Portugal is very well positioned to become the leading retirement destination in Europe, and among the best in the world. Already Portugal has been ranked among the top 10 retirement destinations and the Algarve The Best Place in the World to Retire, 3 years in a row.
We are very experienced in the Non Habitual Resident regime which previously allowed qualifying retirees to become resident in the country and receive their pensions tax-free for 10 years; however, this was recently increased to 10% from zero, in 2020.
We have had clients from more than 10 countries who have become tax-resident in Portugal and benefited from 0% tax on their pensions (although this was increased to 10% from zero, in 2020). Even though we have practical, hands-on know-how of the regime, we are not authorised to provide tax or similar advice and so we would always, after an initial analysis of your requirements and if the situation warranted it, refer you to one of our panel of tax and retirement specialists, to ensure that you have at your fingertips years of experience in the field of retirement to Portugal, and all its associated implications.
With Portugal not (previously) applying inheritance tax for estate transfers to close relatives, and property wealth tax only applying on real estate assets with a patrimonial value greater than €600,000 (or €1.2 million for couples) a rental solution avoids Portugal’s IMI or property tax which is paid annually by home owners. Rental, especially when linked to NHR, is an extremely tax-efficient solution.
Our company has quickly positioned itself as one of Portugal’s leading NHR solution providers. We believe we have one of the most varied set of client nationalities in the country (more than 20). We specialise in assisting clients with buying a property or those who need renewable annual rental contracts, which by law must be a minimum of 183 days to comply with NHR requirements but which can also, based on requirements from governments in other countries, be negotiated for longer lets. With the scarcity of long-term and full-year rental accommodation due to a competing (and increasingly successful) summer rental market, we are one of the best options to find suitable NHR-compliant accommodation, and support you in ensuring you have appropriate supporting documentation.
Linked to the subject of retirement is the need to understand whether and how your pension can be paid outside your country of origin. This may require the set-up of compliant structures, approved by the regulatory pension body at source.
We are typically able to organise a free professional assessment of our clients’ personal situation with one of our specialist partner firms. These specialist firms are also able to indicate which revenue categories might qualify from a tax saving, in the context of the double tax treaty which exists between Portugal and the respective country from which the revenue stems.