PENSIONERS AND RETIRED PEOPLE: TAX FREE

PORTUGAL TAX REGIME FOR NON-HABITUAL RESIDENTS

 

TAX FREE:

• Retirees or pensioners who wish to establish their habitual residence for tax purposes in Portugal, will benefit from a tax exemption for a period of 10 years

 

COMPETITIVE ADVANTAGES

• No taxation for pensions income obtained abroad

 

HOW CAN YOU BECOME ELLIGIBLE FOR NON-HABITUAL RESIDENT STATUS

• By not having been a resident in Portugal for the last 5 years

• Register at the local tax office as a tax resident in Portugal (to do so you must have remained in Portugal for more than 183 consecutive or non-consecutive days, or having remained for less time, have, on 31st December of that year, a home in such conditions that would lead to the assumption that it is intended to be kept and occupied as your habitual residence);

• Request that the status of Non-Habitual Resident be attributed at the time of registering as a tax resident in Portugal, or by 31st March of the year following that in which you become a resident in Portugal.

 

WHO IS ELLIGIBLE

• Pensioners, stop paying taxes in their country of origin because they now have tax residence in Portugal and will be fully exempt from tax in Portugal, due to the particular legal standards for exemption set by law.

 

IN WHICH CASES IS FOREIGN INCOME OBTAINED BY NON-HABITUAL RESIDENTS IN PORTUGAL EXEMPT FROM TAXATION

• Income is taxed in the source State, in accordance with the convention to eliminate double taxation, signed by Portugal and that State.

• Possibility to buy/rent a dream home in Portugal, financing purchase only with the monthly amount that does not pay taxes on the pension received in their country of origin.

 

This information is not intended to be a substitute for consulting the applicable legislation.