For investors who have applied for a Portugal Golden Visa, local tax resident status is a must-have issue. Next, let’s take a look at how the identity of Portugal’s tax resident is defined?
How to define the identity of tax resident in Portugal?
Portuguese tax bureau defines tax status based on the concept of residence, including tax residents, non-tax residents, and non-resident tax residents.
- Tax resident : Only staying in Portugal for 183 days or more within a calendar year, you will be considered a tax resident in Portugal. Tax residents need to pay Portuguese taxes for their global income and need to make annual tax declarations to the Portuguese tax authorities;
- Non-tax resident : is a non-tax resident who lives in Portugal for less than 183 days and is a non-tax resident who only needs to pay part of the taxes earned in Portugal, such as paying property rental income tax, etc.;
- Very resident tax resident NHR: applied for a Portuguese tax number and has not settled in Portugal in any of the past five years and is not a tax resident.
For applicants who have not yet had the intention to settle in Portugal for a long time, the tax status of NHR (Non-Habitual Tax Resident) is a very favorable existence.
What is the NHR of the tax resident?
NHR is a special tax system approved by the Portuguese government in 2009, aiming to attract foreigners with high value-added potential, such as retirees, skilled employees, investors or entrepreneurs.
NHR is valid for 10 years. tax exemption ranges from full tax exemption on certain types of foreign source income to tax rate of 20% for other types of income. It is roughly as follows:
- is fully exempt from personal income after tax revenue from Portugal for dividends and interest from foreign countries, and income from overseas employment tax in Portugal is fully exempt from personal income tax in Portugal;
- is suitable for "high value-added activities" implemented on Portugal territory, including but not limited to artists, engineers, architects, doctors, software developers, researchers, company executives, etc. NHR allows 20% of the national tax on their work or professional activities, rather than a progressive tax rate of up to 48%;
- is exempt from cumulative tax on foreign source income such as professional income, pension, rental income, capital income, dividends and other investment income under certain conditions;
- is exempt from property tax on current assets;
- is exempt from property tax on current assets;
- is exempt from property tax on movable assets;
- . Tax is exempted from taxation for donating/inheriting funds or assets to spouses, elders (such as parents) or descendants (such as children);
- allows the deduction of maintenance and protection fees paid for property that generates rental income, as well as capital gains of the property;
- does not have any restrictions on remittance transfers of funds.
How to apply for NHR?
As a foreigner who is a non-resident of Portugal, he is a legal resident but does not qualify as a tax resident, he can apply for NHR tax incentives. The easiest way is to apply for a Portugal Gold Residence Permit within three months after obtaining the Gold Residence Permit.
Generally speaking, applicants can apply at the tax bureau or e-balcão on their own, but they must understand Portuguese and understand local tax knowledge, and it involves a lot of tax professional applicability and preparation and review of related materials.
Advantages of Portugal Golden Residence Visa Program:
One person applies, three generations of people are moved ///////;
Free passage 26 Schengen countries;
Residential requirements are relaxed, and you only need to stay for 7 days per year on average;
No business, academic, language, funding sources, etc. Requirements;
can work and do business in Portugal with a Portugal Golden Visa without applying for a work visa again, and the applicant's future income is guaranteed;
can apply to become a permanent resident of Portugal after 5 years of holding a golden residence permit, or apply for nationality in one step;
Portugal passport visa-free 192 countries;
After naturalization, you can enjoy EU national education, medical care, work, free residence and other benefits.
Source-----Official Account-----Milky Tom Yum Soup
