What kind of taxes would I expect to pay in Portugal if I apply for its Golden Visa and live there, if any?

Answers

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  Diogo Capela

  Lamares, Capela & Associados, Sociedade de Advogados

  March 06, 2023

  That will depend on whether you relocate to Portugal or not. If you don't relocate to Portugal, you will not be considered a tax resident in Portugal, so you will not be obliged to pay taxes in Portugal, unless we are talking about some income generated in Portugal (e.g.: rents, dividends). If you relocate to Portugal, then you will be considered a tax resident in Portugal, you will need to fill out your tax returns in Portugal and depending on your tax status and the double taxation treaty signed between Portugal and the country where you are getting money from, you will need to pay, or not pay, taxes in Portugal.

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  Tiago Gali Macedo

  NEXT/Gali Macedo & Associados

  February 22, 2023

  Legal residency and tax residency are two different situations, as one is not dependent nor conditioned to the other. Should you become a tax resident in Portugal, you will be subject to taxation on all of your global income, whereas, as a non-resident, you will only be subject to taxation on any income that is created in Portugal. Also, should you become a tax resident in Portugal, you will be able to apply for and benefit from the NHR, a special tax regime which allows you to be taxed at a flat rate for some time.

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  Sara Sousa Rebolo

  Prime Legal

  February 14, 2023

  If you are considered a tax resident in Portugal you will be subject to the normal taxation rates - from 14% to 58%, although you can apply for the NHR. All your worldwide income will be taxed if you decide to change your tax residency to Portugal, otherwise only the income generated in Portugal is taxable. There are two ways of switching your tax residency - you either declare it yourself or if you spend more than 183 days out of a year in Portugal.

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  Raquel de Matos Esteves

  RME Legal, Soc. de Advogados, SP, RL

  February 14, 2023

  The Golden Visa does not grant any special tax regime. Under the Golden Visa, the applicant can choose to spend short periods of time in Portugal and be a permanent resident elsewhere in which case he/she is deemed a non-resident for tax purposes in the country. In this scenario, he/she is only liable to taxes on Portuguese sourced income (for instance, rental income from a Portuguese property). When the Golden Visa applicant lives in Portugal, he/she should register as a resident for tax purposes and apply for the NHR tax regime. Tax residents in Portugal must declare their worldwide income. The specific tax rate applicable depends on the type of income, country of source and tax special regimes (NHR). You should seek tax advice on your specific case. Please note that the fact that income is being received in Portuguese or foreign bank accounts is not relevant for tax purposes. Foreign income or Portuguese sourced income are taxable in Portugal irrespective of the bank account used, if you are a tax resident in Portugal.