The President Marcelo Rebelo de Sousa vetoed the More Housing package, which also encompasses proposed changes of the Golden Visa program. This means that law was returned to the Parliament for another vote on 22nd of September.
As the ruling Socialist Party (PS), holds an absolute majority, it has approved again the law in the subsequent vote. As such, the President will be obligated to promulgate the law within 8 days.
The exact time before the Golden Visa changes is unknown. The bill needs to be updated potentially and sent to the President for signing. These steps could be taken somewhat fast.
If you want to proceed please do the following immediately. a) As it takes some weeks, you must request now the criminal record certificate (issued in the last 3 months and by the FBI if you are in USA) and apostille the same. b) Contact us so that we can initiate the legal procedure and select the ideal investment option.
Commercial real estate investment of at least €500,000 located ANYWHERE in Portugal. Minimum Investment is reduced to €400,000 if located in a classified low-density area*.
Real estate purchase of a minimum of EUR 350,000 for the refurbishment of residential properties older than 30 years or in an area of urban regeneration, including the cost of renovations (residential property is limited to designated interior areas). The amount would be reduced to EUR 280,000 if the property is located in a low population density area*.
Investment of €350,000 in touristic or commercial rehabilitation works located ANYWHERE in Portugal. Properties must be at least 30 years old. Investment reduced to €280,000 if located in a low-density area*.
Investment of €350,000 in rehabilitation works in designated interior areas of Portugal. Properties must be at least 30 years old. Investment reduced to €280,000 if located in a low-density area*.
*The threshold will be reduced by 20% should the funds be committed to a low population density area, defined as less than 100 inhabitants per km² or with a GDP per capita below 75% of the national average.
Capital transfer of a minimum of EUR 1.5 million into a Portuguese bank account or specifically approved investment option
Investment in research conducted by accredited institutions that are part of the national scientific and technological system of at least €500,000.
EUR 250,000 in support of artistic production or in the recovery or maintenance of national cultural heritage.
Creation of 10 new full-time jobs within a Portuguese business in the form of a single-member limited company. (Reduced to 8 positions if in a low-density area*).
Investment into an existing Portugal-registered business, or at least €500,000 to either incorporate or increase the share capital and create at least 5 full-time permanent jobs for at least 3 years.
*The threshold will be reduced by 20% should the funds be committed to a low population density area, defined as less than 100 inhabitants per km² or with a GDP per capita below 75% of the national average.
The Golden Visa program has evolved significantly since it was first introduced in 2012. There are now several different real estate investment categories to choose from in addition to the original legislation, with some options starting at Euro 280,000.
Below is a breakdown of the criteria surrounding each investment category and the reduced options.
Portugal’s original Golden Visa legislation requires investors to purchase Portuguese real estate for a minimum of €500,000 or above. The real estate can be residential or commercial; however if the project is residential, it will only qualify in certain interior areas of the country, following the changes introduced in January 2022. Investments can also be of any age, resale, new-build or off-plan. This original option is known as Category 65A-C and is still popular with investors who are looking to purchase property at this price or above, with no limitations on the area or type of property.
Investors purchasing a property in certain locations of Portugal which are considered to have a ”low population density” can benefit from a 20% discount from the €500,000 investment threshold and purchase any property at a minimum of €400,000. As above, the property can be resale, new or off-plan, it just needs to be located within a qualifying area.
To qualify as an area with “Low Population Density”, the location or region should have a permanent resident population of less than 100 people per square km or a GDP per capita that is lower than 75% of the national average.
