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Portugal offers sun, sea … and tax efficiency

Portugal offers sun, sea … and tax efficiency

The Algarve offers great appeal for anyone looking for a relaxed lifestyle in the sun, but did you know you could potentially enjoy a decade of generous tax breaks – including tax-free UK pension income – by moving here?

Since 2009, Portugal has actively encouraged new arrivals to settle permanently by offering extremely favourable tax benefits through the special non-habitual residence (NHR) tax regime.

Benefits for those working in Portugal
If you are employed in Portugal, you could potentially benefit from a flat 20% income tax rate under non-habitual residence – a significant reduction on the usual scale rates that reach up to 48%. To qualify, you would need to work in one of the pre-defined ‘high value-added’ scientific, artistic or technical professions.

However, you do not have to be employed to be eligible for NHR, so the regime can also be highly beneficial for retirees and other expatriates.

Read more in the Algarve Resident