Yachting and Boating World forums: Uk registered vehicles.

This is an extract from lagosnavigators.net I believe the car taxation is the same as boats but with cars after 6 months you are required to leave or change your registration to portuguese. As you can see from the article the tax situation is in a state of flux and the law is not always applied or interpreted the same in every area.

Annual Boat Tax, 2008
(Major Changes Are Noted In Red)

THESE NOTES ARE FOR INFORMATION AND GUIDANCE ONLY.
EACH INDIVIDUAL MUST CLARIFY HIS OWN LEGAL RESPONSIBILITIES.
ONLY “FINANÇAS” CAN GIVE A DEFINITIVE STATEMENT OF THE LAW.

A Brief Background

For many years, there has been a national tax on ALL vehicles – with aircraft, yachts and motorboats included in this category! The application to foreign-owned boats had lapsed in most areas – until some 4 years ago when the local GNR Brigada Fiscal (“Tax Police”) appeared and issued statutory notices of non-compliance and penalty “tickets”.

The law in Portugal is the same as in the UK – it is up to the individual to know what the law is and what it requires of him. However, recognizing the difficulty most of us have in understanding the language and the taxation system, the Marina Manager raised the issue with the financial authorities. A set of local working practices were agreed, that would enable foreign boat owners to know their legal liabilities and how to go about meeting them.

The Navigators’ helped by publishing guidance notes on our web site, so that the information would be available for reference by later arrivals and by those who had not given an e-mail address to the Marina. These notes set out the legal position and allowed each owner to decide what he might have to pay if his boat’s presence became known.

New Legislation for 2008

While the basic principle of taxing “vehicles” remains the same, changes were introduced in the calculation, application, timing and payment procedures. These were set out in a new law that came into effect from 1st Jan 2008.

Administration Procedures

This law is still locally administered - but many areas of interpretation have yet to be decided and passed down from Lisbon to the local offices. In the absence of such guidance, local officers are left to devise their own procedures.

Again, our Marina Manager has met the authorities on our behalf, seeking to establish what the local ground rules are and to avoid the risk of penalties for missing any deadline.

It is stressed that only the Finance Ministry in Lisbon can make the final decision on the law. However, the interpretations made by the local Chief Financial Officer, and clarified in discussion with the Marina Manager, will be applied at the moment.

NOTE: These may change in the light of instructions from the Lisbon or Faro offices.

Tax Rate

From 2008, “Boat Tax” is now based on engine power only. It uses Kilowatts as the measure of power, and the rate of tax for 2008 is €2.05 per Kw. (1 HP = 0.7457 Kw.)

As a ready reckoner, the tax in 2008, equals approximately € (1.5 times horsepower).

Tax Exemption

Boats registered before 1986 and/or with an engine of less than 20 Kw. (= 26.82 HP) are exempt. There is no requirement to register or to claim this exemption.

Payment Procedures For Portuguese-Registered Boats

The tax is now payable by 31st Jan each year, with provision being made for declaration of ownership, calculation of tax due and subsequent payment to be made via the Internet and/or “Multibanco” systems. This procedure is the same as that used for tax on cars.

Tax Liability For Foreign-Registered Boats

The tax will be applied to all foreign-registered yachts kept here, either ashore or afloat, for a total of more than 183 days from the introduction of the new law on 1st January 2008. This means that the tax for any such foreign-registered boats will become payable on 2nd July 2008. There is always a short “period of grace” - still to be defined - but there are penalties for “late payment”. These are not applied if you pay as soon as you become liable for the tax - e.g. if you arrive in March, you will not be penalized if you pay the tax in September. Payment dates for future years are still unknown.

Payment Procedures For Foreign-Registered Boats

If and when you need to pay the tax, it must be paid in cash or by a cheque drawn on a Portuguese bank. If the owner is out of the country on the due date, someone else may make the payment on his behalf – so long as the owner has a "Numero Contribuente".

A "Numero Contribuente" is simply a Fiscal Identification Number - and note that it has nothing to do with Income Tax! It is obtained from the local Finanças Office, at a small cost, (ca. €6). Take your Passport and Marina Contract to give proof of “residence”.

To calculate any tax liability, the “Treasury” section of Finanças must then see the Boat Registration and proof of engine power, if needed, eg a Bill of Sale or Maker's Booklet.

This is the position as at 21st January 2008, based on a number of discussions between the Marina Manager and the Lagos Chief Financial Officer.

If you have any queries about this note, contact us via our web site.

Queries on your personal tax situation should be addressed to the Finanças Office