Pensioners, Foreign Assets or Portuguese immigrants that change their tax residence to Portugal, can obtain the Non-Habitual Resident status, provided they stay at least 183 days a year in the country or have a primary residence in Portugal on the 31st of December of the previous year, as well as not have declared in the last 5 years taxes on personal income in Portugal.
This Non-Habitual Resident status can be enjoyed for 10 years, and allows:
- Exemption from Personal Income Tax in the event of retirement,
- Maximum Personal Income Tax rate of 20%.
It should be noted that there is no double taxation on income, due to tax treaties between the European countries, nor inheritance tax in Portugal.
In addition to the tax advantages there are other benefits, in particular the cost of living in Portugal, the exchange rate stability afforded by the Euro zone and the easiness of transferring money that a bank account in Portugal allows.
Tax incentives for the Non-Habitual Resident