Hi Martin,
We have been given information from the local Finanças that the dreaded "183 days" for Boat Tax, is treated in exactly the same way as for Income Tax - ie they do NOT have to be consecutive days.
Can you give me a reference or document that I can use to try and convince our local man?
Many thanks,  Terry

Hello Terry,

Thanks for your email. Unfortunately I have nothing in the way of a printed document or one that I can refer you to to prove that what I have said in my article is correct. As I do not speak Portuguese I got most of my information verbally, except for a letter sent out to boat owners by Vilamoura Marina. I discussed this letter with Daniel who is in charge of the reception at Vilamoura Marina. He is very helpful and so perhaps you should talk to him.

I would be very grateful if you would let me know the outcome of this, whilst I am fairly confident that my article is correct, if it is wrong I must correct it immediately.

Thank you very much for getting in touch with me about this.

Best wishes, Martin.

Hi Martin,

You may remember the query I raised last year!  Well we've a last got confirmation, and in writing, that your information is correct.

Attached is a photo scan of the original document from Finanças in Lisbon, in case anyone else queries you.

For your files, (and you did say you didn't speak Portuguese) I'll forward my electronic "Paper Trail" which shows the question I asked and the translation of the answer.

Best wishes, Terry.

The following in red is Terry's letter to Karina Vieira of AFPOP in which he asked her to translate and send his letter to Finanças in Lisbon (shown in brown). Martin.

Hello Karina,

Thanks for your trouble.  Below is the sort of letter I think I should send – it would be a great help to have it translated - and checked for style and language, too, please!

Dear Sir,

Reference: Circulation Tax – As it applies to Pleasure Yachts

I understand that this tax is payable if a pleasure yacht is kept in Portugal for more than 183 days in any tax year, from January to December. 

However, I am not sure if this applies only to a continuous period over 183 days, or if an accumulation of shorter periods, amounting in total to more than 183 days, would result in liability.

I would be grateful if you could clarify this for me.

Yours sincerely,

T.M. O’Brien

Thanks again, Karina,

Terry

The following is Karina Vieira's translation of the reply from Finanças in Lisbon. Martin.

Dear Mr. O´Brien,
 
I hope that you entered well into 2010 and that it will be a wonderful year for you and your family.
I have a reply from Finanças, I have sent a copy to you by post as well.
The reply says that if the boat is in Portugal between January 1st to December 31st, for 183 days consecutive , you are obliged to pay the IUC, you have 30 days to do so (counting from the end of 183 days).
 
I hope this helps. Have a nice day.
 
Kind Regards
Karina Vieira
Programme Supervisor

For more information on Circulation tax click here Martin.