Just an update on money matters here in PT.
I think I mentioned that my application for "Non Habitual Residency" was accepted by the IRS here. This was confirmed by my tax returns that I got last Friday. It shows a nil return and will continue as nil for 10 years. Unless of course if I "trade" my SA stocks before the 1 year holding requirement for CGT as that will attract a flat 20% tax rate here.
I must add that I am a member of a local expat forum here and I urged people to apply for that 10 year tax exemption and got laughed at by some members saying that it is only for the rich and property owners. They are now kicking their butts as they missed their deadline and now cannot apply.
My wife is still diligently keeping book of our spending each month and I was pleasantly surprised at our living costs.
We are not on a budget at all and buy what we want and when we want without hesitation. For the past 2 months we have averaged just over R10k pm and we still have enough essential items like beer, wine and food to carry us a week into next month.
This includes R1k for private medical insurance.
R5k for rent.
R600 for water, gas and electricity.
R400 for unlimited internet. (TV)
We still do not have a car as public transport here is excellent enough for us at this stage.
I can only attribute this drop from R12k to R10k to the fact that we can now read labels and not buy wrong stuff over and over. We know where to buy certain things cheaper and have completed our touristy stuff.
So living on R10k pm tax free in Portugal is quite doable. My next post will be on the legal constraints of emigration to the UK for South African couples where one partner is a holder of a Brit passport. This is relatively simple for the EU but differs for the UK.