Paying your taxes in Portugal in an efficient way

Income tax in Portugal applies to the following:

• Employment income
• Self-employment income
• Income generated from investments
• Capital gains – for example, property sales, shares etc.
• Portuguese pensions and private pensions
• Rental income generated from properties let in Portugal

You should be aware that the rates are different for residents and non-residents.

Expats can take advantage of special tax regimes. The non-habitual resident (NHR) regime in Portugal can reduce tax rates and offer tax exemptions in some cases for up to 10 years.

Residents in Portugal pay an income tax rate of up to 48%. However, those with NHR status pay a flat rate of 20%. NHR also benefits those looking to retire in Portugal, with pensions taxed at the lower rate of 10%.

To qualify for NHR status, you must not have been a tax resident in Portugal within the last five years.

The tax system in Portugal is very different to that of the UK. For this reason, we recommend speaking with one of our experts who can advise you based on your situation.

Our bespoke approach to tax planning will ensure you are as tax-efficient as possible. If you would like to find out more, contact us using the form below.

Why choose Holborn Assets?

1. Certified Credentials

   Our investment professionals hold a variety of prestigious investment qualifications from recognised professional bodies such as the Chartered Insurance Institute, London Institute of Banking & Finance, Chartered Institute of Securities & Investment and CFA (Chartered Financial Analyst) Institute. We encourage all advisers to keep studying to keep their qualifications relevant and up to date.

2. Registered and Regulated

   We benefit from appropriate regulation in all our geographical areas of operation and have been operating successfully in the field of investments since 1998.

3. Strategic Credentials

   Our strategy is about advising our clients on the investments that are best for their individual needs. We appreciate that it is your money, that you have worked hard for it and want to keep it and see it growing. We don’t believe in taking unnecessary risks. That’s why the portfolios we offer are diversified and our advice is focused on ongoing management and a steady hand over the long term.