TAX FREE INCOME IN PORTUGAL
Approximate number of applications made for a less Taxing life in Portugal.
Portugal’s Non-Habitual Residency tax regime status enables those who become a tax resident in Portugal, the opportunity to receive non-Portuguese source qualifying income tax free in Portugal.
Qualifying income includes pensions, dividends, interest income and royalties.
For international corporations this regime also covers professional income from high value-added activities, which benefit from a special flat tax rate of 20%.
To benefit you must become a Portuguese tax resident, without being a tax resident in Portugal in the previous five years. This status is granted for a 10 year period.
We represent award winning tax specialist law firms in Portugal and provide a "concierge" service with a 100% success rate for your application and relocation.
The Non Habitual Residents tax regime (“NHR”) was introduced in 2009. The principal objectives of the regime was to incentivise individuals and their families to live and ultimately invest in Portugal.
A white listed jurisdiction where a Resident will be able to:-
Be exempt from personal income tax on qualifying income.
Dispose of their assets and benefit from tax exemptions;
Pass on wealth without inheritance or gift taxes, namely for a spouse parents or children.
Any individual who has his habitual residence in Portugal or who spends more than 183 days in Portugal in the tax year, which runs from 1st January to 31st December or has a dwelling in Portugal at 31 December of that year with the intention to hold it as their habitual residence, and has not been a tax resident, in the previous five years.
You apply when you have become a Portuguese tax resident or before 31st March of the following tax year. We have a fast track to the departments processing the NHR regime applications and will obtaining a decision on your application within 7 days. Prior to making the application we will conduct a due diligence on your income and where appropriate propose any restructuring in order to maximise the benefit under the regime.
The fees for processing the NHR regime application are fixed, starting from €1500 euro.
As this regime is valid for each applicant for a period of 10 years tax authorities used the term “non-habitual”.
Yes just provide evidence of your address in Portugal, which can be done through providing a copy of your rental contract.
You only need to provide details on the value of each category of your annual income.
Since 2010 it has been an important pillar of the Portuguese foreign investment program.
You may request an international certificate of residence form the Portuguese tax authorities. This is sent to the tax authorities of the source income and ends that relationship, unless a withholding tax applies.
The deadline for a NHR application is 31st March of the tax year after you became tax resident in Portugal. You may backdate your registration as a NHR in Portugal to the date you became tax resident in Portugal.
Gifts are taxed in Portugal by applying stamp duty at the rate of 10% (10.8% for real property). However, transfers upon death from parents to children and between spouses are exempt. Gratuitous gift transfers are exempt when made from parents to children and between spouses, except for the rate of 0.8% on the taxable value of any real property transferred.
Portugal does not have wealth taxes. Only local taxes on Portuguese real estate apply
Employment and self-employment income can be liable to a special 20% flat rate if derived from high value added activities of scientific, artistic or technical character performed in Portugal. Examples of high value added activities: Architects, doctors, university professors, IT technicians, engineers, researchers, designers, liberal professions, investors and some managers.
Should you require any further information, or should you wish to be notified about one of our forthcoming seminars or workshops, please use this
We are an international firm with extensive expertise in assisting international private clients with financial matters in Portugal. Our experienced team consists of English solicitors and Portuguese lawyers delivering independent legal and tax solutions for our international clients. We have a fully scalable field of expertise in dealing with tax and property matters in Portugal for international clients, including purchase and sales.
Please contact us to arrange a private meeting in any of the following countries.
For further information or to request a private meeting or attend a workshop, please use our contact form.
Avenida Mendes Silva 15
Hampshire, PO16 8AB
UK Tel: + 44 (0) 1962 65 84 54
UK Fax: + 44 (0) 8721 15 05 88
PT Tel: + 351 214 66 99 99
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