Taxation

Why choose Portugal over Italy

&amp;NewLine;<p>Since January 1, Italy has been trying to attract European retirees with its lower tax rates. For those moving to the Peninsula, we thought it would be a good idea to compare Portugal and Italy;  <&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<h2 class&equals;"wp-block-heading" id&equals;"pourquoi-choisir-le-portugal-plutot-que-l-italie">Why choose Portugal over Italy?<&sol;h2>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<h3 class&equals;"wp-block-heading" id&equals;"benefice-fiscal-en-italie">Tax profit in Italy <&sol;h3>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>January 1, 2019 one&amp;nbsp&amp;semi;<em><strong>flat tax<&sol;strong><&sol;em>&amp;nbsp&amp;semi;introduced in the 2019 Italian Finance Act&amp;comma; for pensioners&amp;period; The measure allows pensioners to benefit from a&amp;nbsp&amp;semi;<strong>taxation limited to 7 per cent on retirement pensions<&sol;strong>This taxation is only valid for 5 years&amp;period; <&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p><strong>Conditions&amp;colon;<&sol;strong> settle in one of the eight regions of southern Italy&amp;period; your choice&amp;comma; a village with fewer than 20&amp;period;000 inhabitants&amp;comma; located in Sicily&amp;comma; Calabria&amp;comma; Campania&amp;comma; Puglia&amp;comma; Sardinia&amp;comma; Molise&amp;comma; Basilicata or Abruzzo&amp;period;<&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<h3 class&equals;"wp-block-heading" id&equals;"le-cout-de-la-vie-en-italie">Cost of living in Italy<&sol;h3>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>The cost of living in Italy is more or less the same as in France&amp;period; Expect higher prices in the big cities&amp;period; Note that electricity&amp;comma; gas and telephone rates are higher than in France&amp;period;<&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<div class&equals;"wp-block-image"><figure class&equals;"aligncenter size-large is-resized"><a href&equals;"https&colon;&sol;&sol;vivreauportugalconsulting&period;com&sol;demande-de-rnh&sol;"><img src&equals;"https&colon;&sol;&sol;vivreauportugalconsulting&period;com&sol;wp-content&sol;uploads&sol;2022&sol;02&sol;vivre-au-portugal-1024x576&period;png" alt&equals;"choisir&comma; portugal&comma; italie" class&equals;"wp-image-8647" width&equals;"768" height&equals;"432"&sol;><&sol;a><&sol;figure><&sol;div>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<h3 class&equals;"wp-block-heading" id&equals;"benefice-fiscal-portugais">Portuguese tax profit <&sol;h3>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>Non-usual resident status &amp;lpar;<a href&equals;"https&colon;&sol;&sol;vivreauportugalconsulting&period;com&sol;">RNH&amp;rpar;<&sol;a> allows <strong>10&amp;percnt tax on your retirement pensions;<&sol;strong> for a period of 10 years&amp;period; The <a href&equals;"https&colon;&sol;&sol;vivreauportugalconsulting&period;com&sol;faq-statut-de-rnh-portgual&sol;faq-sur-le-statut-de-resident-non-habituel-suite&sol;">RNH<&sol;a> also enables working people to benefit from a lower tax rate.<strong> limited to 20 &amp;percnt;<&sol;strong> for 10 years&amp;period; <&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p><strong>Conditions&amp;colon;<&sol;strong> You must never have been resident in Portugal for tax purposes in the 5 years preceding your move to Portugal&amp;period;&amp;nbsp&amp;semi; For employees&amp;comma; carrying on a business with high added value&amp;period;&amp;nbsp&amp;semi;<&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<h3 class&equals;"wp-block-heading" id&equals;"le-cout-de-la-vie-au-portugal">Cost of living in Portugal<&sol;h3>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>The cost of living in Portugal is around 20 to 25 times less expensive than in France&amp;comma; in the center and south of the country. <a href&equals;"https&colon;&sol;&sol;portobeautiful&period;com" target&equals;"&lowbar;blank" rel&equals;"noreferrer noopener">north<&sol;a> In the south, prices are more or less equivalent to those in France&amp;period; It should be noted that electricity, gas and telephone rates are close to those in France&amp;period;<&sol;p>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<hr class&equals;"wp-block-separator"&sol;>&amp;NewLine;&amp;NewLine;&amp;NewLine;&amp;NewLine;<p>Europe is already familiar with tax competition between its member states for multinational headquarters&amp;period; but the Italian and Portuguese examples show that the higher purchasing power of pensioners in northern European countries&amp;comma; compared with their southern neighbors&amp;comma; could become a new issue in intra-European competition&amp;period; &amp;nbsp&amp;semi;<&sol;p>&amp;NewLine;

Share

Recent articles

2025: Price rises in Portugal

The year 2025 begins with increases in several key sectors in Portugal, marking... Read more

since 5 months

Raising Portugal's minimum wage

The Portuguese government recently announced an increase in the national minimum wage (SMN) to 870... Read more

since 6 months

IRC reduction in Portugal's 2025 state budget

Find out how the Portuguese tax system affects companies, with details on taxation,... Read more

since 8 months

The advantages of setting up a business in the UK

The United Kingdom has long been recognized for its economic dynamism, political stability and... Read more

since 8 months

UK e-commerce tax rules

If you want to run an e-commerce business in the UK, it's crucial to know how to... Read more

since 8 months

Automatic tax benefits

On September 20, 2024, the Portuguese Tax and Customs Authority unveiled its business plan for... Read more

since 8 months

Our site uses cookies.

Read more