Portugal’s Golden Visa tax benefits has been gaining popularity among investors looking for a second residency or citizenship in the EU. One of the most significant advantages of this program is the tax benefits it provides.
Through the Non-Habitual Resident (NHR) regime, investors can enjoy a tax exemption for almost all foreign source income and a 20% flat rate of income tax on qualifying employment and self-employment income.
In this blog post, we will explore in detail the Portugal’s Golden Visa Tax Benefits and how it can be a tax-efficient option for those seeking a second residency or citizenship in the EU.
Portugal's Golden Visa Tax Benefits
Portugal’s Golden Visa program has been a popular option for those seeking a second residency or citizenship in the EU.
The program offers a range of benefits, including visa-free travel, access to healthcare and education, and the ability to work and live in Portugal.
However, one of the most significant advantages of the Golden Visa program is the tax benefits it provides.
One of the ways in which the Golden Visa program can benefit applicants is through the Non-Habitual Resident (NHR) regime. The NHR regime provides a tax exemption for almost all foreign source income, and a 20% flat rate of income tax on qualifying employment and self-employment income.
This regime can be particularly advantageous for retirees, freelancers, and entrepreneurs who have a significant amount of foreign source income.
With the correct planning and structuring, you can legitimately create a tax-favourable position and in some cases, single-digit rates of tax, which means that Portugal can still be more favourable than most individual’s home countries.
This is especially true when compared to other EU countries such as Spain. In Portugal, the tax rate on income is 28 percent. Spain, however, has a different program in its tax regime. Earnings up to a maximum of 60,000 euros are subject to a 24% general tax rate; however, this rate rises to 45% once this amount has been reached.
Therefore, for individuals with a higher income, Portugal’s tax regime could offer a more favorable option.
Another advantage of the Golden Visa program is the absence of inheritance and gift taxes for non-habitual residents. This can be particularly advantageous for those who plan to leave a significant inheritance for their children or grandchildren.
In addition to the tax benefits, the Golden Visa program also provides a pathway to citizenship. After five years of residency, investors can apply for citizenship, which would provide them with all the rights and benefits of an EU citizen, including the ability to live and work anywhere in the EU.
In conclusion, Portugal’s Golden Visa program provides a range of benefits, including visa-free travel, access to healthcare and education, and the ability to work and live in Portugal. However, one of the most significant advantages of the program is the tax benefits it provides, particularly through the NHR regime.
With a tax exemption for almost all foreign source income and a 20% flat rate of income tax on qualifying employment and self-employment income, Portugal can be a tax-efficient option for those seeking a second residency or citizenship in the EU.
If you are interested in exploring the benefits of the Portugal Golden Visa, you can visit the following links for more information: