Tax advantages for retirees and professionals considered high value

The legal regime already exists since 2009, however there had to be a clarification of the tax law, which occurred through the State budget law for the year 2013, following an August 3, 2012 tax circular (Circular No. 9/2012)

Portugal became, therefore, a country more attractive from the point of view of taxation within the European Union. To benefit from this status, will be interested to get non-habitual resident status, in accordance with paragraphs 1 and 2, art. 16 of IRS code, fulfilling the following conditions: in the year in which it intends to obtain the tax status of habitual resident, must obtain the tax residence in Portugal, i.e. reside in Portugal for a period exceeding 183 days per year, or stop a property on 31 December of the same year, what does assume that the stay in Portugal will be extended; on the other hand, in the five years prior to the transfer of residence to Portugal, was not fiscally resident in Portugal. The application for this special tax status should be made when the transfer of the residence to Portugal, or no later than 31 March of the following year.

The application shall be accompanied by a statement through which ensures that in the previous five years does not meet the conditions to be considered a tax resident in Portugal. When there are founded evidence of lack of veracity of the elements set out in this Declaration, the tax administration may request the taxpayer additional elements; for example, a document attesting the residence abroad issued by any official entity of another State, or other suitable documents showing the existence of personal relationships and narrow economic with another State in the relevant period.

Not only pensioners can benefit from a highly advantageous tax regime, but also the professionals who exercise an activity of great added value, such as doctors, engineers, architects, psychologists and others listed in a list drawn up by the tax administration, case obtain the mentioned non-Habitual resident status, benefit from a rate of only 20% reduced IRS.