Local retirement tax laws
Local retirement tax laws made it attractive for foreigners to retire to Portugal. The non-habitual resident status can be obtained by individuals moving to Portugal, who will be required to spend at least 183 days a year in the country and have not been resident there for the last 5 years.
Private retirees will be exempted from taxes on their pensions for 10 years. No pension tax is a great advantage, but Portugal has much more to offer with an affordable lifestyle, competitive real estate prices, amazing weather and good infrastructures. Retirement investment in Algarve seems to be quite affordable and definitely a great lifestyle improvement.
Foreign retirees may therefore be able to take advantage of the new Portuguese tax measures, by not paying taxes on their pensions. The country offer many other tax advantages:
- No high income taxes in Portugal (maximum 20%),
- Property taxes well below then other European countries,
- No inheritance taxes (under certain conditions).
- No double taxation of income derived from (provided that such income may be taxed in the relevant state of the source):
1- Investment and capital gains abroad;
2- Rent of real estate abroad Portugal;
3- Employment abroad (self-employed or independent employment).