Portugal's new tax regime for expats (2024)
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- Опубликовано: 10 июл 2024
- IMPORTANT - PLEASE READ REGARDING THIS CHANNEL
The content on this channel is for educational and information purposes only. It should not be relied on as advice, and you should always take qualified advice before making any changes to your personal position.
Whilst I have experience in the financial and tax industry, this channel is for recreational purposes and is not an advertisement for my business or services. Its purpose is to share quality information.
Whilst every care is taken as to the accuracy of the information in these videos, the information provided is based on the understanding of the rules at the time, and rules can change with little or no notice.
Whilst I cover a wide range of issues on the channel, in my professional role I specialise in tax efficient investments, UK and overseas pensions, estate planning, and wealth management for expatriates based in Portugal. Unfortunately, I do not offer visa or tax return services, nor can I assist US nationals.
Thank you for your support and understanding. I hope to continue to provide you with valuable information to help you with your life in Portugal. If you have any suggestions for content you would like to hear, please let me know
2024 is a transitional year for new residents to Portugal in that they have (potentially) three different tax regimes under which they could be taxed.
The Non Habitual Residence regime which started in 2008 has been closed to new entrants from 1st January 2024. However, there exists transitional rules that could still offer the possibility of qualifying under the now defunct regime. Please see article below for further details on this:
spectrum-ifa.com/nhr-in-portu...
With the closure of the old regime came the introduction of a new regime for those relocating to Portugal. As of yet it has no name so some are calling it NHR 2.0 or the “new Non Habitual Residence” regime.
If you cannot qualify under either of these schemes then you simply enter the standard Portuguese tax system.
In this video we provide a brief overview of the key details.
Timestamps
01:09 Non Habitual Residence
02:00 Benefits of Non Habitual Residence
02:42 Main drawback of Non Habitual Residence
03:18 High valued activities under Non Habitual Residence
04:10 Transitional rules for Non Habitual Residence
04:56 The new tax regime
07:00 Benefits of the new regime
07:50 Exceptions - pension income and income from blacklisted jurisdictions
08:32 Standard Portuguese tax residence
IMPORTANT - PLEASE READ REGARDING THIS CHANNEL
The content on this channel is for educational and information purposes only. It should not be relied on as advice, and you should always take qualified advice before making any changes to your personal position.
Whilst I have experience in the financial and tax industry, this channel is for recreational purposes and is not an advertisement for my business or services. Its purpose is to share quality information.
Whilst every care is taken as to the accuracy of the information in these videos, the information provided is based on the understanding of the rules at the time, and rules can change with little or no notice.
Whilst I cover a wide range of issues on the channel, in my professional role I specialise in tax efficient investments, UK and overseas pensions, estate planning, and wealth management for expatriates based in Portugal. Unfortunately, I do not offer visa or tax return services, nor can I assist US nationals.
*Thank you for your support and understanding. I hope to continue to provide you with valuable information to help you with your life in Portugal. If you have any suggestions for content you would like to hear, please let me know*
Very informative, we are looking at Spain, Portugal and Bulgaria as destinations. Would love to set up a consultation with you to Discuss tax. We would qualify for a dnv.
@@DeepDank Thank you for your comment. Due to time restrictions, I can only offer initial consultations focusing on investment and pension planning for those moving to Portugal. Best wishes, Mark
confused more after watcing this i think need another very basic simple video for expats or newcomers in 2024.
Yes, it can be very confusing. I recommend getting individual advice so somebody can talk through how the different rules would apply to your situation. Best wishes, Mark
Very good 👍 thanks
Thank you :-)
IMO they ruined Portugal for most expats who still work.
Now, the average Joe who works remotely can't go to Portugal anymore.
Portuguese salaries are terrible, so we would live in Portugal and work for other countries...now that won't work anymore, because standard taxes in Portugal are too high.
It has certainly made it more challenging but there are still opportunities.
Good video
If a British citizen becomes a tax resident in Portugal today and is unable to benefit from the NHR scheme, how much tax would they pay from dividends paid from a UK company?
I own a limited company in the UK. The company owns property and ETF global funds. My company pays corporation tax on its profits and any profits withdrawn are taken out by way of dividends, but if I move to Portugal I’m not sure how dividends are taxed. In the UK dividends are taxed at 8.75% up to £50,000. My understanding is that in Portugal dividends are taxed at 28% approximately?
@@carlyndolphin Yeah, I think that's correct. Portugal taxes are crazy high. Better go to Spain which still has its "beckham law".
Hi Philip. Correct 28% flat dividend tax here. Best wishes, Mark@@carlyndolphin
Portugal tax regime and bureaucracy (not to mention the cost of everyday groceries!)......makes me realise how cushy we have it in the UK! I can put up with a drop of rain!
Hi, I have a doubt. If now in 2024 a person living in Spain wants to move to Portugal and take advantage of the old NHR, if he obtains a rental contract dated before (December 31, 2023 or October 10, 2023), would it be enough to qualify for the old NHR? 😅
It would have to be pre October 2023. Good luck
Wow I almost moved there had my NHR ready to submit just had to give them the ok and I pulled the pin last minute as I scored a great new job. I was about to retire on my crypto profits thinking NHR didn’t tax crypto 😅 wow if they tax stocks at 28% then they must def charge crypto at 28 ? Or they still haven’t announced a tax rate for crypto ?
