Play on the sandy beaches… while we navigate through your tax returns.
Taxation Services
Portugal has one of the more generous tax systems in Europe and as such, Portugal has quickly become a popular destination for expats from the UK, the USA, and other countries. If you are classed as a tax resident, your worldwide income is subject to Portuguese income tax. On the other hand, if you are classified as a non-resident in Portugal, only income earned in Portugal will be liable for tax, typically at 20%. In an effort to attract leading talent and high net-worth individuals, the Portuguese tax system has a favourable tax system for non-habitual tax residents, known as the NHR tax scheme.
Our multidisciplinary team combines our international experience, local relationships, and proven expertise in the field of tax and accounting, to offer taxation advice for those wishing to relocate to Portugal.
We offer comprehensive taxation services within Portugal and the EU:
- Consultation and application for the Non-Habitual Resident Status (NHR), including advise on how foreign income will be taxed in Portugal and suggestions on optimization. This also includes an assessment on how much the individual will be saving in taxes by transferring his residency to Portugal.
- Consultation on incorporation and taxation of companies in Portugal, Spain, the UK and US, including provision of accounting services.
- Revising and submitting quarter VAT returns in Portugal and the UK.
Portuguese tax returns assessment, filling and submission for both individuals and companies, resident and non-resident. - Submission of annual personal and corporate tax returns, including for group companies and subsidiaries. This also includes monthly accounting services (via a chartered accountant). Set up of intra-group companies transfer pricing files.
- Tax advisory regarding a full exemption of taxation on investments in precious metals as well as a full exemption of income from crypto currencies mining and trading as well as derivate products.
- Inheritance tax advisory (including creation and liquidation of trusts) as well as suggestions on optimization.
We can also advise and assist with the following:
- NIF request.
- Company set up and bank accounts opening.
- Change of fiscal address to and from Portugal.
- Retroactive correction of fiscal address.
- Exchange of foreign driving licenses.
- Registration of individuals with the Portuguese NHS and social security for full coverage by the Portuguese government.
- Registration of individuals with the city council, including checking and filling all the necessary documentation.
- Administrative, hierarchical and judicial appeals from the refusal of granting the NHR, submission of tax residency certificates.
- Administrative, hierarchical and judicial appeals from the revenue services personal and corporate tax assessments.
The Inviting Non-Habitual Resident Tax Scheme
The resident-non-habitual (‘NHR’) scheme is a tax status that was created in 2009 by the Portuguese Government that allows individuals to benefit from a special tax status for a period of 10 years.
Obtaining NHR status from the Portuguese Tax Authority essentially depends on meeting two conditions:
1) The applicant:
A) Has stayed in Portugal for more than 183 days, whether consecutive or not, in any 12-month period beginning or ending in the year in question; or
B) Has stayed in Portugal for less time but, on any day of the period referred to above, has available to them a residence under conditions that make it possible to presume the intention to keep and occupy it as their habitual place of residence.
2) The applicant has not been tax resident in Portugal in any of the previous five years.
The granting of non-habitual tax resident status will allow the person receiving income earned in Portugal to benefit from the application of a reduced tax rate of 20%. To benefit from this rate, that income must come from one of the high added value activities approved by the Order of the Minister of Finance. This list of occupations changes every year.
The purpose of this new status is to attract foreigners with high value-added potential, such as retirees and skilled employees. Under certain conditions, the NHR status allows a tax rate on income of 20% or even a total tax exemption for pensions of private sector pensioners.