Portugal is 320 days of sunshine per year, surfing, 73 golf courses, an exceptional architectural heritage and it is in the European Union, two hours by plane from Paris.
Portugal has other advantages. It is also a very attractive tax country. In particular, for retirees, because retirement pensions are tax-free for ten years. There is no wealth tax or inheritance tax and donation between parents and children and the tax system is simple. It is far from the French complexity.
These exemptions have been approved by Brussels
Portugal has 97 international agreements with many countries, including France. Conventions established on the model of the OECD which recognizes that it is the domicile which must be used as a reference for the tax. But that's not all. The "assets" also benefit from an exceptional tax regime. In particular, a tax of 20% on activity income.
To settle down, you need a roof, so rent or buy
And this is another advantage. Real estate prices are much lower than those in France. Even if the beginning of a real estate speculation bubble is appearing in Portugal. You can find on the seaside properties from 2,000 euros per square meter, new and high-end properties in Lisbon at around 4,000 euros per square meter and three-roomed apartments near the capital at 250,000 euros. Or even houses with character in a range of 100,000 to 250,000 euros inland. These prices explain why retirees prefer to buy a property in France rather than rent it, especially since the cost of living is one of the lowest in Europe. French retirees see their purchasing power multiplied by three compared to the Hexagon.
If moving to Portugal remains legal, doesn't a French person risk having problems with the French tax authorities?
There is a murderous article in the CGI (the General Tax Code), Article 4B, of which generally only the first paragraph is retained. If you stay more than 183 days abroad, you are fiscally domiciled outside of France. But the two other paragraphs give a broader and more subjective definition of the notion of tax residence and therefore of taxation in France, even if one resides abroad. It is a question of the main professional activity in France and more subjective "of the center of its economic interests". A "catch-all" definition that the tax authorities use when they have exhausted the previous two. This includes the place of business, investments, company headquarters and why not the fact of directly owning several homes in France. The list is wide.
Portugal likes to gain a resident. But Bercy hates to lose a taxpayer.