Thursday , March 28 2024
Home / le News / Portugal set to end tax holidays for foreign residents

Portugal set to end tax holidays for foreign residents

Summary:
Recently, the government of Portugal said it was looking at introducing a tax on foreigners residing in the country on special tax holidays, according to the magazine Bilan. © Tomas1111 | Dreamstime.comCurrently, foreigners moving to Portugal who spend at least 180 days a year in the country pay no income tax for a period of 10 years under a scheme that was launched 11 years ago. Not all income is tax free under the scheme. PWC, a tax consultancy, which describes Portugal as Europe’s best kept tax secret, explains what is and is not taxable under the scheme here. According to Portuguese media there are almost 30,000 residents benefiting from the arrangement, most of them retirees, many from Switzerland. Some in Portugal grumble about the upward pressure new arrivals have

Topics:
Investec considers the following as important: , , ,

This could be interesting, too:

Investec writes Some relief on Swiss electricity bills in pipeline

Investec writes Recent Swiss fire deaths prompt calls for fire detectors

Investec writes Swiss National Bank surprises with interest rate cut

Investec writes Over half of Swiss families struggling to make ends meet

Recently, the government of Portugal said it was looking at introducing a tax on foreigners residing in the country on special tax holidays, according to the magazine Bilan.

Portugal set to end tax holiday for foreign residents
© Tomas1111 | Dreamstime.com

Currently, foreigners moving to Portugal who spend at least 180 days a year in the country pay no income tax for a period of 10 years under a scheme that was launched 11 years ago.

Not all income is tax free under the scheme. PWC, a tax consultancy, which describes Portugal as Europe’s best kept tax secret, explains what is and is not taxable under the scheme here.

According to Portuguese media there are almost 30,000 residents benefiting from the arrangement, most of them retirees, many from Switzerland.

Some in Portugal grumble about the upward pressure new arrivals have exerted on property prices in Lisbon and Porto.

European governments, such as Sweden’s and Finland’s dislike the arrangement so much they have withdrawn from tax treaties with Portugal. In addition, there are rumours some in Brussels are unhappy with such tax competition within the EU bloc.

Portugal’s government is now looking at the possibility of taxing this group. The socialist party has proposed a tax of 10%. However, any changes are likely to take several years to materialise, according to local newspapers.

More on this:
Bilan article (in French) – Take a 5 minute French test now

For more stories like this on Switzerland follow us on Facebook and Twitter.

About Investec
Investec
Investec is a distinctive Specialist Bank and Asset Manager. We provide a diverse range of financial products and services to our niche client base.

Leave a Reply

Your email address will not be published. Required fields are marked *