PORTUGAL| Golden Opportunities
Caiado Guerreiro | www.caiadoguerreiro.com
NON HABITUAL RESIDENT IN PORTUGAL
It is a very competitive regime, allowing tax payers that fulfill the below mentioned requirements, to benefit from a flat tax rate of only 20% over income obtained in Portugal, arising from high value added activities, and of 0% over foreign sourced income.
So, if you are a Non-Habitual Resident in Portugal, there is NO TAXATION on:
- CAPITAL GAINS
For becoming a non-habitual resident, private individuals need to:
- Exercise, in the Portuguese territory, a high added value activity – for example, aliberal profession, covering, namely, architects, engineers, artists, actors, auditors, doctors, dentists, college professors, psychologists, as well as activities in theComputer Science field, data processing services, information services, research and scientific activities. This list of high-added value activities includes, namely, business executives, investors, directors and managers of companies, among other activities
- Have not been taxed as a tax resident in Portugal within the five preceding years.
- Fulfill legal criteria to be considered tax resident in the Portuguese territory:
- Spending, at least, 183 days in Portuguese territory, either consecutive or not; or
- Having in Portuguese territory, by 31st December, a home with all the lodging conditions likely to suppose that the individual has the intent to use it as his/her habitual residency.
RETIRED FOREIGNERS REGIME – EXEMPTION FROM PERSONAL INCOME TAX
From January 2013 on, retired foreigners who spend at least 183 days in Portugal or that have in Portuguese territory, by 31st December, a home with all the lodging conditions likely to suppose that the individual has the intent to use it as his/her habitual residency will be exempt from Personal Income Tax for a ten-year period, renewable.
This exemption may be cumulated with the other one applicable to the Portuguese “nonhabitual residents”, already in force, which allows an exemption over income derived abroad. Said non-habitual residency regime does have another significant advantage: it imposes a very competitive tax rate of only 20% over income derived from the provision of services and wages earned in Portugal. Dividends, interests, capital gains and any other income derived abroad will be exempt of personal income tax.
So, there is NO TAXATION on:
- CAPITAL GAINS
Furthermore, tax wise, Portugal offers extraordinarily comparative advantages, namely:
- No gift tax
- No inheritance tax (between Parents, Sons, Grandsons and Husband and Wife)