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While I'm on this subject. The UK has very stringent border and immigration controls. A case in point.

A British citizen married an Argentinian Doctor and they had one child in Argentina. She was a housewife with no personal income of her own. They decided to relocate to the UK. Her Doctor husband had a Spouse Visa that expires after 3 months as do all visas.

When he applied for residency, it was refused and he was sent back to Argentina to reapply for a visa. You cannot apply for a visa inside the UK.

The reason for the refusal is that the British spouse must sponsor the third country spouse. To do this she had to have an income of around R27k pm or savings of R1.8M but as she was a housewife she had none. It does not matter that her husband is a high earning Doctor.

British citizens bringing in a foreign spouse now have to use the EU Treaty laws. To do this, they have to live and work in an Shengen  member state for at least 3 months and get residency in that state. Then enter the UK using Treaty Rights as it overrides UK's internal laws.

This can be done via Ireland as many do due to the language. South Africans can enter Ireland without a visa and can apply for residency if the spouse is an EU member citizen.

   

 

Strange tax laws here in Portugal.

Spouses fill in one tax return with both incomes combined together. This sucks if both work.

Shares held for 12 months are considered Capital and if sold, you would not pay CGT if you acquire shares in a different company with the proceeds.
The same applies to property, primary or not. 

cant we agree to call those normal tax laws, and the ones in SA strange?

I never thought I would one day ask Jesus for help with my tax but I just did. Hopefully Jesus will be successful in his application on my behalf for immunity from tax in Portugal.
I may have mentioned this before but I am very forgetful of late so will banter on about this system.

Portugal has a shortage of cash and not unlike South Africa, the politicians needed extra money to pocket so they came up with a system to attract foreign money for their Nkandlas. I think they called Costas Enormicos here but not too sure.

The wording of this system or regime is somewhat confusing. Non Habitual Residency. This is what Jesus will get for me even though I have permanent residency in Portugal. Confusing right?

Customs and Border control has recorded me as a permanent resident so I'm good to live here but the tax office will see me as a Non Resident for 10 years. So effectually, I will not pay tax here for 10 years because I am not "residing here".

Whoopee. A tax haven. Now to wait for Tony Jesus, my accountant here in Portugal to be successful in my application.     

No P. That was discussed here but they specifically did not include that as it would defeat the aim of attracting foreigners into Portugal with money to spend here. Most of the foreigners have bought property here anyway.

Very interesting reading Orca - have a ton of questions - I am in a very similar situation. Bit younger at 41 but also retired with a similar stash

And now I have a ton of questions, you should have your own thread!

This too is my path I wish to follow. 35. House is paid off, 3 rentals (2 are townhouses(bonded) and 1 is cottage on paid off property), in the process of acquiring a 2nd easy to run small business. I'm all for easy to manage passive income streams with minimal effort. I'm starting to realize it's rare where you see the returns else where like in profitable small businesses started or bought at the right price, although let me say finding them is a task on it's own. Stock market and property included.

I think a separate early retirement thread is a great idea Patrick, especially for those that have done it. Would love to hear Mr_Dividends story too and ask questions as they come to mind.

http://www.telegraph.co.uk/finance/personalfinance/special-reports/11519095/The-ultimate-pension-freedom-Retire-in-Portugal-and-reduce-your-tax.html

Here is some good reading about tax havens in Europe. If you think your pension may not last then this will benefit you.

I explained my position with divies vs capital growth on the other retirement thread.

As to keeping my money in SA. I have inquired on UK and EU investment forums about shares or ETF's here that consistently produce 25% pa and I seem to have made a laughing stock of myself. "In your dreams" one stated in reply.

So in short. Developed markets under perform emerging markets and investors are looking at Africa for growth.

The ZAR does not decline against the Euro as much as other currencies.  Over the past 10 years it declined by about 4% pa. In a way, the ZAR is pegged to the Euro.
I can live with -4% pa in a market that has superior growth.