The Investment Tax Code, approved by Decree-Law no. 249/2009 of 23 September, created the tax regime for the non-habitual resident in the Personal Income Tax (IRS), with a view to attracting for Portugal non-resident professionals qualified in activities of high added value or intellectual property, industrial or know-how, as well as beneficiaries of pensions obtained abroad.

 

To whom it is intended:

 

Retired or foreign pensioners, who wish to establish their residence in Portugal, obtaining a tax exemption for the term of 10 years.

 

Taxation:

 

Taxation, over a period of 10 years, at a fixed income tax rate of 20% on income earned in Portugal.

 

The non-existence of double taxation in the case of pensions and dependent and independent work abroad.

 

Who and how can you acquire Non-Habitual Resident Status?

 

Have not been resident in Portugal for the last 5 years;

 

Registering as a tax resident in Portugal at the local Finance Office (for this you must have remained in Portugal for more than 183 days, followed or interpolated, or having stayed for less time, there, on 31 December of that year, housing in conditions which imply the intention to maintain and occupy it as a habitual residence.

 

To request the attribution of Non-Resident status at the time of registration as a tax resident in Portugal or until March 31 of the year following that in which he becomes a resident in Portugal.

 

What is the rate of taxation and incidence applicable to income from domestic sources?

 

In the case of employment or self-employment the applicable tax rate is 20% (with an additional rate of 3.5% in 2014).

 

This taxation is applicable to income from activities of high added value, with a scientific, artistic or technical character.

 

Once the Statute obtained, in which cases is the foreign income exempt from taxation?

 

Where income is taxed in the State of origin in accordance with the double taxation convention concluded by Portugal with that State

 

Opportunity for investment in property, for purchase or lease, guaranteeing the monthly income as proof of exemption of taxes on the reform in their country of origin.

 

BmyGuest Real Estate & Solutions counts on partners in the fiscal and legal area, who can give you all the support. For more information contact us at: info@bmyguestrealty.com