Retired Europeans are opting to move to Portugal to avoid paying higher taxes in their own country.
The Spanish are joining other Europeans
The Spanish over 65 years old group is joining the French, Germans, Swedish and Finns in retiring in Portugal and taking advantage of Portugal’s Non-Habitual Resident tax regime.
According to the Spanish newspaper ABC, the Finnish Government has already accused Portugal of implementing tax breaks which amount to “unfair competition” and now the European Union is reviewing its policy on member-states offering such tax regimes to citizens of other member states.
There have been a string of articles published in Spain, including in the newspaper ‘El Mundo’ which trumpets Portugal as one of the best countries to live after retirement.
The newspaper says the “people are hospitable,” the “cities are attractive,” it highlights Lisbon, Porto and Braga and mentions the “vast rural landscape,” “healthy diet” and “wild unspoilt coastlines”.
More and more British citizens are also keen to move
ABC states that interest from British citizens has also picked up over Brexit uncertainties with the Lisbon and Porto regions attracting most applications for the NHR regime as well as the Algarve and Madeira.
ABC states the moving to Portugal means saving thousands of euros in tax payments. The newspaper gives the example of a Spaniard with a €1.5 million income paying 48% taxes in Spain (€700,000) while in Portugal on the same income, that Spanish citizen would pay just 20% in taxes, around €300,000.
“There are some companies and associations with partners who have high purchasing power and very good pension funds who are transferring their residence to Portugal to take advantage of the tax breaks on the other side of the border” states the newspaper.
Official numbers released at the end of 2018 show that the number of foreigners who opted for settled status in Portugal increased 83% over the past year and a half, particularly the British, French and Italians.
Source: Essential Business
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