Portugal is the end of RNH

The end of the RNH in 2024, this was the announcement made by Portuguese Prime Minister Antonio Costa yesterday on CNN Portugal. The Portuguese Prime Minister made a shock announcement, announcing that the non-resident tax regime, which gives foreign pensioners and workers a ceiling on their income tax, would end in 2024.

Portugal is the end of RNH

The head of government announced the end of the special tax on non-habitual residents (RNH), in an interview with CNN Portugal. « Il prendra fin en 2024 », a déclaré M. Costa, avant d’ajouter que ce régime fiscal « n’a plus de sens à l’heure actuelle ».

In 2022, according to the latest figures, tax expenditure under the IRS regime for non-habitual residents rose by 18.5 % to 1,507.9 million euros. Two years earlier, this figure stood at 972.2 million euros, and by 2021 it had risen to 1,271.8 million, according to the report on tax expenditure sent to Parliament this year.

This scheme allows workers whose activities are considered to have a high added value to pay a tax on their earnings. special rate of 20 % IRS on income in categories A (salaried employment) and B (self-employment). Pensioners pay an IRS rate of 10 % on their pensions.

Interrogé sur la perte de revenus, le Premier ministre a déclaré que « le gouvernement n’opposera aucune résistance » à l’augmentation du salaire minimum au-delà des 821 euros prévus, faisant référence à la proposition de négociation de l’UGT dans le cadre du dialogue social.

Concernant les propositions patronales, le Premier ministre a déclaré qu’il n’était pas question de rouvrir les débats sur le TSU. « Rouvrir les débats sur le TSU est la dernière chose dont la société portugaise a besoin et qu’elle souhaite », a-t-il déclaré. En ce qui concerne le paiement du 15ème mois, exonéré d’impôts et de cotisations, M. Costa a souligné que cette mesure « n’est pas pour tout le monde » et a déclaré qu' »il y a de la place » pour négocier une augmentation « pour tout le monde ».

The Chief Executive was interviewed by CNN Portugal and answered a series of live questions on the topics on the agenda, from the start of the new school year to housing issues and the new National Health Service model. Several questions were also put by the audience, made up of a group of citizens selected by GfK and representing different social strata and professions, different ages and different regions of the country. This group of citizens was joined by students and professors from Nova SBE.

Link to the Prime Minister's announcement