Large fortunes and pensioners come here for the lowest taxes
Portuguese regime for foreigners is “seducing” the wealthiest pensioners, says the Spanish newspaper ABC.
Portugal is attracting retirees from other countries because of certain tax advantages, including those of the tax regime for Non-Resident Residents, also known as NHR, according to the Spanish newspaper ABC.
The scheme provides for tax exemption or the payment of reduced taxes over a period of 10 years, which has led to applications for these conditions have increased by 45% in the last four years.
For this reason, more and more Spanish pensioners are joining this trend, joining the citizens of Germany, Sweden, France, the Netherlands and Finland, according to the same newspaper.
The Portuguese regions that focus most attention are Lisbon and Porto, but Algarve Madeira also stands out.
The newspaper gives as an example the fact that in Spain a large fortune, which collects 1.5 million euros of work income, pays around 700 thousand euros of tax (48%), while in Portugal, it pays 300 thousand euros (20 %) – the tax is lower.
Data from February reveal that the number of people benefiting from the tax regime of Non-Residents and that in the last IRS declaration reported to the tax authorities receive pension income amounted to 9,589, of which one third is French.