Tax benefits for foreigners in Portugal

If you are thinking about living in Portugal, you need to know which are the best places and what are the advantages of this action.

What are the advantages of living in Portugal?

There are many advantages of living in Portugal, including:

• Climate: Portugal has a warm and sunny climate, with over 300 days of sunshine a year. The country is known for its mild winters and hot summers, making it an ideal destination for anyone who enjoys outdoor activities.

• Lifestyle: Portugal has a relaxed and relaxed lifestyle, centered on family, friends and good food. The country is known for its excellent cuisine, wine and coffee culture, as well as its many festivals and celebrations throughout the year.

• Cost of living: Portugal is one of the most economical countries in Western Europe, with a relatively low cost of living compared to other European countries. Housing, food and transport costs are generally lower than in other European countries.

• Health care: Portugal has a high quality public health system that is accessible to all residents. The country also has a growing private healthcare sector, which provides additional options for those who wish to access specialist medical services.

What are the tax benefits for foreigners in Portugal?

Portugal offers several tax benefits to foreigners who become residents in the country, including:

• Non-Habitual Resident Regime (RNH file extension): This is a special tax regime for new residents who have not been tax residents in Portugal in the last five years. Under this regime, income from foreign sources may be exempt from taxation in Portugal or subject to a reduced rate. This can include pensions, dividends, rental income and capital gains from the sale of assets.

• Golden visa: This is a program that allows non-EU citizens to reside in Portugal by investing in the country. The investment can be made in the form of real estate, business or capital transfer. Golden Visa holders are eligible for the same tax benefits as other non-habitual residents.

• Double taxation treaties: Portugal has signed double taxation treaties with many countries around the world. These treaties are intended to avoid double taxation on income earned in one country by a resident of another country. The treaty may also offer reduced rates of withholding tax on dividends, interest and royalties.

• Tax incentives for high value-added activities: Portugal offers tax incentives to companies involved in activities with high added value, such as research and development, renewable energy and restoration of cultural heritage. These incentives can include reduced corporate tax rates and exemptions from property tax and stamp duty.

It is important to note that tax rules and regulations can be complex and subject to change. If you are considering moving to Portugal for tax purposes, it is recommended that you seek advice from a tax professional who is familiar with Portuguese tax laws and regulations.