Real Estate Comporta Portugal - Property Agent

Residence and Tax Exemptions in Portugal

Golden Visa Residence Permit Portugal

 

Who may apply?

Citizens involved in an investment activity, individually or through a company, conducting one of the following in Portuguese national territory for a minimum period of five years

I) Capital transfer with a value equal to or above 1 million Euros

II) Creation of, at least, 30 job positions

III) Acquisition of real estate with a value equal to or above €500,000

IV) Acquisition of real estate with a value equal to or above €400,000 in designated areas

It covers shareholders of companies already set up in Portugal, or in another EU State with a stable presence in Portugal and with tax obligations fulfilled

 

Documents required

Passport or another valid travelling document

Proof of legal entry and permanence in national territory

Proof of health insurance

Signed application enabling consultation of the Portuguese Criminal Records by SEF

Criminal Record Certificate from the relevant authority of the applicant’s home country

Or from any other country where he / she resided for over a year

 

Golden Visa Resident Permit - Your Perfect Home

 

Requirements on Investment

Performing an investment activity for five years attested by a bona fide declaration signed by the applicant

Provide evidence of having the ownership of real estate free from any liabilities

An up-to-date certificate issued by the Real Estate Registry

As means of evidence of compliance with tax obligations, the applicant shall deliver a declaration

Proving the absence of debts issued by the Inland Revenue and Customs Authority and by the Social Security

 

Requirements under General Law

Applicants must not have been convicted of a crime punishable with deprivation of liberty exceeding one year

Applicants must not be subject of an entry ban in national territory following a removal order from the country

Applicants must not be subject of alerts in the Schengen Information System

Applicants must not be subject of alerts in SEF’s Information Integrated System issued for purposes of non-admission

 

Family Reunification

The holders of a Golden Residence Permit for Investment Activity may apply for family reunification under the provisions of the General Law at the Portuguese diplomatic or consular posts or at the Regional Directorate and Regional Delegation of the Immigration and Borders Service [SEF] in Portugal

 

Where do I apply?

Online at: • sef.pt

Provided all legal requirements are fulfilled, SEF will notify the applicant to grant a Golden Residence Permit

Provide evidence of having invested the minimum amount required

With the exception of investments in companies not listed in the Portuguese Stock Exchange

A statement issued by a financial institution accredited in Portugal certifying that the applicant is the sole or first holder of capital

Or

An up-to-date certificate issued by the Commercial Register, certifying that the applicant holds a share in the capital of a company

Provide evidence of having created 30 job positions and registered the employees in the Social Security

An up-to-date certificate issued by the Social Security

 

 

Non-Habitual Resident Tax Regime

Non Habitual Resident Tax Scheme - Your Perfect House

 

Benefits for a period of 10 years

Taxation on personal labour income (IRS) in Portugal is set at a fixed rate of 20%

No double taxation on pensions, employment or self-employment income obtained abroad

 

Acquire Non Habitual Resident Status?

1. Non resident in Portugal for the last 5 years

2. Register as a tax resident in Portugal

A. You have stayed in Portugal for more than 183 consecutive or non-consecutive days

B. Remained for less time but have on 31st December, a home in Portugal that is intended to, or occupied as your habitual residence

3. Request the status of Non-Habitual Resident

A. Attributed at the time of registering as a tax resident in Portugal

B. By the 31st March of the following year that you become a resident in Portugal

 

Non-Habitual Resident Status

What is the taxation rate and criteria for domestic sourced income?

 

Employment or self-employment

The Taxation Rate is 20% plus a 3.5% surcharge in 2015

 

Tax on income derived from high added value activities of a scientific, artistic or technical nature

Architects, engineers and similar

Fine artists, actors and musicians

Auditors

Doctors and dentists, teachers and psychologists

Liberal professions, technicians and similar

Senior managers

Investors, directors and managers (when companies are covered by the contractual regime of the Investment Tax Code)

 

Non-Habitual Resident taxed

For 10 years from the year of registering as a tax resident in Portuguese territory

 

Non-Habitual Resident Status

Foreign sourced income of Non Habitual Residents in Portugal are exempt from taxation when:

 

Pensioners / Retired People when

1· Income is taxed in the source State (Subject to the Convention to Eliminate Double Taxation signed by Portugal and that State)

2· Income is not considered to have been obtained through a Portuguese source (Subject to the criteria provided for in the IRS / Personal Income Tax Code)

 

Income from employment, when

1· Income is taxed in the State of origin (Subject to the Convention to Eliminate Double Taxation, signed by Portugal and that State)

2· Income is taxed in another State with which Portugal has not signed any Convention to Eliminate Double Taxation(When income has not been obtained on Portuguese territory as in article 18 of the IRS / Personal Income Tax Code)

 

Income from self-employment:

1. Through services of a high added value, of a scientific, artistic or technical nature

2. Through intellectual or industrial property investment, rental, capital gains income or increased equity when;

 

A· The income may be taxed in the source country, territory or region (Subject to the Convention to Eliminate Double Taxation#)

B· When no convention to eliminate double taxation has been signed the OECD model convention may be applied (Subject to any observations and reservations made by Portugal) (And the source country, territory or region does not have a privileged tax regime) (And income is not obtained in Portuguese territory as per article 18 of the IRS / Personal Income Tax Code

 

 

Tax Exemptions for Retired Residents

Tax Exemptions for Retired Persons - Your Ideal Property

 

Retired persons who establish their permanent residence in Portugal

1. Retired persons who have not had residence in Portugal over the last five years may enjoy a total tax exemption on their pension income for a period of ten years, which in some cases may be extended for further periods.

2. Those who have earned and receive their pension in a country which has a double taxation agreement with Portugal may receive their pension tax free if they establish their permanent residence in Portugal under the legal tax exemptions now being offered.

 

Retired persons considered resident in Portugal for tax purposes if;

1. They stay in the country for more than 183 days

2. Have stayed for less than 183 days but have at their disposal a homestead with such conditions that it is their intention to occupy this property and maintain it as an habitual abode.

3. Be an immediate family member of someone who is considered to be resident for tax purposes as of December 31st of that year that income is received.

 

Note; Take into consideration that if one is resident for tax purposes then there is no Gift or Inheritance Tax between parents, children and grandchildren or husband and wife.