Portugal offers a very attractive tax regime for newly resident individuals, referred to as Non-Resident Residents. This regulation provides for a fixed income tax rate of 20% for qualified employment and self-employment and a tax exemption for almost all income from foreign source. In the case of pensions, tax exemptions are granted in full, even if not taxed in the country of origin. In addition, the Portuguese tax system is very competitive in relation to taxes on wealth, donations and inheritances. The combination of Visa Gold and the Resident Regulation makes Portugal a highly competitive place with a low tax burden and free movement within the EU.
Fiscal regime of the Non-Resident Program:
Foreign residents with income from foreign origin, whose country has a double taxation agreement with Portugal, can benefit from a period of exemption from income tax.
This incentive, introduced in 2009 by the Portuguese Government, gives the opportunity to those who wish to become resident in Portugal, to benefit from an exemption from foreign income tax during the period of 10 years, maintaining its wealth.
The only requirements are that the potential Non-Resident Resident should be:
- Tax resident under Portuguese national legislation.
- Has not been taxed as a Portuguese resident in the last 5 years to benefit from the special tax regime for a period of 10 years.