Portugal just became pensioners’ best friend by increasing their income (sometimes almost double) in one simple step; Moving to Live in Portugal.

Just imagine living in a warmer European country, with state of the art Health, 2h-3h away from your country with almost 100% more income on your account and a great value for money lifestyle! This is a Golden Retirement in Portugal.

In 2013 Portuguese government issued new tax laws with excellent news for all those Europeans that have retired and nowadays live from their pension incomes and since then many Europeans have moved into the country looking for a Retiring in Portugal with a Mediterranean climate in order to prevent and safe their Health on a sunny, warmer country.

This new tax regime, that has emerged in Portugal in order to attract investments brought to daylight some new rules to benefit individuals that until now were qualified as non-residents (the Non-habitual Residents or NHR´s).

Benefits for Pensioners Retiring in Portugal

With this approach eventually the Portuguese government ended by giving amazing tax exemptions not only to entrepreneurs and liberal professions but also to all kind of foreign source incomes such as pensions, making possible for them to have a Portugal Golden Retirement.

Under this regime, individuals qualifying as NHR´s are eligible for special income tax rates.

These special rates apply to both Portuguese and foreign sourced income, but as far as it concerns to pensioners they may benefit from potential 100% tax exemptions (on foreign sourced income).

Foreign sourced occupational pensions shall benefit from a tax exemption if they´re not paid by a Portuguese tax resident entity nor attributable to a Portuguese permanent establishment of a non-resident (NHR).

Potential (0%) on Portugal Income Taxes

It is normal countries to have Double Taxation Conventions (DTC) and most of them between Portugal and other European countries assigns exclusive taxing rights to the state of residence.

Therefore, if Portugal decides that will not tax that income then it will not be considered income in Portugal and it will not tax it.

This means that according to Portuguese state, retirees will not pay any income tax when living in Portugal, for at least for the period of 10 years.

Beneficiaries of this Retiring in Portugal

To benefit from this exceptional Tax regime one got to start living in Portugal but must not have lived in Portugal on the last 5 years plus one of the two:

• Be physically present in Portugal for more than 183 days, consecutive or during, in a calendar year; or
• On 31 December of a given year, he has available accommodation in Portugal in conditions which are supposed intend to maintain and occupy as his habitual residence.

Inheritance

Portugal has also a very favourable regime for inheritance assets as for real estate transitions. It is 0% for spouses, descendents and ascendents, who are exempt and for third parties that are charged at 10% Stamp Duty tax rate.

There is no minimum investment so you can buy any kind and any price range of Portugal Property, as long as you make it your new fiscal address.

Retiring in Portugal with much more quality of life is a small step away from your reality. Call us and we will guide you on your new Portugal Property.