In 2015 the legislation was amended to include a new category known as 65A-D. The investment threshold can be lowered to €350,000 (a 30% reduction) provided the real estate purchased is more than 30 years old or located in an area of ‘’urban rehabilitation’’ and will undergo refurbishment. Similar to Category 65A-C, the real estate can be residential or commercial; however if the project is residential, it will only qualify in certain interior areas of the country, following the changes introduced in January 2022. Certain parts of Lisbon and Porto are classified as urban rehabilitation zones, making this option extremely popular for those looking to invest in one of the country’s main cities at a lower rate. The cost of the renovation work can be included within the €350,000 investment. The government’s rules regarding how the property can be renovated are extremely stringent and certain conditions need to be met. Undertaking extensive renovation work on an old or derelict property abroad can be a timely and challenging process. The best solution is to invest in a project where the entire process is managed for you. This investment category has become one of the most popular routes in Portugal.
In addition to the above requirements, if the property is also located within a “low population density” area, the minimum investment amount can be reduced by a further 20%, to €280,000. Projects which tick both of these boxes are much harder to come across and when they do become available, they sell quickly due to the high demand and low supply.
It is important to note that all property purchases must be liquid, and no loan or mortgage can be taken in Portugal to fund the required investment threshold. Should investors decide to purchase a property priced above the investment threshold then they may finance the additional amount. For example, a property priced at € 8000,000 would need a minimum cash investment of €500,000, but the additional € 300,000 above the investment threshold may be mortgaged.
To find out more about the various investment projects available, please contact our expert advisors for a personalized consultation.
Investors are no longer able to invest in residential property in popular urban areas such as Lisbon, Porto, and the Algarve, as well as coastal towns like Setubal and the Silver Coast.
Applicants can only buy residential real estate in designated interior areas of Portugal worth at least €500,000 or €350,000 if investing in a rehabilitation project. If the residential property is located in a designated ‘low-density’ area, then a 20% discount applies.
Investors can purchase commercial real estate anywhere in the country worth at least €500,000 or €350,000 if investing in a commercial rehabilitation project. If the commercial property is located in a designated ‘low-density’ area, then a 20% discount applies.
Investors can buy residential and commercial real estate anywhere in Portugal’s autonomous islands of Madeira and Azores, worth at least €500,000 or €350,000 if investing in a rehabilitation project.
Low-density regions
Urban requalification
Cultural heritage
Activities of high environmental or social value
Productivity and job production
Interior areas simply mean areas where you can make a residential real estate investment to qualify for a Golden Visa residence permit. In contrast, for commercial real estate, there are no location restrictions in place. You can invest anywhere in the country, provided that the property in question is classified as ‘commercial’ (licensed for business-related activities).
Please note that properties belonging to ‘interior’ parts of Portugal are eligible for a residential AND commercial real estate investment. However, only commercial properties can be purchased outside of the ‘interior’ parameters.
Low-density areas determine whether a 20% discount rate to your investment applies or not. Low-density regions are defined as territorial units (NUTS III) and have less than 100 inhabitants per square km or a per capita GDP of less than 75% of the national average. Low-density housing tends to refer to buildings with a small number of units or residential areas that are primarily occupied by single-family homes. High-density housing, in contrast, typically refers to urban areas that have a high number of units.
It is possible for an area to be interior and high-density. In this case, you can purchase a residential property but no discount applies.
To qualify for the €280K low-density investment option and take advantage of the 20% discount, the applicant must either:
Invest in a commercial rehabilitation project located in a low-density area of the country.
Invest in a residential rehabilitation project located in a low-density area of the country, which is also classified as interior.
If the investor wants to invest in a rehabilitation project located in a high-density area, costs start from €350,000.
The property in question must either be more than thirty years old and undergoing renovation, or located in a designated rehabilitation area.
If it is a residential property, it must also be located in an interior area.
The Portuguese government is promoting investing in property in Madeira and Azores
Golden Visa applicants can buy real estate or invest in a rehabilitation project (both residential and commercial) on the islands. Both Madeira and the Azores are considered high-density locations and therefore no part of the islands qualify for a 20% discount.
Commercial real estate in Portugal is eligible across the country, without any location restrictions. Investors hoping to buy commercial property or invest in commercial rehabilitation in Portugal’s key urban areas like Lisbon, Porto, or the Algarve, can do so freely.
