Examples of Portuguese beneficial tax regimes, include:
1. Since 2009 there has been a 20% flat rate for certain Portuguese source income (employment and self-employment income), and an exemption for almost all foreign source income, available to non habitual residents
2. A tax exemption for gifts or inheritances to spouse, descendants or ascendants. Inheritance or gifts to other individuals will be either not taxable, due to the generous territoriality rules, or subject to a flat 10% stamp tax rate.
3. No wealth tax and free remittance of funds either to Portugal or abroad. Nil taxation on dividends with proper planning or otherwise a 28% flat tax rate will apply. Tax credit for international double taxation may be available.
4. Beneficial tax treatment for pensions and other life insurance products (including unit linked) may further significantly reduce the effective tax burden on capital invested.
In 2009 Portugal introduced a beneficial voluntary Personal Income Tax (PIT) regime for non habitual residents
aiming to attract talent in high value added activities and Ultra and High Net Worth Individuals (UHNWI’s) and their families to Portugal. This regime aims to boost Portuguese competitiveness both in R&D and new technologies and other listed high value added sectors. UHNWI’s and their families may also benefit, as it is often more advantageous than other similar regimes. The new regime is available to all individuals becoming tax resident in
Portugal (if they were not Portuguese tax residents in the previous 5 years), and the status is granted for a period of
10 consecutive years. To be considered as a tax resident, the individual should remain for more than 183 days in Portugal during the relevant fiscal year or have a dwelling in Portugal at 31 December of that year with the intention to hold it as his or her habitual residence. Non habitual residents will be subject to a reduced 20% PIT rate both on salaries and business and professional income of a Portuguese source arising from high added value activities of a scientific, artistic or technical nature.