A recent report has revealed that since the start of 2013, 200 ‘millionaire’ pensioners have made the move to Portugal and this can be attributed to a new tax incentive specifically designed to attract wealthy new residents.
Article written by The Overseas Guides Company
The new incentive allows pensioners who opt to spend some of each year in Portugal to apply to become completely exempt from tax on a foreign-sourced occupational pension.
How do you qualify, I hear you ask? Well it’s a relatively easy process which involves the pensioners applying to become a ‘non-habitual resident’ at their local tax office in Portugal. One this status is granted, no tax will be due on private pension income which comes from an overseas source. As this income is often non-taxable in the country of origin – this effectively results in a completely tax free pension.
This successful scheme is just one in a line of incentives introduced by the Portuguese government to attract wealthy residents who will improve the economy.
Another incentive is the “golden residency” scheme which allows non-EU residents to effectively buy Portuguese residency by investing in business or property.
Anecdotal evidence suggests that the details of these new rules can take time to filter down to local government offices and tax departments. It’s therefore essential to seek financial advice from a specialist who fully understands taxation both in Portugal and your country of origin.
However, for those who manage to navigate the red tape, Portugal now offers a great tax regime for pensioners to complement the 300+ days of annual sunshine!
For details of property for sale in Portugal, visit the Portuguese listings on Rightmove Overseas. One way to save money when buying property in Portugal or moving there is to use currency exchange specialist Smart Currency Exchange when transferring your pounds into euros. For more information on this, visit the Currency Zone.
To understand the full step-by-step process to buying a property in Portugal, collect The Overseas Guides Company’s ‘Portugal Property Buying Guide’
The views and comments herein are those of the author and do not necessarily reflect the views or opinions of Rightmove Overseas, Rightmove Group Ltd or Rightmove Plc