idPortugal may support its clients in complying with the tax obligations related to their stay in Portugal, but also in priorly identifying the appropriate tax framework, in order to reduce as much as possible – always in compliance with the law in force – the tax burden in Portugal.

Compliance with tax obligations

Individuals who relocate to Portugal must, depending on the length of stay, register as tax residents with the Tax Authority, and should therefrom comply with ancillary obligations in Portugal, namely the submission of the Annual Income Tax return and other inherent obligations.

idPortugal has extensive experience in rendering this kind of services and will not only alert customers to the deadlines set forth in the law, but may also support in the correct fulfillment and submission of the ancillary obligations.

Taxation framework

Before the decision to move to Portugal, the current tax framework should be duly analyzed, which includes checking if there is any applicable benefit. idPortugal‘s team is prepared to support this type of analysis.

Within the existing tax benefits, we emphasize the tax regime for non-habitual residents, as it is applied in many of the cases that we are facing involving our clients.

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Non-habitual residents tax regime

The non-habitual residents tax regime allows any citizen, regardless of nationality, to enjoy the Portuguese climate, while benefiting from an attractive tax regime.

Under this regime, most income obtained abroad – namely pensions, dividends and interest – may be exempt from taxation in Portugal.

The income obtained in Portugal, if included in the activities of high added value with a scientific, artistic or technical character, will be subject to an autonomous taxation of 20% in Portugal.

In order to benefit from the non-habitual resident tax regime, taxpayers must:

• Qualify as tax residents in Portugal
• Not have been registered as a tax resident in Portugal in the last 5 years prior to the application of the regime

Taxpayers who benefits from non-habitual resident regime acquire the right to be taxed as such for a period of 10 consecutive years from the year of registration as a resident in Portuguese territory. For this purpose, it has to fulfill the requirement of permanence every year.

idPortugal provides support in verification of the conditions necessary to benefit from this regime, analysis of the fiscal framework applicable in each case, for purposes of obtaining the Portuguese tax identification number, the submission of the application in order to benefit from the regime and, if necessary, in the preparation of the information requested by the Portuguese Tax Authorities.