Tax advice

Here are the main tax benefits of living in Portugal, particularly under the RNH 2.0 regime (Residente Não Habitual also known as NHR: Non Habitual Resident) and other general tax regimes, based on the most recent information:

RNH 2.0 tax benefits

• Exemption on foreign income
  Foreign income, such as dividends, capital gains, and royalties, are exempt from tax.
• Flat rate of 20% on income from Portugal
  Income from specific professions (such as IT specialists, managers, doctors, natural science specialists, engineers, industrial designers, university teachers, and more) is taxed at a flat rate of 20%, instead of the standard Portuguese income tax rates which, like in the UK, can be as high as almost 50%.

You must be employed in higher education, scientific research, certified start-ups, or companies that export at least 50% of their products to qualify.

A very interesting option is to invest in a certified startup, which makes you a board member of that startup and therefore also entitled to the RNH scheme.

It is also very interesting for people from one of the above professional groups to work for a certified startup here because the income tax is also only 20% for 10 years and the cost of living is also much lower than in the UK.

Duration of benefits: The RNH regime offers these benefits for a period of 10 years, provided that you remain a fiscal resident of Portugal and continue to do the activities for which the RNH was granted.

General tax benefits outside the NHR

• No inheritance tax 
  There is no inheritance tax for direct family members (such as spouses or children). For others, a stamp duty of 10% applies, which is often lower than in other countries.

I work with several tax specialists and lawyers who are very familiar with the latest developments in this area. If you want to know more about a specific situation, let me know!

Interesting links

Dividend tax rates in Europe
Capital gains tax rates in Europe