Commercial yields (long-term lease agreements) can be a good option for investors looking for a solid investment. Examples include office space, franchise stores, restaurants, and deposit areas.
A great opportunity to diversify your investment portfolio, both in terms of hard and intangible assets
Long-term strategy to generate strong and stable returns, with the potential to receive consistent revenue monthly, quarterly, or annually
Rehabilitation of a commercial property, typically in the form of a hotel, are prime opportunities because they are not limited to Portugal’s interior area (you can invest anywhere in the country)
Hotel projects allow investors to invest at reduced rates of €350K, or €280K in low density areas
These projects are turnkey, frequently offering fixed returns or a buy-back after five years
A 350K Golden Visa simply refers to the €350K rehabilitation investment route to a Portugal Golden Visa. To qualify for this option you must buy property in Portugal which is more than 30 years old and needs to be renovated. The renovation costs are factored in when applying for the Portugal Golden Visa. The renovation must be at least 20% of the property price.
Low density areas in Portugal mostly include the countryside / eastern areas in Portugal, with the exception of coastal areas south of the River Lima and North of the River Sado. Popular areas / cities in this category include the Algarve and Coimbra. Here a 20% discount automatically applies to your real estate investment for the Portugal Golden Visa.
Cascais, Madeira and Azores are examples of high-density areas, so no 20% discount applies to your real estate investment for the Portugal Golden Visa.
Portuguese urban regeneration areas are key investment areas that can reap financial rewards. Since the buildings themselves are bought at relatively cheap prices, redone, and then are ready to be rented out, you can usually expect a high return on your investment.
Capital transfer amount requirement has increased from €1 million to €1,5 million.
Investment Fund minimum subscription requirement has increased from €350,000 to €500,000
Investment in scientific research has increased from €350,000 to €500,000
Investment into an existing Portugal-registered business has increased from €350,000 to €500,000
Arts donation of €250,000 stays the same.
The following steps are a guideline and actual procedure may vary depending on the specific situation.
Once the investment has been identified, the legal representative shall review all of the documents for the property (or financial instrument) and, if required, effect changes or draft up a promissory contract (Contrato Promessa de Compra e Venda). The promissory contract describes the property, identifies the owners and the buyers, outlines the terms of the purchase and the timeframe for completion of the sale. This document is agreed upon by all of the involved parties.
The buyer and seller (or their legal representatives) sign the promissory contract and at this time the buyer pays the deposit to the seller. This deposit may range from 10% to 20%
After signing, under Portuguese law, should the buyer withdraw from the purchase they lose the entire deposit they have paid. If it is the seller who pulls out of the deal then the seller has to pay double the amount of the deposit to the buyer.
Once the terms of the promissory contract have been met, then the buyer and seller (or their legal representatives) meet again in order to sign the final deed. The buyer pays the remaining amount to the seller and the seller hands over the keys to the property. The property is then registered in the name of the new owner with the Land Registry and the process is complete.
Property Tax (Immovable Property Tax, IMI) - as an owner of property in Portugal you will have to pay property tax (Immovable Property Tax, IMI). The Tax rates range from 0.3% to 0.45%.
Wealth Tax (AIMI) - AIMI is seen as Portugal's version of a wealth tax, which affects owners with a share in Portuguese property worth over €600,000. The Additional Municipal Property Tax (AIMI) is a tax levied on the sum of the taxable asset values (VPT), as on 1 January of the year to which it relates, of urban residential properties and of land for construction that appear in the land register owned by the taxpayer.
An additional stamp duty (Imposto de Selo) of 0.8% over the value of the deal is payable on purchase.
For non-residents, tax on rental income is set at a flat tax rate of 28%, although maintenance, repair expenses and IMI may be deducted.
