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Tax Benefits

Feel at home with us.

I wish to benefit from a favourable tax regime in Portugal.

Portugal introduced a special tax regime for new residents, with attractive tax benefits for retired foreign citizens.This new tax regime for non permanent residents aims to promote the transfer of resident status to Portugal of entrepreneurs, investors and specific professions.

  • WHAT IS THIS?

    In September 2009, the Portuguese government approved a new legal / tax regime for non-habitual tax residents, which offers the following core advantages.

    NHR individuals can benefit from the special personal income tax (“PIT”) regime for a ten year period.

    Foreign-source occupational pensions may be fully exempt from “PIT” if: Its recipient qualifies for the special NHR tax regime;
    The pensions are:

    Subject to tax in the source country (in accordance with the applicable Tax Treaty) or Deemed not to be derived in Portugal sourcing rules, i.e, not paid by a Portuguese permanent establishment of a non-resident.

    If these requirements are met, the pension will not be taxed in Portugal. In addition , the Tax Treaty between the source country and Portugal may preclude that country from taxing the pension, resulting in potential double non-taxation.

    Note that taxing rights in relation to pensions of retired civil servants and other government employees are allocated by tax treaties to the paying country, regardless of the residence status of the recipient.

    Portuguese source income: Employment and self – employment income can be liable to a special 20% flat rate if derived from high value added activities of scientific, artistic or technical character performed in Portugal, as as listed in a Ministerial Order.

    Examples of high value added activities are: Architects, doctors, university teachers , designers, IT technicians , engineers, liberal professions, investors and managers under certain conditions.

  • QUALIFYING FOR THE STATUS
    • Be tax resident under Portuguese domestic legislation and

    • Have not been taxed as a Portuguese resident in the five years prior to taking up residence in Portugal.


    An individual is tax resident in Portugal for any year in which: he is physically present in Portugal for more than 183 days in a calendar year; or on December 31 of the relevant tax year, he has available accommodation in Portugal as habitual abode.

    This information does not replace consultation of the legislation applicable to your particular case.