As of March 31st, 2020, changes were made where now a charge of 10% tax will be levied on foreign pension income after the government experienced pressure and criticism from other European countries for ‘discriminatory’ tax benefits.
However, 10% is still a lot lower than other countries around the world and in some cases, it is half.
The NHR does still offer a flat income tax rate of 20% for those employed in Portugal in one of the pre-defined ‘high-value’ professions and you are still able to obtain foreign income without attracting Portuguese tax for the first ten years in Portugal.
This does include certain capital gains, rental income, interest and some dividends.
A great advantage of the NHR is that you do not need to be a EU national so Brexit will in no way affect eligibility, although, an important criteria is that you must not have been a resident in Portugal within the past five tax years and meet the Portuguese conditions for residence.
For those who do not qualify for the NHR, Portugal still offers major tax appeals when compared to other European countries and it is ranked the best country in the world for expatriates quality of life.
If you are interested in applying for Non-Habitual Residency or quite simply would like more information before applying, speak with the real estate experts at Ideal Homes International.
They work with highly recommended lawyers who can assist and advise on everything you need to know in order to make a decision.
+351 289 513 434 | 0800 133 7644
** Please be advised tax rates, scope and reliefs are subject to change. Any figures discussed or obtained are based upon our understanding of the current taxation laws and it is always recommended you seek professional and personalised advice.