Non-Habitual Residents Regime for Non-Habitual Residents The tax regime for non-habitual residents is intended to attract to Portugal certain qualified individuals and investments which may give rise to tax saving opportunities for expatriates. The Non-Habitual Residence special tax regime has the following exemptions and benefits: Professional Income from Portugal Income…
Posts published in “Tax Tips”
Non-Residents Non-Residents are taxable on income and gains arising in Portugal. When the paying entities are resident or assets located within or services performed in Portugal, then the following examples of income would need to be declared: Local rental income; Holiday lets (Local Lodging);Capital gains on sale of…
Residents Countries increasingly challenge former residents who attempt to move to another. Although the rules vary, most states define a “resident” as an individual who is in the state for other than a temporary or transitory purpose. Countries consider a person’s “residence” or home to be the place of his…
Whether for profit or pleasure, the truth is that there are many people who choose to be sole traders as a way to make a living. More than one out of five Portuguese workers are self-employed, a percentage that places Portugal within the highest level of entrepreneurs in the EU. For a person to operate as a sole trader, there are some preliminary requirements that must be met with Tax Authority and Social Security Administration before starting up a business operation.
When assessing Company profits, taxation occurs in a two-stage process: first, the Company pays Corporate Income Tax on its profits, then Shareholders pay Individual Income Tax on these distributed profits (now called dividends). This assessment procedure is called “economic” double taxation. Almost all countries in the EU have adopted one…
The Withdrawal Agreement provides for citizens rights upon the UK’s withdrawal from the EU. The following are some FAQ’s based on policy set by SEF (Serviço de Estrangeiros e Fronteiras). Conditions for Residence covered by the Withdrawal Agreement 1. I am a British citizen, living and working in Portugal. To…
The imposition of IMI and IMT for companies directly or indirectly based in so-called tax havens, approved in the State Budget, does not distinguish between the jurisdictions with which Portugal has double taxation (ADT) and information exchange (ATI) agreements from those in which complete opacity prevails in capital movements. Sovereign…
Expenses for masks, visors and disinfectant gel are now to be considered deductible health care expenses. If you buy individual protection equipment in an establishment that sells other products (such as supermarkets), you must ask for a separate invoice in order to deduct these expenses on your IRS return. In…
Self-employed workers in the Simplified Regime can use the exceptional programme that permits the payment of VAT in the first half of 2021 to be deferred in three- or six-monthly instalments. The decree that provides for this exceptional and temporary plan is one of the measures that aims to ensure…
Businesses in Portugal have prepared systems for non-resident UK nationals to participate in “tax free” purchases as of 01 January 2021. The plan allows for the recovery of VAT paid on eligible purchases when exiting Portugal. There is a minimum amount of €61.50 within an establishment to be entitled to…
The proposed 2021 state budget, fashioned with strong socialist leanings, has been delivered to the National Assembly for debate and approval before the end of 2020. After three months of negotiations between political parties on the Left, the document focuses on strengthening support for the unemployed, single-parent families, the self-employed…
If you are the owner of a Delaware Limited Liability Company (LLC), it is essential that you know what you have and what your responsibilities are. Requirements are in constant flux and need up-to-date procedures. If you have held your company for several years, current compliance obligations may be a…
Sole Trader Start-up Many foreign residents plan to open a small business when they move to Portugal. Regardless of your interest or motivation, it is essential to understand the basic requirements in Portugal before launching and conducting your new business activity. The following FAQ’s will help you get off to…
The request for a Residence Visa to exercise an independent professional activity or to become an immigrant investor (visa D2) is normally issued to the applicant in his country of residence through the Portuguese Embassy or Consulate. Once application has been made, the deadline for the decision is usually 60…
Under the final version of the 2020 State Budget, pensions will no longer enjoy full exemption from taxation in Portugal. Instead, pensions will be subject to a flat tax of 10%. A minimum levy of €7,500 had been proposed, but this measure was eliminated in the final version of the…