Portugal Taxation

Portugal's NHR Regime Cessation.

Portugal's Non Habitual Residency (NHR) tax regime came to an end at 31st December 2023. This special tax regime is no longer available, unless it can be proven that an individual began the residence application process in 2023. Under these circumstances, the closing date for NHR has been extended by a year.

By taking specialist advice to comprehend Portugal's tax regime and by using our services, you could legitimately reduce your tax liabilities. With our diligence, you will be surprised to find that your tax burden is considerably lower than expected at outset.

PFM's Tax Mitigation Structure

Our Tax Mitigation Structure is available to anyone who has the right to reside in Portugal. We can reduce ordinary tax rates to at least 5% on incomes if such income sources are structured in a certain way, and by using the Portuguese ordinary tax regime dictated by the PIT Code.

UK pensions

British nationals settling and retiring to Portugal can benefit from significant tax benefits on their pension income receipts despite the fact that NHR has ceased.

Residents can take advantage of Portugal's Category "H" regime, where it is possible to receive up to 85% of your pension income with no liability to tax. To take advantage of these beneficial tax advantages, one must explore the options available.

Compliant Investments

Our Portuguese Tax Compliant Account can ensure that you have a tax compliant investment structure to take advantage of certain tax benefits and reduce the exposure to the Capital Gains tax rate of 28% applying to investment interest and profits. Often, many expatriates believe that their investments will receive the same tax treatment in the country of origin, for example, UK ISAs being tax free in the UK. However in Portugal, such ISA accounts are taxable on the interest and profits gained in the tax year at 28%. We can offer an array the tax mitigation solutions.

Our Portuguese Tax Compliant Account is a tax mitigation scheme with the aim to legitimately reduce tax liabilities levied upon income, investment interest and dividends earned from invested capital..