Are you wondering how much tax can you save moving to Portugal and living in Portugal? Portugal has a very efficient tax regime, more so than many other European Countries.
New residents can enjoy significant tax benefits for their first ten years through Portugal’s ‘non-habitual residency’ (NHR) regime. In 2009, Portugal introduced the Non-Habitual Resident (NHR) scheme to encourage wealthy people to move to Portugal. The Non-Habitual Resident regime provides efficient tax regime for the first 10 years of residence. To register for it:
you must not have been tax resident in Portugal for any of the previous five tax (calendar) years
you must spend more than 183 days a year in Portugal, or have a habitual residence here
your submission has to be approved by the Portuguese tax authorities
if you are part of the crew on a ship, yacht or aircraft which is owned by a Portuguese entity
At a basic level, the rules for becoming a Portuguese tax resident are relatively easy. The simplest approach is that if you are in Portugal for 183 or more days in a single calendar year, you will typically be classed as a Portuguese tax resident.
For details about the Tax Regime, please check:
http://www.livinginportugal.com/en/
More sunshine, better healthcare, cheap wine, a slower pace of life, better tax regime, the reasons to move to Portugal are plentiful.
Life in Portugal is surprisingly cheap, the cost of living is about 36% lower than it's in the UK and about 40% lower than the US. Renting costs alone are more than 50% cheaper than the UK and US, making housing very affordable.
“The reasonable cost of living in Portugal has attracted expats from all over the world…..the country is increasingly appealing to more Northern Europeans and Britons who have spied a fine opportunity to stretch their euros and pounds on Portugal’s sun-soaked shores.” Recently the Americans discovered Portugal too, for the very same reasons.