Moving to a new country is quite an adventure, and the choice of destination is an essential part of any project. In Portugal, three regions attract the majority of expatriates who move there. The capital Lisbon, the southern region of the Algarve, and the region of Porto. Porto is Portugal's second largest city and has its own identity as well as a history rich in centuries of invincibility, hence its nickname of the Invicta city. Choosing the city to move to is just as, if not more, important than choosing the country, and anyone looking to move to Portugal will need to include Porto on their list when making their decision. To help and motivate you, I'm Lisbob, the expat assistant, and I'd like to share with you my 9 good reasons for moving to Porto.
If you're thinking of moving to Portugal, obtaining a Tax Identification Number (NIF) is an essential step. Essential for a multitude of daily activities, from paying for groceries to buying a house, the NIF is your key to successful integration in this magnificent country. Contrary to popular belief, obtaining an NIF is quick and easy, even for non-EU/EFTA citizens, with the possibility of acquiring it online for less than €100 and in less than a week. In this comprehensive guide, I explain everything you need to know about obtaining your Portuguese NIF in 2024, online or in person, without hassle or excessive costs.
Moving to a new country is quite a project, and the choice of destination is an essential part of any expatriation. The Algarve, Portugal's southernmost region, is a favorite among expats in search of sunshine and joie de vivre. Renowned for its beaches, culture, exceptional weather and people, the Algarve is a rich and varied region, and one that could well suit the future expat in you. Whether you're looking for a serene retirement or to become a digital nomad, the Algarve has nothing to envy other regions. To help and motivate you in your project, I'm Lisbob, the expat assistant, and I'm unveiling 9 good reasons to move to the Algarve in Portugal.
Obtaining your NIF, the Portuguese tax number, is the first and most important administrative step to take when you decide to move to Portugal. Essential for finding accommodation, working or opening a bank account, the NIF is your tax identification number, and it is advisable to apply for it before you arrive. There are many sites on the internet (including mine) where you can apply for your NIF remotely, each with their own prices, deadlines and special features, and it's not easy to find your way around. To help you make sense of it all and find the best site for applying for your NIF online, I'm Lisbob, the expat assistant, and I've come up with my top 5 best sites for applying for a Portuguese NIF online.
For several years the Portuguese capital has been regularly nominated among the best cities to go to live there, and it is justified. Indeed, Lisbon has exceptional assets and does not have to be ashamed of other European capitals, whether in terms of heritage, infrastructure or quality of life. Choosing which city to expatriate to is just as or more important than choosing the country, and if Portugal is your favorite destination then Lisbon will have to be on your list when making the decision. In order to motivate you and help you prepare for this project, I am Lisbob, the expats’ assistant, and I reveal to you the 9 good reasons to live in Lisbon.
In a spectacular reversal of migration policy worthy of an April Fool's joke, Portugal has announced that it has found a successor to the famous 'Golden Visa' programme, which was deemed too banal and insufficient. Instead, the new Portuguese government is unveiling with fanfare and fireworks (ecological, of course) its brand new programme: the Supreme Platinum Visa. I'm Lisbob, the expat assistant, and I'll tell you all about this new Portuguese programme.
In a sleight of hand worthy of a tax magician, Portugal's Socialist Party (PS) has launched what could be seen as a lifeline for future tax residents - but there's a catch! The regime for non-habitual residents (NHR), initially condemned to disappear in the State's draft budget for 2024, has been resurrected... but with conditions so strict that they deserve a standing ovation for their creativity. I'm Lisbob, the expat assistant, and I'll tell you all about the 'extension' of non-habitual resident status in Portugal.
The resident-non-habitual NHR status is a fiscal regime that was created in 2009 by the Portuguese Government. It is a tax system that grants a 20% tax rate or a total exemption on the taxation of income of expatriates who choose to live in Portugal, for a period of 10 years. And this is not just about retirees ! In order to get the famous tax scheme, it is necessary to prepare well. In total more than 23,000 people benefited from this tax regime. Of course, certain conditions must be met in order to benefit from the non-habitual resident NHR status in Portugal, and becoming a resident is one of them. The NHR scheme is granted to both active and retired people if they meet certain criteria. What is the NHR status ? How do you qualify for NHR in Portugal ? What are the conditions to qualify for NHR status in Portugal ? What are the tax benefits of non-habitual resident status ? How to get NHR status ? Lisbob, the expatriate assistant in Portugal, tells you all about the non-habitual resident NHR tax status in 2021.
Could this be the end of a long soap opera? In fact, the Portuguese Socialist Party has decided to go ahead with its ambition to reform the status of non-habitual resident, and this this year through the Portuguese state budget 2020. The bill indicates that future retirees benefiting from non-habitual resident status will no longer have the right to a total tax exemption and will have to pay a tax of 10% on foreign pensions. The idea of applying a minimum amount of 7,500 euros was not retained. This proposal is likely to be adopted this year as the forces inciting a modification or even a cancellation of the NHR statute are strong. Lisbob, the expatriate assistant in Portugal, tells you all about the changes in NHR status.
