Portugal: Tax Breaks & Sunshine

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Portugal’s allure extends far beyond its stunning landscapes and vibrant culture. In recent years, the country has emerged as a favourite destination for international citizens seeking a tax-advantageous and fulfilling lifestyle. This article explores the key tax benefits and lifestyle factors that make Portugal so attractive.

Portugal’s Tax Advantages
Favourable Inheritance and Gift Tax: Portugal boasts one of the lowest inheritance and gift tax rates in Europe with no taxes applying to spouses, children, and parents, and 10% applying in other scenarios. Further, if you are a national of another country, you may be able to opt Portugal to govern your succession as a whole. Read here for more information.
Capital Gains Exemption on Primary Residence: No capital gains tax applies when finland mobile database selling your primary or main residence in Portugal – provided you reinvest in a primary home within 36 months after the sale or 24 months before in another home in Portugal, within the European Union or European Economic Area that has a tax treaty with Portugal.
Non-Habitual Resident (NHR) Regime: Introduced to attract foreign talent and investment, Portugal’s NHR program offers significant tax benefits for a ten-year period. As of January 2024, the program has been revised. Currently, specific professions, like those in scientific research, qualify for reduced tax rates. The Portuguese Island of Madeira may extend the revised NHR program to a broader number of professions in the future, so staying informed about potential changes is recommended for those wishing to embark on an island lifestyle. Read here for more information.