The following are the costs to be considered when calculating the investment in real estate for the Golden Visa [the actual break-up and details are project specific and need to be calculated for each investment decision in (min. Euro 280,000)]
Purchase property tax (0.3%-0.45% of investment amount)
Stamp duty (0.8% of investment amount)
VAT
Government (SEF) Golden Visa fees (as stipulated by the government and to be calculated based on the prevailing rates at the time of application for the GV)
Lawyers’ fees (for opening bank account, obtaining fiscal number, scrutinizing property documents, registering the property, applying for the GV, renewal of GV and any other legal costs involved)
As with real estate, the rule governing the Golden Visa investment stipulates that the funds have to be remitted from overseas. The investment of €500,000 can be split across several diversified fund options. Investing in equity funds is attractive mainly due the relative simplicity of the process and tax saving benefits. Funds require less management than the traditional real estate investment route and they are highly tax efficient as well; non-resident investors pay 0% tax in Portugal on their gains.
The three key elements to consider while investing in funds are – Eligibility, Credibility & Profitability
It is vital for Golden Visa investors to align their appetite for risk with the corresponding risk profiles of each of the Golden Visa Funds. There are three common labels to decide which risk category a fund can be categorized under:
Conservative - the least risky profile. Here, typically yield-generating funds which typically have lower returns and lower upside potential, would be the preferred choice. Conservative funds appeal to Golden Visa investors focused on capital preservation rather than profits.
Moderate - medium-risk. Most funds fall into this category as they try to balance medium returns via development projects ans growth-business investments. Moderate funds appeal to Golden Visa investors who want to generate healthy returns on their investment.
Ambitious - the most risky profile with the highest upside potential. Usually reserved for pure venture capital funds which are focused on startups and new technologies. Ambitious funds make educated bets on pioneering businesses with big breakout potential and they appeal to Golden Visa investors who are comfortable risking their capital for higher returns.
Golden Visa Funds are permitted to invest across a range of sectors and the variety of funds is increasing as the overall ecosystem becomes more mature.
A fund's chosen investment sector should play a key role in your investment decision.
Whilst the majority of Golden Visa Funds remain focused on real estate development or yields, others explore opportunities in agriculture, healthcare, tourism, growth businesses, and venture capital which typically covers areas such as technology and startups in general.
Impact investing or ESG investing is starting to play a bigger role in Golden Visa Fund's investment principles and strategies.
Golden Visa investors should consider which sectors they feel most comfortable with and think about whether environmental and social investment principles form part of their investment decision.
Golden Visa investors are permitted to spread their €500,000 investment across multiple funds but you may also find the diversification you need within a single fund that has made diversification a core element of their investment strategy.
Diversifying your Golden Visa investment is an important consideration because it allows you to blend sectors, risk profiles, and, in some cases, different geographical markets.
Keep in mind that investing in multiple Golden Visa Funds will require more paperwork and could slow down your application process. Most Golden Visa applicants limit their investments to just one or two funds.
Capital transfer of a minimum of EUR 1.5 million into a Portuguese bank account or specifically approved investment options
Investment in research conducted by accredited institutions which are part of the national scientific and technological system of at least €500,000
EUR 250,000 in support of artistic production or in the recovery or maintenance of national cultural heritage
Creation of 10 new full-time jobs within a Portuguese business in the form of a single-member limited company. (Reduced to 8 positions if in a low-density area)
Investment into an existing Portugal-registered business, or at least €500,000 to either incorporate or increase the share capital and create at least 5 full-time permanent jobs for at least 3 years.
The Golden Residence Permit Programme (Autorização de Residência para Atividade de Investimento - ARI), launched by Portuguese authorities in October 2012, is a fast-track for foreign investors from non-EU countries to obtain a fully valid residence permit in Portugal (otherwise known as a Golden Visa).
Under the Golden Residence Permit Programme, non-EU citizens must carry out one of the investments set out in the law to qualify for a residency permit in Portugal. This permit allows the investor to enter and/or live in Portugal and to travel freely within the vast majority of European countries (Schengen Area).