Socialist Party decided to end the Golden Visas in Lisbon and Porto, limiting the benefit of this status to the interior regions and the autonomous regions. This is a blow to this fiscal instrument which has brought a lot of foreign investment to the big urban centers but has also helped to raise the price of real estate. Rather than completely remove this controversial status, the government of Antonio Costa has decided to limit the allocation of these golden visas to people investing in CMIs and autonomous regions in order to limit the pressure on property prices in Lisbon and Port. This decision to end the Golden Visas on the whole of Portuguese territory is not only happy, but is less worse than expected. Lisbob, the expatriate assistant in Portugal, tells you all about the Portuguese Socialist Party’s decision to end the Golden Visas in Lisbon and Porto.
Portuguese real estate sector is currently turned against the government and against the bad signals it sends to foreign investors. This is the consequence of the possible modification of the rules for awarding golden visas and NHR status. These tax incentives are under the radar of many European countries which see them as unfair competition. Today, Luis Lima, the president of APEMIP, the Association of Professionals and Real Estate Companies of Portugal, sounds the alarm and indicates that the planned changes are driving investors away. Lisbob, the expatriate assistant to Portugal, tells you all about Luis Lima’s statement.
The Bloco de Esquerda (left-wing bloc) today presented two proposals, as part of the Portuguese state budget for 2020, to end the golden visas and eliminate the non-habitual resident regime. This is not the first time that the left party has put forward such a proposal with the aim of bringing more tax justice, but this year the bloco de esquerda intends to have its proposals adopted. Lisbob, the expatriate assistant in Portugal, tells you all about the Bloco de Esquerda's insistence on ending the RNH status as well as the golden visas.
Selling Portugal as a "fiscal Eldorado" or "Florida of Europe" will be more difficult. Foreign retirees who join the non-habitual resident regime (NHR) in the future should lose the tax exemption and double non-taxation and will have to pay a tax rate of 10% with a minimum tax of 7,500 € per year, according to sources close to the government. For several weeks, NHR status specialists have been agitating to find out whether the famous tax system will be abolished or modified for foreign retirees. The subject is advancing because today it is a clear proposal from the PS which will be debated as part of the 2020 State Budget. A tax rate of 10% with a minimum amount of € 7,500 in taxes to be paid per year : this is the PS's proposal for the 2020 State Budget. Lisbob, the expatriate assistant in Portugal, tells you all about the new NHR status.
Some will still say "fake news" but it is something that is approaching: the end of NHR status as we know it. Indeed, the Portuguese government has decided to go ahead and propose changes to the NHR tax regime which grants total tax exemption for 10 years to foreign retirees. It’s the Jornal de Negocios that headlines it today. They say the government is preparing a minimum tax rate on foreign pension income, but will not change the conditions for current beneficiaries. Lisbob, the expatriate assistant in Portugal, offers you the translation of this article from Jornal de Negocios.
Some beneficiaries of the NHR status might be anxious ! Indeed, the Portuguese tax administration carried out 264 inspections of beneficiaries of the regime of non-habitual residents (NHR), which led to tax adjustments and, consequently, an increase in the tax payable. Some beneficiaries played with fire by not fulfilling their part of the contract. In order to be able to continue to benefit from NHR status, you must reside in Portugal for at least 183 days (6 months) per year. Persons who have been unable to prove their residence in Portugal for at least 6 months have been notified of tax adjustments. Lisbob, the expatriate assistant in Portugal, tells you all about this wave of checks for beneficiaries of NHR status.
NHR (non-habitual resident) status may be spending its last days, at least in its current version. This tax status allows foreign retirees to be granted full exemption from taxation on private sector pension income. This sometimes leads to situations of double non-taxation, with pensioners not being taxed either in Portugal or by their country of origin, drawing some criticism. The Portuguese government, as part of the 2020 State Budget, has admitted studying the possibility of terminating the NHR status on January 1, 2020 and applying an IRS tax to foreign retirees who enjoy the status of non-habitual resident of 15% to 20%. The subject is even on the table of the Portuguese Council of Ministers and a final decision should arrive soon. What is the detail of this upcoming change to the NHR status? Is there really a chance that this proposal will pass for January 1, 2020? What impact for current beneficiaries of NHR status? Lisbob, the expatriate assistant in Portugal, tells you all about the end of NHR status.
The list of "high value added" professions that give access to NHR status in Portugal has changed. Occupations such as psychologists, architects, designers or archaeologists have left the list, and others such as directors of hotels and restaurants as well as dentists have been added. This is a real upheaval for the NHR status. In fact, the Portuguese tax authorities carried out a "thorough examination" of the list of professional activities recognized as "high value added" and which gave the right to the status of non-habitual residents. According to the order issued on Tuesday, "Portugal's economic situation has changed considerably since the publication of this table of activities, with a significant transformation of the dynamics of job creation". Non-usual residents in the occupations listed here are entitled to special rates on the IRS. What is the new list of professions recognized as "high value added" in Portugal? What about professions that come out of NHR status? Lisbob, the expatriate assistant in Portugal, tells you all about the new NHR status.
Swedish pensioners will have one less reason to come and retire in Portugal. Indeed, after long months of negotiations and contradictory statements by both parties, Sweden and Portugal have signed a new tax treaty that particularly affects beneficiaries of NHR status, non-habitual resident. Sweden will regain the right to tax the private pensions of Swedish pensioners living in Portugal, following the signing of a protocol to the tax treaty aimed at eliminating double taxation by both countries. This new agreement simply signifies the death sentence of the tax exemption enjoyed by Swedish retirees in Portugal. Lisbob, the expatriate assistant in Portugal, tells you all about the end of NHR status for Swedish retirees.
