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Portugal and its tax advantages

Portugal has 320 days of sunshine a year, surfing, 73 golf courses, an exceptional architectural heritage and is just a two-hour flight from Paris in the European Union.

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 tax treaties with a number of countries, including France. These agreements are based on the OECD model, which recognizes domicile as the reference point for tax purposes. But that's not all. Assets" also benefit from an exceptional tax regime. In particular, they are taxed at 20% on earned 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's an assassin's article in the CGI (Code Général des Impôts), Article 4B, of which we generally only retain the first paragraph. If you stay abroad for more than 183 days, you are considered to be domiciled outside France for tax purposes. But the other two paragraphs give a broader and more subjective definition of the notion of tax residence, and therefore of taxation in France, even if you live abroad. It refers to the main professional activity in France, and more subjectively to "the center of one's economic interests". A catch-all definition that the tax authorities use when they have exhausted the previous two. It 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. 

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