In what some have described as being nothing more than an appeal-boosting publicity stunt designed to boost ongoing plans to become the Florida of Europe, the Portuguese parliament have applied changes to their tax laws that effectively remove an expats eligibility to pay any income tax.
Provided Expats are retired, in receipt of a work-related pension from abroad and recurrently reside in Portugal, they will go untaxed during their time spent sunning it up in the Algarve or any other favourite Portuguese hotspots.
This recent development is an alteration to a three year old piece of loosely defined and easily misinterpreted legislation that simply proved too contestable for the tax officers. Ultimately, its effect was negated by the tax man’s refusal to recognise or adhere to its terms.
Until now, Portugal has offered minimal incentive to international investors and many recognise the fact that the lateness of this long overdue alteration has potentially cost the Portuguese economy an unfathomable amount in overseas revenue such as that sourced from the expat market.
A large percentage of this inbound income was redirected to more beneficial countries that offered investors the chance to realise a worthwhile return. Now, anyone from a once dissuaded expat pensioner to an international property mogul can maximise profits and money performance.
Portugal has once again become a viable option for the future and thanks to the Portuguese treasury, some global investment is set to return to Portugal, whose financial infrastructure and overall levels of income will undoubtedly improve over the coming years.
Be sure to discuss your options surrounding Portuguese investment with a reputable and reliable financial advisor. You could learn just how beneficial it can be, to become entirely tax-exempt in your native country as well as in Portugal, one of the Eurozone’s most popular places for expats.
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