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:

  • INTERESTS
  • CAPITAL GAINS
  • DIVIDENDS

For becoming a non-habitual resident, private individuals need to:

  1. 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
  2. Have not been taxed as a tax resident in Portugal within the five preceding years.
  3. 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:

  • INTERESTS
  • CAPITAL GAINS
  • DIVIDENDS

Furthermore, tax wise, Portugal offers extraordinarily comparative advantages, namely:

  • No gift tax
  • No inheritance tax (between Parents, Sons, Grandsons and Husband and Wife)