What are the Portuguese Golden Visa tax implications?

Tax implications

Tax residency and legal residency are two different concepts and statuses. Becoming a Portugal Golden Visa holder does not necessarily grant you Portuguese tax residency statuses as these are not interdependent.

Once you become a legal resident, and if your investment in Portugal generates an income, you will be liable to pay taxes on that income.

If you then decide to become a tax resident in Portugal, you will need to spend more than 183 days out of a fiscal year in the country. Becoming a tax resident in Portugal has some appealing advantages, thanks to the Non-Habitual Resident (Residente Nao Habitual) tax program.

 

Non-Habitual Resident (NHR) Tax Program

Through the non-habitual resident tax regime, Portugal attracts professionals and investors of high cultural and economic value to the country. The program grants significant tax savings to foreigners of qualifying professions, planning to move their tax residence to Portugal.

The scheme started in 2009 and now holds over 10,000 applicants. In 2020, the program went through a few changes, mainly preventing foreign pensioners from tax breaks on their pension income.

Loumar works with well-regarded and established law and tax advisory professionals and firms, who specialise in the Portugal Golden Visa program.

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Who Is Eligible for a Golden Visa in Portugal?

Nationalities
Any non-EU/EEA/Swiss national can apply for the Portugal Golden Visa.

Pre-requisites
You are required to be at least 18 years of age and hold a clean criminal record from your home country, as well as from Portugal. The funds for the investment should arrive from outside of Portugal.

Family Members
Under Portuguese family reunifcation legislation, you may extend the Portugal Golden Visa to the rest of your family members. A comprehensive list of eligible dependents is listed in the previous section.

American Applicants to the Portugal Golden Visa
US citizens are eligible to apply for the Portuguese Golden Visa. Foreign-owned real estate has many advantages for United States tax residents, making the real estate investment option of the program especially interesting. American business owners may also choose to expand their businesses to Portugal, taking advantage of the Golden Visa program. This and others tax incentives in Portugal make it an attractive destination to relocate to.

UK Applicants to the Portugal Golden Visa

British citizens are eligible to apply for the Portuguese Golden Visa. In the face of Brexit, investors in the UK and around the world are re-evaluating their investment opportunities and access to the European Union markets, particularly in terms of their eligibility to openly travel into continental Europe. Since 2021, UK passport holders lost their right to work and reside as well as freedom of movement, in the Schengen Area as well. Many UK citizens consider immigrating to Portugal not only to enjoy a desirable and healthy lifestyle, as well as a pathway to attaining EU citizenship through investment.

As of January 1st, 2021, UK citizens became eligible to apply for Portugal’s Golden Visa program, thus providing them with the right to travel within the Schengen Area.