Tax Exemptions Retired Residents

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.


Also, 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.


Additional Information

Golden Residence Programme

Tax Regime Non-Habitual Residents


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