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.