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NHR status : Portuguese government decides to tax retirees at 10% IRS and abandons the minimum amount of 7,500 euros

NHR status : Portuguese government decides to tax retirees at 10% IRS and abandons the minimum amount of 7,500 euros

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.

Bloco de Esquerda insists on the end of NHR status and golden visas

Bloco de Esquerda insists on the end of NHR status and golden visas

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.

New NHR status for retirees : 10% tax and 7,500 euros minimum per year

 New NHR status for retirees : 10% tax and 7,500 euros minimum per year

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.

End of tax exemption for foreign pensioners in Portugal : Portuguese government will change the NHR status

End of tax exemption for foreign pensioners in Portugal : Portuguese government will change the 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.

Portuguese tax authorities control 264 “fake” non-habitual residents with huge tax adjustments

Portuguese tax authorities control 264 “fake” non-habitual residents with huge tax adjustments

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.

End of NHR status on January 1st, 2020 for foreign retirees : Portuguese government admits having to take a decision quickly

End of NHR status on January 1st, 2020 for foreign retirees : Portuguese government admits having to take a decision quickly

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.

End of NHR status for Swedish pensioners in Portugal

End of NHR status for Swedish pensioners in Portugal

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.