Aimed at attracting foreign investment in Portugal, the Golden Visa is a straightforward, flexible program with transparent legal requirements. By reducing the country’s minimum stay requirements, the Portuguese government has made the Golden Visa one of the most attractive residency programs in the world.
The D7 visa, also referred to as the Passive Income visa, is aimed at retired international citizens or other immigrants (regardless of age) with a stable income wishing to reside in Portugal. D7 visa holders may be away from Portugal consecutively for 6 months per year only or 8 non-consecutive months per year (during the validity of each residence permit).These timings may vary, if duly justified for personal or professional reasons.
Applicants have to prove that they have a regular AND reliable income, drawn from any country, from their own resources such as pensions, rents from real estate / other assets, intellectual property, financial applications etc.
Besides the regular income, applicants should be in a position to prove that they have additional funds beyond the minimum required; this amount varies depending on the number of family members composing the applicant’s household.
By October 2022 over 11,200 global investors had participated in the Golden Visa Program and 18,400+ family members had been approved. In Europe, only the UK’s Tier 1 Investor Visa program has raised more capital than Portugal’s Golden Visa Program.
Every year more and more people are taking advantage of the Portuguese government’s residency-by-investment programme showcasing trust in the economy and quality of life provided by this Iberian country.
Once issued, the Golden Visa will be valid for an initial period of one year (since COVID-19, the initial card is issued for two years, however this may change back in future) and can be renewed for subsequent periods of two years.
It is important that the investor seeks a legal representative. The investors are making a sizable investment. As such, it is crucial that no chances are taken during the preparation, submission and renewal of the residency application.
Investors should ensure that the law firm performs these tasks:
In general, all investors have to meet the following requirements:
Kindly get in touch with us so that we can provide the updated government fees.
The Schengen Area includes the following countries: Austria, Belgium, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, The Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and Switzerland.
Once the application is submitted at Serviço de Estrangeiros e Fronteiras (SEF), it can take 12-18 months for the application to be processed. Please note that this is an estimate based on past experience. Time taken by SEF to approve the residency may be shorter or longer.
Yes. You may work during the period of your Golden Visa, as well as after you get the permanent residency permit.
Yes. Under the Golden Residence Permit Program, the investor’s family members can obtain a Portuguese resident permit by applying for a “family reunion”. The Golden Visa can then be extended to dependent family members (children, spouse and dependent family members).
One of the benefits of the Golden Visa is the possibility of applying for the family reunion at the same time as applying for your Golden Visa.
Like the primary investor, these family members may then be eligible for permanent residency after five years and Portuguese citizenship after six years.
The following dependents may apply for the Golden Visa at the same time as the main applicant:
Permanent residency may be granted to those who have successfully renewed their residence permit for a full five-year period. Permanent residency shall be granted to someone who can provide:
The permanent residence permit is granted for life. Notwithstanding, the card has to be renewed every 5 years or whenever there is a change of particulars, namely the holder’s address in Portugal or his / her marital status.
A permanent residence permit is not subject to minimum stay requirements. But, except in the case of the Golden Visa Permanent Residency, a permanent residence permit may be canceled if the holder, without an acceptable justification, is away from Portugal for a period of 24 consecutive months, or for a period of non-consecutive 30 months over 3 years. However, it is explicitly deemed acceptable to be away for any period of time in one’s country of origin in order to carry out a professional, entrepreneurial, cultural or social activity. In practice, SEF will only demand to see proof of the holder having actually lived in the country or of a justification of absence from the country in the event the renewal of the card is requested after its expiry date. As such, provided the renewal of the permanent resident’s ID card is applied for before the expiry date, Portugal’s minimum stay requirements should not be a major concern.
