Tax benefits for expatriates in Portugal

Portugal has been a popular destination for expatriates for many years. The country's tax advantages are one of the main reasons for its appeal, as much as its pleasant climate and quality of life. If you're thinking of moving to Portugal too, this article outlines the main tax advantages available to you.

The Non-Habitual Residence Regime (RNH)

The Non-Habitual Residence regime (RNH) is one of the main tax attractions for expatriates in Portugal. Introduced in 2009, this regime offers significant tax advantages to new residents. These include exemption from foreign income tax for a period of 10 years, and a flat tax rate of 20%. 

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To qualify, you must not have been a Portuguese tax resident for at least 5 years. You must also apply for Non-Habitual Residence status with the Portuguese tax authorities. Click for more details of how to apply for this status. 

Incentives for investors and entrepreneurs

Portugal also encourages foreign investment through various programs and tax incentives. The Golden Visa Program, for example, offers a residence permit to non-European investors in exchange for investment in real estate, job creation or other economic activities. As a Golden Visa holder, you also benefit from tax exemption on your foreign earnings. If you invest in research and development, you can also benefit from a significant tax credit.

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Tax incentives for retirees

It's not just investors and young entrepreneurs who are attracted to Portugal. Retirees are also encouraged to end their lives in this country with its pleasant climate. To attract them, the government has introduced numerous tax incentives. These include a tax exemption on foreign pensions for 10 years if the retiree benefits from the RNH scheme. In addition, the cost of living is generally lower than in other European countries. Even with a modest pension, you can be sure of a comfortable life in Portugal.