&NewLine;<p>Portugal's regime for foreign pensioners&comma; allowing a personal income tax rate &lpar;IRS&rpar; of 10 &percnt;&comma; is one of the most damaging to tax competition in the European Union &lpar;EU&rpar;&comma; reveals a European study published today&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<h2 class="wp-block-heading">Portugal is one of the most dangerous EU countries for foreign pensioners</h2>&NewLine;&NewLine;&NewLine;&NewLine;<p><strong>Portugal is one of the most dangerous EU countries for foreign pensioners</strong></p>&NewLine;&NewLine;&NewLine;&NewLine;<p>This is the conclusion of the&rsquo&semi;<a href="https://www.taxobservatory.eu/fr/" target="_blank" rel="noreferrer noopener">European Union Tax Observatory</a> &lpar;UE&rpar;&comma; an independent body on EU taxation which&comma; in a report published today&rsquo&semi;today&comma; states that "the most striking trend in European tax competition is the&rsquo&semi;increase in the number of personal income tax regimes targeting foreigners"&comma; from five in 1995 to 28 today&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>A provisional classification suggests that the most damaging are the Italian and Greek high-net-worth individual schemes&comma; the Cypriot high-income scheme and the pension schemes of Cyprus&comma; Greece and Portugal&comma; says the&rsquo&semi;European Tax Observatory&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>More specifically&comma; depending on the structure&comma; these schemes are of long duration and offer significant tax advantages, and are only&rsquo&semi;aimed at very high-income earners or do not result in any real economic activity in the&rsquo&semi;member state&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>In total, these preferential schemes now apply to over 200,000 beneficiaries in the EU, according to the independent body, which estimates the total tax cost to the European Union at €4&comma;5 billion a year&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>"This sum is equivalent to the budget of the Erasmus program," compares the EU Tax Observatory in its&period&report;</p>&NewLine;&NewLine;&NewLine;&NewLine;&NewLine;&NewLine;<p>In the case of Portugal&comma; the regime for non-habitual residents &lpar;RNH&rpar; was created in 2009 and applies to high value-added workers&comma; but also to retirees receiving pensions from abroad&comma;&nbsp&semi;<strong>including Portuguese nationals who have worked abroad and are returning to Portugal for their retirement.</strong>&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Modified in 2012 and then in 2020&comma; the plan <a href="https://vivreauportugalconsulting.com/demande-de-rnh/" data-type="page" data-id="6823">RNH</a> provides for the application of an IRS rate of 10 per cent on foreign pension income, according to the most recent amendment;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The status of non-habitual resident also gives workers in professions considered as high value-added the possibility of benefiting from a special rate of 20&percnt;&period; Each non-habitual resident can benefit from this tax regime for a maximum period of 10 years&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>In its report published today, the European Tax Observatory notes that "tax competition is increasingly taking the form of preferential or narrowly targeted tax regimes&comma; in addition to general rate reductions" at EU&period level;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>To reverse these trends&comma; the framework suggests reforming the European Code of Conduct "to make it a binding instrument&comma; and extending its mandate to&rsquo&semi;personal income tax as well as&rsquo&semi;non-preferential corporate tax regimes that lead to generally low levels of taxation of multinationals"&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Furthermore&comma; "in the absence of a coordinated approach &&num;8211&semi; which is always the ideal solution &&num;8211&semi; member states could consider unilateral taxation of their expatriates&comma; which&comma; under certain conditions&comma; could mitigate the effects of preferential personal income tax regimes"&comma; he further suggests&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>As you will have gathered, we believe that the aim of this report is to encourage EU countries that don't offer tax advantages for working people or retirees to introduce a sol&period tax. This is similar to what the United States does for its nationals, who pay their income tax in the United States, regardless of their country of residence&period;</p>&NewLine;
The year 2025 begins with increases in several key sectors in Portugal, marking... Read more
The Portuguese government recently announced an increase in the national minimum wage (SMN) to 870... Read more
Find out how the Portuguese tax system affects companies, with details on taxation,... Read more
The United Kingdom has long been recognized for its economic dynamism, political stability and... Read more
If you want to run an e-commerce business in the UK, it's crucial to know how to... Read more
On September 20, 2024, the Portuguese Tax and Customs Authority unveiled its business plan for... Read more
Our site uses cookies.
Read more