Without prejudice to any special provisions, a residence permit holder is implicitly entitled to:
The legal provisions securing equal treatment to foreign citizens, specifically in connection to social security, fiscal benefits, participation in unions, recognition of diplomas, certificates and other Professional qualifications, as well as the right of access to goods and services available to the public and the application of provisions granting them special rights, are secured
Foreigners must abstain from engaging in activities that lead to convictions that, separately or cumulatively, exceed one year imprisonment, independently from the suspension of sentences delivered on grounds of deliberate crime as contained in the provisions of this Law, or on grounds of terrorism, violent crime or organized crime.
Proving basic knowledge of the Portuguese language is required from every applicant for either permanent residency or citizenship, regardless of the basis on which the application is submitted. The language knowledge requirements for obtaining citizenship are exactly the same as those for obtaining permanent residency. Under the Foreigners’ Law, the applicant for a permanent residence permit must prove having knowledge of “basic Portuguese”. According to SEF (Portugal’s border agency), in case such knowledge cannot be proved, the temporary residence permit will be renewed until this requirement is met. In case the temporary residence permit is a Golden Visa, this may be renewed every two years as long as the required investment is kept in place. The proof consists of a certificate of A2 level proficiency (in accordance with CEFR, the Common European Framework of Reference for Languages) issued by one of the following institutions:
The test has a written and an oral component, but the written component may be waived for people over the age of 60, who are illiterate and for seriously ill or handicapped people. In addition, under 10-year old children and people having special needs may request that the test be adapted to their particular circumstances. Under 18-year old children may not take the test at some of the centers for evaluating the knowledge of Portuguese as a foreign language, but the certificate may be replaced by a declaration issued by a school that the minor has attended.
Unlike residency, the application for citizenship is to be submitted to a civil registry office and not to SEF. However, once citizenship is acquired, passport applications are handled by SEF. Portuguese citizenship by naturalization may be applied to someone who:
The applicants for citizenship must submit documentary evidence of the existence of effective ties to Portugal and / or the Portuguese community, and the State Attorney may oppose the granting of citizenship if such ties are either too few or too weak. Examples of acceptable ties include:
A fiscal number is an identification number for the Portuguese Tax Authority (also known as the tax number). This number is required to carry out the investments. Unless you are a fiscal resident in the EU you will need a fiscal representative in the country.Despite recent alterations that permit residents outside the EU to choose to be notified online rather than have a tax representative, in practical terms, in order to access online notifications, the person will still need a tax representative to acquire the tax number and up until they select to be notified online (via their online access to the Tax Authorities website). It should be noted that even after this stage it is important to have a tax representative, as the notifications (which can contain important deadlines) will be sent entirely in Portuguese and will only be sent to the website, which requires the person to constantly check if they have been notified.
The following documents must be submitted by Golden Visa applicants for the initial application and then for applying for each renewal:
To be accepted, the criminal record certificate (or Police clearance letter) must have been issued no more than 90 days before the date of its submission and, in the case of other certificates, 180 days.
In addition to the above, in order to apply for permanent residency or citizenship, a basic Portuguese language test must be passed.
Except for the passport, in order to be accepted by the Portuguese authorities each document issued outside of Portugal has to be a) legalized and, if it is not in Portuguese, b) translated into Portuguese by means of a certified translation.
The rules governing the granting of Residence Permit for Investment (ARI / Golden Visa), in force from 8 October 2012, enable third country nationals to obtain a temporary residence permit to conduct business activities with visa waiver to enter national territory. The beneficiaries of ARI / Golden Visa are entitled to:
All Non-EU citizens who conduct an investment activity, provided these citizens fulfill the quantitative requirements and the time requirements set out by the relevant legislation, may apply for a Residence Permit for Investment, by one of the following routes:
Portuguese, EU and EEE nationals are not eligible for the ARI / Golden Visa scheme.
Yes, as the investor, you only need to hold the investment during the Golden Visa’s validity period of five years. After this, the investor can sell the property, transfer the money to another country or close the job positions. We recommend that you keep the investment until citizenship is granted.
