The gentle way of life, the gastronomy, the low cost of living are all qualities that have made Portugal one of the favorite destinations of the French. Today, they represent the 7th largest foreign community living in the country. Another reason is undoubtedly tax exemption. Working people and retirees can take advantage of a tax break by moving to this Iberian country, but under what conditions?
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Portugal, paradise for French retirees?
19,800 is the number of our fellow citizens living in this Iberian country. 1/3 of them are retired. There are many reasons why expatriates are attracted to Portugal. First of all, the quality of life, with a Mediterranean climate conducive to a peaceful retirement. The gastronomy and the cost of living, 25% lower than in France, are also important. But it is above all the tax advantages provided for new residents that encourage many retirees to opt for expatriation.
Which tax exemption solutions for expatriate retirees ?
Thanks to the status of "Non-Habitual Residents", retirees can benefit from a tax exemption for 10 years. In fact, foreign pensions are tax exempt in Portugal, but only for private sector pensioners. Public sector retirees are not eligible for this benefit.
Portugal also seduces working people
Implemented in 2009, the status of Non-Habitual Resident aims above all to attract to the Portuguese territory workers with a high added value activity. Doctors, executives and engineers are in the sights of the Portuguese authorities. Portugal offers them a very advantageous tax system with a reduced tax rate of 20% for income related to their professional activity. In addition, there is a total tax exemption for business income and income from foreign assets.
This includes capital gains, interest and dividends. All these elements offer interesting tax exemption solutions for expatriates.
Conditions to settle down in Portugal
In 2009, Portugal instituted the regime of "Non-Habitual Residents" or RNH. It concerns people who settle in the country provided that they have not resided there for the previous 5 years. This status requires an application to the authorities. To qualify, you must be a tax resident in Portugal. This means that you must have stayed in Portugal for at least 183 days during the year of your installation. If this is not the case, you must have a home in the country, as an owner or tenant.
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