Portugal took measures in 2012 to simplify the tax regime for so-called Non-Resident Residents to attract non-resident citizens to our country.
The scheme is already in full operation and offers tax benefits relevant to those wishing to establish their residence in Portugal, including citizens of other European Union member countries.
The Non-Resident Scheme is applicable to taxable persons who have not been resident in Portugal for the past five years and who remain in Portugal for more than 183 days a year, followed or interpolated or have, on 31 December of that year, Which imply the intention to maintain and occupy it as a habitual residence.
Among the tax benefits are:
- The exemption from taxation in Portugal of foreign source income resulting from dependent work or pensions.
- Taxation at the rate of 20% of income from Portuguese source, arising from value-added activity *.
Tax benefits are granted to Non-Residents for a period of 10 years.
Having a tax residence in Portugal also offers additional tax advantages, since there is no inheritance tax in Portugal for direct family members.
* Architects and engineers, plastic artists, actors and musicians, auditors and tax consultants, doctors and dentists, university professors, investors, administrators and managers, senior management, as specified in Portaria 12/2010, of January 7.