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To Make it Simple.
We support our clients on how to benefit from the non-habitual resident tax regime which allows entrepreneurs, professionals, pensioners or high-net worth individuals to possibly enjoy a tax-free life.
Global & domestic income:
- 10 year tax holiday for tax on global income if stay in Portugal is < 183 consecutive days;
- No wealth or inheritance or gift taxes in Portugal;
- 28% tax on long term rental income less properly documented direct costs (does not include financial costs) and on investment income such as interest, dividends etc.;
- 25% on wages, fees, royalties, commission & pensions;
- 12.50% of gross income – for short term holiday rental such as AirBnB, Bookings, Expedia, Hotels etc. through a property manager;
- Capital Gains Tax (“CGT”):
- The sale of a primary residence maybe wholly or partially exempted if the proceeds are re-invested in another primary residence within 36 months;
- Otherwise, CGT is taxed at 28%
- 6%, 13% or 23% VAT for various basic necessities, food & drink and goods & services.
There are three taxes in Portugal related to property:
- “IMT” or “Property Transfer Tax”, which is the tax on transfer of ownership of property;
- Stamp Duty =< 1%;
- “IMI” or “Council Tax”, which is the annual municipal property tax paid twice per year; it is levied between 0.3% and 0.5% on the property’s location and tax value.
Note: The exact amount of taxes to be paid varies according to the actual value of the acquisition.
Non Habitual Residency Tax policy:
The non-habitual resident tax policy has been created for those foreigners that have the right to reside in Portugal (Golden Visa investor with other businesses in Portugal) and have not been tax resident of the country during the previous 5 years.
- Foreign sourced self-employment income, royalties, capital gains, investment and rental income are exempt from Portuguese tax provided these are taxed in the income source country and not sourced from a blacklisted tax haven;
- Foreign-source employment income will be exempt from Portuguese tax as long as it is liable to tax (at whatever rate) in the source country;
- 20% flat tax rate is applicable in the event income is Portugal sourced for employment or self-employment;
- 10% stamp duty may be applicable on inheritance or gifts by individuals other than a spouse, descendant or ascendant.
For further information about fees & taxes.