Europe’s best kept secret

Why Portugal should be your top tax choice?

Portugal is part of the European Union, the Euro Zone and the Schengen area. With a stable political and social environment, a secure society, a highly skilled and English fluent labour force and an excellent quality of life, Portugal offers a favourable investment climate.

The country is investing in becoming a premium tourism and real estate location, as well as one of the leading EU countries for R&D and new technologies. 

It is not a surprise that Portugal is becoming a top choice for Ultra and High Net Worth Individuals who wish to take up residence in the European Union.

Portugal provides an excellent quality of life for the modern investor or businessman. The tax regime for individuals is very attractive, surpassing other regimes in many ways. The low effective tax burden, further enhanced by the regime for non habitual residents, the free remittance of funds, the friendly residence permit regime (allowing for free movement within the Schengen zone) and the possibility to apply for Portuguese nationality and, consequently, a EU passport, make Portugal a very attractive location. As a result of its traditional liberalism and multicultural approach, Portugal maintains very close links with the rest of the world, including Africa (Angola, Mozambique and Cape Verde), Asia (China, including Macao) and South America (Brazil).

The special tax regime for non habitual tax residents, with a flat income tax rate of 20% for certain Portuguese employment and self-employment source income further increases the attractiveness of Portugal and shows the Portuguese commitment to attract the best international talent, as well as wealthy individuals and their families.

The Portuguese tax system offers interesting opportunities in relation to wealth, gift and inheritance taxes as well as business and rental income, capital gains, dividends, interest and pensions. Wealthy individuals and their families, whether of Portuguese nationality or not, should look closely at what Portugal has to offer for the planning of their income and wealth, as well as for a successful transmission to the next generation.

  • Reduced or deferred taxation on dividends and other investment income, if not exempt under the non habitual resident regime.
  • The Autonomous Region of Madeira preferential but fully regulated tax regime (in line with EU law) is also available to all Portuguese residents.
  • No inheritance and gift tax and no wealth tax.

Contacte-nos

Leendert Verschoor

Partner, PwC Portugal

Tel: +351 213 599 671

Ana Duarte

Director, PwC Portugal

Tel: +351 213 599 671

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