No, the investor does not need to occupy the property; it can be rented out to obtain income.
Yes, the application can be made in your name or through a Portuguese company fully owned by you.
The investor (or any family member) will only be refused the Golden Visa (or its renewal) if:
No, if the holder of the Golden Visa is not staying in Portugal for more than 183 consecutive days, he / she will not be required to pay taxes for income generated outside of Portugal.
The Golden Visa is a temporary visa and has no impact on tax residency. Only if a person is considered a tax resident in Portugal will he / she be subject to tax here.
Rental income and income arising from capital (e.g. interest, dividends etc.) will be taxed at a flat tax rate of 28%. All expenses related to the property are deductible, such as insurance costs, levies, monthly costs, municipality tax, rental and property management fees, and any maintenance done on the property prior to or during the rental period.
The non-habitual resident (NHR) regime is open to anyone who is a tax resident in Portugal (the person must have the right to reside in Portugal - i.e.,EU / EEA / Swiss citizens or a holder of a residence permit) and has not been a tax resident of the country during the previous 5 years.
The tax regime for non-habitual residents aims at attracting to Portugal non-residents engaged in high value-added activities or receiving income from intellectual or industrial property rights or know-how, as well as beneficiaries of pensions obtained abroad. It is applied for a period of 10 consecutive years.
Foreign-source self-employment or sole trader income derived from an eligible occupation, royalties, capital gains and investment or rental income will be exempt from Portuguese tax as long as they may be taxed in the source country either under a double taxation agreement or under the OECD model tax convention. In addition, such income must not be deemed Portugal-sourced under applicable Portuguese law, and must not be sourced from a blacklisted tax haven.
Foreign-source employment income will be exempt from Portuguese tax as long as it is liable to tax (at whatever rate) in the source country either under a double taxation treaty or under the OECD model tax convention and is not deemed Portugal-sourced under applicable Portuguese law.
Occupational pension income will be subject to a flat tax rate of 10% as long as it is liable to tax in the source country under a double taxation treaty or it is deemed as not being Portuguese-source income under applicable Portuguese law.
If your occupation is eligible (see list of eligible occupations below ), Portugal-source employment or self-employment / sole trader income will be taxed at a flat rate of 20%, while other Portugal-sourced types of income will be taxed at the normal rates applicable to resident taxpayers, the calculation of the applicable marginal tax rate taking into account all income, including exempt income.
Portugal does not tax wealth or capital duty, and an inheritance or a gift received by a spouse, descendant or ascendant is tax exempt. Inheritance or gifts received by other individuals will be either not taxable under territoriality rules, or else may be subject to a flat 10% stamp duty.
The individual must be deemed a resident, for tax purposes, of Portugal when he / she submits the application.
For this one must fulfill one of the following criteria:
In order to qualify as a “non-habitual resident”, a Portuguese national or a foreign individual having the right to live in Portugal must register as a tax resident of Portugal as long as he / she has not been resident in Portugal during the last 5 years. It should be noted that under the law, an unregistered individual will be deemed resident for tax purposes if he / she either spends more than 183 days in the country during a 12-month period, or has a place of abode in the country, “in a way that may lead to the supposition of an intention to keep and occupy it as a habitual home”.
EU, EEA and Swiss citizens have an automatic right to live in Portugal, individuals of other nationalities must obtain a residence permit.
Recognition of non-habitual resident status is not automatic and must be requested by March 31st of the year following that in which the applicant became a tax resident in Portugal. This regime is granted for a period of 10 years upon successful application to the Portuguese tax authorities..
In order to apply, one must fill out the request and provide a statement that the applicant was not resident for tax purposes in Portugal during the 5 years preceding arrival in Portugal. In case of doubt, tax authorities may request additional documentation such as a tax residence certificate from the previous country and / or a document ensuring that the vital and economic interests of the applicant were in another country during the previous 5 years.