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Tax regime non-habitual resident in Portugal

Do you want to improve your purchasing power? By paying less tax?

The non-habitual resident tax system (RNH) in Portugal was introduced in 2009. Within the framework of the Investment Tax Code. Despite the revisions of the tax law that follow each year, the tax regime for non-habitual residents has remained faithful to its initial objectives.

This tax regime allows certain categories of assets to benefit from a reduced tax rate of 20%. Regardless of the amount of your income. They allow pensioners to benefit from a more competitive tax rate, for example 10%. On certain incomes received abroad such as pensions from private sector.

The tax system for non-habitual residents origins

The tax regime for "habitual non-residents" is provided for in the IRS Code. It was introduced by Decree-Law No. 249/2009, of September 23, and supplemented by Ordinance No. 12/2010 of January 7, with the aim of attracting qualified professionals, investors and foreign retirees to Portugal.

most of the earned income Income earned abroad by "non-habitual residents" can be exempted in Portugal, provided certain rules are met. Thus, the income from work obtained by a "non-habitual resident" abroad can benefit from an exemption, under certain conditions.

Non-customary resident status for retirees from 2020

On February 7, 2020, the government voted to reform the non-habitual resident status for foreign retirees. This one has decided to implement a minimum tax of 10 %. This reform of the RNH status will go into effect in 2021. 

Income tax in Portugal

The equivalent of the French income tax is called IRS (Imposto sobre o Rendimento das Pessoas Singulares). It is paid by employees and pensioners living in Portugal. After the 10 years of exemption provided by the non-habitual resident tax regime (RNH) have elapsed, an asset will be subject to the IRS.

The Wealth Tax - ISF The Solidarity Tax on Wealth (ISF) does not exist in Portugal.

For your information, the official scale of public finance for the Portuguese taxpayer.

Less than 700014,5%
From 7000€ to 20 00028,5%
From €20,000 to €40,00037%
From 40 000€ to 80 00045%
Above 80 000€.48%
non-habitual resident tax regime

Tax income in Portugal

It should be noted that some passive income can also be exempt from taxation at Portugal under certain conditions linked to the tax treaties between the different countries.

Among the passive incomes that can be concerned are interests, dividends, other capital incomes and real estate incomes as well as capital gains from foreign sources.

As far as inheritance tax is concerned, free transfers made in the context of a death or a donation are exempt from stamp duty. However, descendants or ascendants and married persons are concerned. For this reason, the exemption does not apply to real estate located in Portugal.

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