Fiscal benefits of investing in Portugal

Portugal offers a selection of extremely attractive investment advantages for those choosing to invest in property in the country, with favourable tax regimes and special residency visa permits available.

Non Habitual Residents (NHR)

This regime allows for tax exemption on almost all income from foreign sources and a flat income tax rate of 20% on the majority of revenue sources, such as salaries.  Some other advantages of this special tax regime include:

  • Tax exemptions on pensions
  • Tax exemption on inheritance
  • Tax exemption on capital gains income
  • Tax exemption on dividends and interests.

The NHR is available to all individuals becoming tax resident in Portugal (if they were not Portuguese tax residents in the previous 5 years) and the status is granted for a period of 10 consecutive years. To be considered as a tax resident, the individual should remain for more than 183 days in Portugal during the relevant fiscal year or have a dwelling in Portugal at 31 December of that year with the intention to hold it as his or her habitual residence.

 

Portuguese Residency Visa Permit – The Golden Visa

This special residency card is aimed at any non EU nationals who are looking to gain a visa to allow free travel in the European Union and Schengen Countries.

The Golden Visa is granted to individuals who:

  • Buy a property in Portugal with a value equal to or greater than €500,000
  • Complete a minimum period of stay in Portugal of 7 days in the first year
  • Complete a minimum stay of 14 days during the subsequent periods of 2 years
  • After the 6th year a definitive permit shall be issued with the opportunity to apply for Portuguese citizenship.
     

Find out more about how you can take advantage of all of the benefits of becoming a property owner in Portugal by speaking with a member of the Official Real Estate team today.