With this summary we look forward to point out the main points of this regime, especially the qualification points and the tax regime itself. This is a particularly good regime not just because the possibility of low tax rates, but also because of the natural specifications of Portugal and its economy.
Non habitual residents regime, is a special tax regime that enables you to benefit from a low tax rate for personal income tax for a 10 (ten) year period.
Portuguese source of income: employment and self-employment income can be liable to a special 20%
(twenty percent) flat tax rate, (in addition to 3,5% surtax), if it derives from a high value added activity, as:
- IT technicians;
- Liberal professions;
- Senior executives;
- Investors and managers under certain conditions.
Foreign source of income:
- Employees: employment income can be exempt from taxation in Portugal if, i) it is taxed in the source State according to the double tax treaty and ii) if no treaty can be applied, the income is effectively taxed in its source State;
- Investors: income such as dividends and interest, will be exempt in Portugal if such income may be liable to taxation in the country of source according with a Double Tax Treaty, which is the rule provided by most Tax Treaties signed by Portugal.
- Pensioners: may benefit from major tax savings or be exempt from any taxation both in Portugal and in the source/origin country.
In Portugal pensioners may benefit from important tax specifications, as:
Wealth Taxes: Portugal does not have any wealth taxes. Only applies property taxes.
Inheritance tax: In Portugal spouses, descendants and ascendants, are exempt from the any inheritance taxes, it is only levied at a 10% rate stamp duty if you do not qualify as spouses, descendants and ascendants
Gift taxes: same rule applies to gift taxes like inheritance tax.
To qualify as a non-habitual resident – NHR, an individual must meet the following requirements:
- Be tax resident under Portuguese legislation; and
- Not have been taxed as a Portuguese resident in the 5 (five) years prior to taking up residence in Portugal.
An individual is tax resident in Portugal for any year in which:
- He stays in Portugal for more than 183 days (continuously or not) during a 12 month period, which begins or ends in that tax year; or
- He has a residential accommodation available in Portugal in any day of that 12 month period, used as the individual’s habitual home.
Any day (or part of day) spent in Portugal will count as one day if the individual stays overnight in Portugal. Residency is established as of the first day of permanence in the country.
Some facts about Portugal that makes it even a better place to live
A safe environment to live and do business
Portugal has very low criminality rates with safe cities that can be enjoyed by all.
Portugal benefits from one of the main startup hubs in Europe, with low costs for starting your own business
Portugal also benefits from it privilege location in the enter of Europe and close American continent as well as close to Africa.
Climate & Gastronomy
In Portugal, everyone enjoys an unparalleled quality of life due to a mild climate, a unique luminosity, different landscapes and a unique gastronomy with a Mediterranean twist.
The climate is mild throughout the year and sunshine is usually present.
Portugal enjoys an average 280 days of sun/per year and an average of 15º degrees, but in cities like Lisbon we can count with 16,8º degrees.
Golf and Beach
Lisbon is the European capital with the highest number of golf courses and golden beaches.
Near the coast we can be in a beach within 15 minutes.
Portugal has extensive and quality infrastructures to travel and do business.
Portugal has 7 international airports and daily flights to major cities around the world.
Portugal as an extensive highroad network as a solid transportation network.
In Portugal you can count with high speed internet (one of the best in Europe) and an extensive cellular coverage.