Crypto is generally tax free if held for more than 1 year. Please take advice though
Hello. I would like to ask for an extension to file for my return, how can I do that and where can I write to the tax office (AT) ? I do not have access to the finance portal. Thanks.
Thank you for your comment. An Accountant can guide you through this process if you do not have access to the portal
Thanks for the video, very helpful. I’m looking to move from Switzerland to Portugal later this year. When I leave Switzerland I can cash in part of my pension and pay Swiss withholding tax & transfer the money to my Portuguese bank account. However, I’m concerned that when I become Portuguese tax resident that money will be subject to tax in Portugal as it may be considered as income. Can you provide any information about this?
Thank you for your comment. As long as you took the income PRIOR to becoming tax resident in Portugal, then Portugal cannot tax you. Best wishes, Mark
@@taxfinancialadviceinportug4745 Thanks, that is really helpful. My only concern is that I can only get the pension lump sum when I de-register from Switzerland, which implies tax residency elsewhere. Would staying in Switzerland as a tourist for a month after de-registering, transfer the pension lump sum during that period to Portugal and then registering as tax resident in Portugal be an option?
This requires careful planning and I would seek personalised advice. Kind regards, Mark@@Big_Vern69
How much tax digital nomads should pay for foreign income tax with no DTA? 0? 20% flat or more? 🧐
Are you assuming you will qualify for the new tax incentive scheme?
Thx for the video.... questions please/background first: Another Portuguese (native Portuguese person) tax consultant recently told me significantly different information that you provided here, leaving me confused about the following. 1. Multi-year SEF/AIMA delays for 2022 Golden Visa application (that by Portuguese law should take a few months max) could realistically mean no residency permit in hand until AFTER 2024. Is there any solid reason to believe that competent authorities will grandfather-in the right to NHR 1.0 regardless of how many years of delay before residency permit issuance that are entirely due to SEF/AIMA? 2. So far you are the first specialist I've heard to state that NHR 2.0 will provide zero tax for foreign sourced income. In your opinion would a freelance engineer US citizen working for US client be exempted from Portuguese tax for their freelance income under HNR 2.0? If yes, please refer me to any official govt. reference backing that up? 3. It would be great to see a worked-example of 'normal' income tax calculation for Portugal where income straddles multiple progressive bands and for a married couple with different incomes. I cannot find one anywhere. Thanks so much!
Thank you for your comment. Your questions need comprehensive and personalised answers so I would strongly recommend you speak with a tax lawyer here, but to summarise 1. yes, delays certainly are an issue here at the moment and I'm not sure if there will be any allowances for these delays when applying for NHR 2. in my opinion, engineering was considered high value under the old NHR regime (taxed at a flat rate of 20%), but would not be one of the qualifying activities under the new regime 3. a tax lawyer would be able to do this for you - it is even more complex for US citizens as you will always remain taxable in the US - this is unlike any other country so the calculation would have to take this aspect into account too.
Your view of NHR 2.0 is aimed more at working people rather than pensioners. Does that mean pensioners would now fall into the standard Portuguese tax system?
Hi Peter. It isn't my view - it isn't simply how the new scheme has been structured i.e. to attract people that are working in certain fields and pension income is specifically excluded from benefiting (unlike the old Non Habitual Residence regime which incentivised retirees as well as those still working). You're right - pensioners will now fall under the standard tax system which may in fact be better than your home country. It requires an individual analysis. Best wishes. Mark
@@taxfinancialadviceinportug4745 Sorry, badly written by me. I meant your description highlighting that change from the earlier NHR. I follow what you say.
No problem Peter. Kind regards, Mark @@petearmstrong2778
Can you be more specific about those who own foreign businesses?
There is a provision in the new rules such that you may be able to qualify as a "high valued activity" and therefore qualify for the new scheme. But it is very nuanced and needs an individual analysis of each person's situation. All the best
Thank you. I just don't feel comfortable making important life decisions based on nuance and the mood that a government official might be in when analyzing my "individual situation" . I need clear, understandable, and defendable rules. Until then, I'm focusing on the 100K Italian flat tax scheme. Thanks for your answer.@@taxfinancialadviceinportug4745
How NHR 2.0 will work for Digital Nomads?
NHR 2.0 doesn't differ between different classes of occupation per se - if you meet the qualifying conditions, you're into the scheme
Hi, I make a living by trading financial products outside of the EU, mainly in the US, such as Options and Futures, so I can move to Portugal and pay 0% capital gains tax? I have a Spanish passport.
Thanks in advance.
Under NHR 2.0 foreign source income and gains are tax free but please seek personalised advice from an Accountant before taking any action
@taxfinancialadviceinportug4745
Do you know if the NHR 2.0 is also for 10 years? Will I get tax-free foreign income, and capital gains for 10 years if I move to Portugal?
Thanks in advance.
@@p.c.h.6721 Yes, it is for 10 years.
It's called milk the foreigner.
Isn’t it the opposite if Portugal is offering incentives for newcomers to the country (who will be mostly foreigners)……?
What about tax on crypto currency
As a general rule, no tax on crypto gains if held for more than 365 days
@@taxfinancialadviceinportug4745if traded weekly what’s the rate ? I thought Portugal hadn’t announced a tax rate for crypto yet
12:06 What's the best way to make money from crypto trading investment?