profit. Any guidance appreciated and who should prepare tax accounts and when.

[e-richard]

Not adverse to paying tax on income but we have heard nothing really gets taken into account.

Thats not quite true. Yes, there are very strict rules on what can be allowed, and they are stricter than we may be used to in the UK, but there are a lot of allowances in the list of costs you mention. I am not an accountant, so will not offer any specific advice, but as you are getting prepared for the future, I will say this one:

Make sure that you get a fully detailed invoice (factura) for everything you spend money on.
Make sure it is printed in triplicate, that it has YOUR name on it, your Fiscal number, your postal address.
That IVA clearly shown with the sellers IVA number, their fiscal number, their address, their inside leg measurement, and its dated.
I think it also has to be in Portuguese.

Once you have jumped through all those hoops, just collect them all together and hand the bundle to a qualified accountant who will prepare your tax returns, validate all the invoices, choosing those which are allowable this year, cos it may change each year, and then he will send you a huge invoice (factura) which is NOT allowable.

easy, peasy, expensive.

[LICY]

Thanks e-Richard. Think I probably said this before strange we are both in Surrey and CVO.

[Prada]

Thanks e-Richard. Think I probably said this before strange we are both in Surrey and CVO.

We are in Surrey and CVO too!

[LICY]

Thanks e-Richard. Think I probably said this before strange we are both in Surrey and CVO.

We are in Surrey and CVO too!

Well that makes at least 3 of us. E-R lives quite a way from us near J8. See you are new. Do you have a property/know CVO well?

[widge]

Thanks e-Richard. Think I probably said this before strange we are both in Surrey and CVO.

We are in Surrey and CVO too!

Ah but Licy can be in both places at the same time

[Prada]

Hi Licy, we came to Carvoeiro for the first time last May fell in love with the place so much so we completed on a villa in Vale de Milho by August and now try to get out there as much as we possibly can. From reading previous posts I think you are in Kingswood? We are just down the road in Chipstead!

[EMM]

So " Surbiton " on sea is not that an innacurate description of Carvoeiro

[LICY]

Hi Licy, we came to Carvoeiro for the first time last May fell in love with the place so much so we completed on a villa in Vale de Milho by August and now try to get out there as much as we possibly can. From reading previous posts I think you are in Kingswood? We are just down the road in Chipstead!

Yes, off woodland way.. How strange, yes we come out as much as possible. Maybe we can meet. We have a number of great friends, widge being one.

[LICY]

So " Surbiton " on sea is not that an innacurate description of Carvoeiro

My dear, CVO is nicer than Surbiton as it's a lot prettier and way less traffic ( most of the year). We live in an equivalent to CVO without the valleys and beach, albeit box hill is very close. It would be the same for our newbie Prada. A little bIt of countryside without being in the middle of nowhere.

[Bruce Wallis]

Hi Licy, we came to Carvoeiro for the first time last May fell in love with the place so much so we completed on a villa in Vale de Milho by August and now try to get out there as much as we possibly can. From reading previous posts I think you are in Kingswood? We are just down the road in Chipstead!

I almost regret moving out of Banstead Woods now
Aren't I your friend now LICY??

[LICY]

Hi Licy, we came to Carvoeiro for the first time last May fell in love with the place so much so we completed on a villa in Vale de Milho by August and now try to get out there as much as we possibly can. From reading previous posts I think you are in Kingswood? We are just down the road in Chipstead!

I almost regret moving out of Banstead Woods now
Aren't I your friend now LICY??

Yes my dear! and Mrs W. When do you start walking? It was only because Mr Widge commented.

[EMM]

Licy , I have this mental image of you being the Margo and Gerry of Solferais

[LICY]

Licy , I have this mental image of you being the Margo and Gerry of Solferais

Oh, a posh bird! No I aint. However Kingswood (and Chipstead) are very nice areas with lots of detached properties. Indeed somewhat posher than M and G. However certainly like the nice things in life, ie having a beautiful villa in CVO. On the otherside of the coin very happy to use Easyjet and not eat out often just to save the pennies.

[pedro_architect]

You can deduct IVA (VAT) from almost everything related to your business .....the government will return you 100% of the deducted IVA every 3 months; not sure about exactly what is included on the deduction list because theyv changed the rules but I think it depends on the business: i.e; any kind of hardware (computers, tonners, cellphones...) diesel, cellphone call invoices, office supplies and furniture (not sure), company diesel vehicles, among others.

You need an accountant and he/she helps you save money or gives you the right advice.

Furthermore, you have the IRS deductions (health and pharmacy, etc etc etc)