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…
Posts published in “Tax Tips”
With the Tax and Customs Authority (“AT”) asking taxpayers to remain at home by using digital channels, the process for IRS payments in instalments has been simplified. If you have an outstanding debt of up to €5,000 and do not owe other taxes, it is possible to divide the amount…
Question: I have only been able to let my local lodging unit during the high season. There is now a potential tenant who wishes to rent the apartment from October to May. Can I do this by concluding a contract for the period and then move forward with weekly or…
Tax planning is an essential part of preparing to move abroad. You will continue to have reporting obligations and possible tax liabilities in the States based on your US nationality, in addition to the new requirements founded on fiscal residency in Portugal. As always, the IRS applies harsh penalties for…
Portuguese resorts are considered to be the best in Europe among 26 residential tourism developments in 9 countries. According to 54 criteria in 10 categories, Portuguese holiday retreats ranked nº 1. There are many forms of tourism: recreation and leisure, healthcare, curative spa, cultural, educational, social. Dennis Swing Greeneinfo at…
The impact of the Covid19 pandemic on the Local Lodging Accommodation (“AL”) market is devastating. In May, average occupancy rates reached only 5% in Lisbon and 3% in Porto, worsening the already low levels observed in April when Lisbon registered an average occupancy rate of 10% and Porto 11%. Despite…
The list of non-cooperative jurisdictions for tax purposes is a tool to tackle: Tax fraud or evasion; Illegal non-payment or underpayment of obligations; Use of legal means to minimise tax liabilities and money laundering; Concealment of origins of illegally obtained money. The EU blacklists countries that…
Beneficiaries of retirement pensions from French sources (excluding public sector retirees) who settled in Portugal before 01 April 2020 may benefit from the Non-Habitual Resident scheme, an attractive tax-free regime for a period of 10 years. This favourable assessment results from a combined application of the double tax treaty concluded…
“In the employment support programs, there will be specific measures to combat youth unemployment and in particular that of qualified young people,” said PM António Costa, stressing that “young people are essential in the recovery of the economy”. According to the estimate of the National Statistics Institute, the youth unemployment…
The annual income limit for self-employed workers who are VAT exempt increases from €10,000 to €12,500. The uplift was approved by the General Assembly as part of the belatedly approved 2020 State Budget. Dennis Swing Greene info at madeira-weekly.com
The 2020 State Budget update allows independent workers on green receipts who fail to make their first two payments on account of the year in July and September due to breaks in their business activity. If they reactivate their regular business invoicing by the end of the year, they may…
Turismo de Portugal continues with online training actions for the Clean & Safe” Seal. This initiative is aimed at Tourist Enterprises, Local Lodging Accommodations, as well as Tourism and Travel Agencies that want to know the control measures for cleaning, hygiene and basic COVID-19 prevention. Registration is certified and free…
The Portuguese government is creating a specific programme of €4.5m to encourage “AL” holiday lets to be transformed to affordable rents for young people. The purpose of the programme is open more affordable housing for urban youth that is accessible and with better conditions. The government also proposes to make…
If you live in a foreign country or are travelling when tax payments become due, there are two ways to meet your tax obligations: 1) Direct Debit or 2) Bank Transfer. If you choose to use Direct Debit (Standing Order), you must first domicile the IBAN of the appropriate account…
After months of delay, Lisbon Council is to sublet 1000 flats currently available only under Local Lodging (“AL”). With a budget of €15 million to be spent over five years, the City expects to sublet one thousand apartments currently let short-term as Local Lodging to be made available at affordable…