Everyone knows that Portugal is one of the best places in the world to enjoy the great outdoors – with numerous opportunities to hike, swim, snorkel, surf, and more. But, did you know that there are also numerous financial opportunities for you to take advantage of in Portugal? Whether you’ve never been to Portugal, or wish to return to the country of your birth! This regime offers several Non-Habitual Residency tax benefits in Portugal. We’ll look at them in detail below.
Portuguese Tax Treaties
The first opportunity is the fact that Portugal has signed multiple tax treaties. This provides residents with numerous opportunities to reduce their overall tax burden. For example, the United States and Portugal have a treaty that allows for reduced taxes on certain types of income. There are also treaties with France, Spain, and the United Kingdom.
Citizenship by Investment Program (Golden Visa)
The Portuguese Government offers a Citizenship by Investment Program, also known as the Golden Visa. This provides the opportunity for foreign investors to obtain a Portuguese passport. There are several requirements that must be met in order to be eligible for this program, but the most important one is making a qualifying investment of €500,000. This can be done by; investing in real estate, setting up a company, or making a financial contribution to a venture capital fund.
Once you have made your investment, you will need to live in Portugal for at least seven years. This will allow you to obtain full citizenship. There are many benefits that come with this program; such as being able to live and work anywhere within the European Union.
Residence Permit for Investment
The Residence Permit for Investment activity is aimed at attracting foreign investment into the country. This Permit is subject to the following requirements. You must:
- be a national of a non-EU/EEA country
- own a valid passport
- prove legal entry into Portugal
- provide proof of sufficient means of subsistence
- have accommodation in Portugal.
The applicant must also make a qualifying investment. This will include purchasing real estate, investing in artistic or cultural projects, creating or acquiring a Portuguese company, or investing in research and development activities.
After five years, the investor can apply for permanent residency.
Residence Permit for Private Interest
The Residence Permit for Private Interest allows foreign nationals to live in Portugal for private or professional reasons. Just so long as they can prove they have the financial means to support themselves.
This permit is valid for one year and can be renewed indefinitely. After five years of living in Portugal, holders of this permit can apply for permanent residency.
The Non-Habitual Residence Regime is a tax regime that applies to individuals who become residents of Portugal for the first time. It offers several benefits, including a 20% flat tax rate on foreign source income and a reduced 10% tax rate on certain Portuguese source income.
Retiring to Portugal
If you’re looking for a warm and welcoming place to retire, Portugal should be at the top of your list. Not only does the country offer stunning scenery and friendly locals; but there are also numerous financial opportunities for you to take advantage of.
Such as The Non-Habitual Residency Regime – If you’re not a Portuguese resident, but become one, you can take advantage of this regime which offers several tax benefits. This regime allows you to obtain a Certificate of Non-Habitual Residence, which can give you residency for renewable periods of five years.
