Retired Foreigners Tax Regime

Retired foreigners who wants to establish his permanent residence in Portugal (for tax purposes), and has not had tax residence in Portugal in the last five years, enjoys a total tax exemption for a period of 10 years. This term may be extended.

Those who benefit from a pension paid in a country with which Portugal has established double taxation agreement, will no longer pay taxes in their country of origin because is now a Portugal habitual resident and also will not pay taxes in Portugal under the special legal exemption.

There shall be considered as resident in the Portuguese territory any person who, in the year to which the income relates:

(i) Stays there more than 183 days, with or without interruption;

(ii) Having stayed there for less than 183 days, has at his own disposal on 31 December of that year a dwelling place in such conditions that it may be inferred that there is the intention to keep and occupy it as an habitual abode;

(iii) Be a member of a family unit,  since whom,  the 31 December of the year that the income relates, one  of the elements of this family unit is considered a resident for tax purposes in Portugal.

Furthermore, tax wise, Portugal offers extraordinarily comparative advantages, namely: No gift tax; No inheritance tax (between parents, sons, grandsons and husband and wife)

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