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NHTR Info Live in Portugal as a Non Habitual tax resident

Non-habitual tax resident Portugal 

Portuguese tax legislation establishes a favourable tax regime

Portugal not only now the safest place around, the best weather and food ! but now the best tax for your golden years

• a special tax rate of 20% applicable to employment and self

derived from a “high value-added activities”, as per a list published by the Portuguese tax residency authorities;

• employment income from a foreign source will be exempt from taxation, if such

income is taxed in the State of source;

• tax exemption (with progression) for foreign                       Non-habitual tax resident Portugal 

income, capital gains, interest, dividends, as well as other

investment income), provided certain conditions are met;

Portuguese Taxes

• no specific inheritance or gift tax; Full tax exemption for gifts on inheritance to

spouse, descendent or ascendants; Inheritance or gift to other individuals will be

either not taxable or subject to a low flat 10% stamp tax rate;

no wealth tax and free remittance of funds either in Portugal or abroad;

• capital gains from the disposal of shares are taxed at a flat rate of 25%, but exempted

up to €500 per year.

You can be a tax resident in Portugal if:

more than 183 days are spent in Portugal during the calendar year; or

• regardless of spending less than 183 days in Portugal during a calendar year, a person

maintains a residence suggesting being a habitual residence in Portugal as of 31December; or

• a person is also deemed to be tax resident in Portugal if one of the spouses is

considered as tax resident in Portugal.

Register with the portuguese tax authorities,

very simple for EU and Non

However, Non-EU citizens need immigration permission.

The legislation provides for exemption (with progression) on foreign pension income,

How to become a tax resident in Portugal Lisbon Cascais

• the income is taxed in the other country in accordance with the Double Tax Treaty

(DTT) between Portugal and that country; or

• the income may not be regarded as Portuguese tax legislation.

As the most DTT’s grant exclusive taxation rights on pension income to the country of

residence, in practice, foreign pension income may be excluded from taxation both in

Portugal and in the country of source.

Pensions tax residents in Portugal

Portuguese tax legislation establishes a favourable tax regime for non-habitual tax residents

• a special tax rate of 20% applicable to employment and self-employment income

added activities”, as per a list published by the Portuguese

• employment income from a foreign source will be exempt from taxation, if such

income is taxed in the State of source;

• tax exemption (with progression) for foreign-source income (pension, rental

income, capital gains, interest, dividends, as well as other

), provided certain conditions are met;

• no specific inheritance or gift tax; Full tax exemption for gifts on inheritance to

spouse, descendent or ascendants; Inheritance or gift to other individuals will be

either not taxable or subject to a low flat 10% stamp tax rate;

no wealth tax and free remittance of funds either in Portugal or abroad;

• capital gains from the disposal of shares are taxed at a flat rate of 25%, but exempted

In general terms, a person is deemed to be tax resident in Portugal if one of the

more than 183 days are spent in Portugal during the calendar year; or

• regardless of spending less than 183 days in Portugal during a calendar year, a person

maintains a residence suggesting being a habitual residence in Portugal as of 31

• a person is also deemed to be tax resident in Portugal if one of the spouses is

considered as tax resident in Portugal.

Register with the local tax authorities, very simple for EU and Non-EU citizens.

EU citizens need immigration permission.

The legislation provides for exemption (with progression) on foreign pension income,

• the income is taxed in the other country in accordance with the Double Tax Treaty

(DTT) between Portugal and that country; or

the income may not be regarded as Portuguese-source in accordance with domestic

When buying a property through Property lisbon.com you can rest assured all Tax and Legal advice can be provided by the very best advisors in advance of buying a property.

Our advisors can cater for many languages including Chinese and we are very used to dealing with  Golden Visa and NHTR cases.

[email protected]


 

Golden visa Portugal & Non habitual tax residency news

Investment through Portugal’s Golden Visa has almost reached the €1 billion threshold. The country continues to attract overseas investors through the residency scheme, despite recently ruling against proposed tax exemptions for foreign buyers.

Since its launch in 2012, around 1,500 residency permits have been issued through the scheme, bringing in €950 million of investment. This has helped to boost confidence in the country, with areas such as Lisbon seeing increased interest from overseas.

The majority of buyers have come from China (80 per cent), followed by Russians, as High Net Worth Individuals are required to stump up a minimum of €500,000 in real estate investment to qualify for a visa.

With the success of the scheme, it came as no surprise that the welcoming country was considering extending its tax exemptions for foreigners. The current Non-Habitual Residents Tax Regime (NHR) is a 10-year scheme that gives foreigners living in Portugal (for whatever length of time) a flat tax rate of 20 per cent, exemption from foreign income tax and 100 per cent gift and inheritance tax exemption for relatives and spouses.

Henley & Partners announced in October that it might be extended to also take into account CGT and investment income tax. Now, though, the country has ruled not to implement any changes for another year.

“As a follow up on the seminar we had last month on the Non Habitual Residents Regime, the draft of the law that will amend the Personal Income Tax Code has not incorporated the Proposal of the Commission regarding capital gains and other types of income, therefore, in principle the regime will not be updated for 2015,”.

While the picture may not be immediately positive for investors or expats, though, the decision arrives just as new figures indicate an increasingly favourable outlook for the country.

The RICS/CI Housing Market Survey for October shows that sales continued to rise in October 2014 – the 15th month of growing demand in a row. At the same time, values have steadied, with values across Portugal remaining broadly unchanged in each of the past three months – bolstering confidence in the market’s future.

RICS Senior Economist Josh Miller comments: “The ongoing improvement in sales market activity appears to have gained added momentum recently, while prices have now remained more or less stable for the past few months. Although this comes as a positive development, a sustained period of economic growth and strong job creation will be essential if a genuine recovery in the housing market is to emerge.”

CI Spokesman, Ricardo Guimaraes, says: “Current market sentiment largely points to stabilisation, but there is some variation at the regional level, with confidence higher in Lisbon than in Porto and the Algarve. The banks are seen as a key factor in potentially extending the market recovery across the country.”

Capital Gains Tax may not be waived for foreigners for at least another year, but Portugal’s Golden Visa has given the country a passport to leave recession territory and head towards recovery.

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