Portuguese Tax for Expats in Portugal


Portuguese tax for expats- The Portuguese tax regime for non-Portuguese residents, including many Brits that have sought to apply for Non-Habitual Residency (NHR) in Portugal as a result of Brexit, is very attractive. Watch the video about taking advice in the EU.

Tailor Made Pensions - Post Brexit EU Advice on UK Pensions

The NHR regime, for the first 10 years, allows most foreign income to be disregarded and there is a generous ‘flat tax’ income tax rate for certain professions- in order to attract higher net worth and skilled workers.

A recent Budget has not altered rates and Portuguese tax for expats and, despite Brexit, it remains attractive compared to other EU countries for British expats seeking an EU destination to live in (and it is a beautiful country).

Portuguese Tax for Expats- Settling in Portugal

There are generous provisions for Inheritance Tax relating to Portuguese property, though specialist legal advice should be sought or rules of intestacy may result in some members of immediate family inheriting against the deceased’s wishes.

For many couples, wealth tax on property can be avoided if the value of the property is under 1.2million EUROS.

Portuguese Tax for Expats- UK pensions

While non-Portuguese pensions (excepting Civil Service pensions in the UK) are not taxed under the NHR regime, there could always be issues with the UK Lifetime Allowance and planning to avoid or minimise the effects of this will still be important.

Post-Brexit for Portugal, what else should British expats consider?

We have a brochure and advisers who would be happy to provide a meeting with those affected, or those who want to consider moving to Portugal. Contact us below for more information.

Summary

The regime of Portuguese tax for expats is generous, particularly for those with decent UK pension income and the NHR will no doubt save tax and perhaps help bridge the period of early retirement to when the State Pension becomes payable later- possibly when the initial 10 years is over.

 

Article Date 23rd March 2021

The views expressed in this article are not to be construed as personal advice. You should contact a qualified and ideally regulated adviser in order to obtain up to date personal advice with regard to your own personal circumstances. If you do not then you are acting under your own authority and deemed “execution only”. The author does not except any liability for people acting without personalised advice, who base a decision on views expressed in this generic article. Where this article is dated then it is based on legislation as of the date. Legislation changes but articles are rarely updated, although sometimes a new article is written; so, please check for later articles or changes in legislation on official government websites, as this article should not be relied on in isolation.

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