Portugal has established itself as an attractive destination for foreign investors and citizens seeking residency, thanks to a range of tax advantages, investment programs and opportunities in the real estate market. In this article, we will address the main aspects related to taxation, investment, Golden Visa and the real estate market in Portugal, highlighting the opportunities and benefits that the country offers.
1. Favourable Taxation
Portugal offers an attractive tax regime, especially for non-habitual residents (NHR). This regime allows a flat IRS rate of 20% on income from certain activities, such as high value-added professions, and tax exemption on income earned abroad for a period of 10 years. This measure aims to attract qualified professionals and investors, providing a reduced tax burden.
In addition, Portugal has double taxation agreements with several countries, which avoids double taxation of income. For foreign retirees, the country also offers the possibility of total or partial exemption from IRS on pensions received from abroad.
2. Investment Opportunities
Portugal has been a preferred destination for investments, especially in the areas of technology, tourism and renewable energy. Political and economic stability, combined with tax incentives and a qualified workforce, make the country a favorable environment for business development.
The Tax Regime for Investment Support (RFAI) and the Tax Incentive System for Business Research and Development (SIFIDE) are some of the mechanisms that encourage investment, offering tax benefits to companies that invest in innovation, technology and regional development.
3. Golden Visa: A Gateway to Europe
The Golden Visa program has been one of the main ways of attracting foreign investment to Portugal. This program offers a residence permit to citizens from outside the European Union who make significant investments in the country, such as the acquisition of real estate worth 500,000 euros or more, or the transfer of capital of at least 1 million euros.
This regime allows not only residence in Portugal, but also free movement within the Schengen area, and is one of the most popular programs among international investors, due to its simplicity and associated benefits.
4. Real Estate Market: Growth and Opportunities
The Portuguese real estate market has seen robust growth, especially in cities such as Lisbon, Porto and the Algarve. The combination of relatively affordable prices, when compared to other European capitals, and the high quality of life has attracted both investors and foreigners looking for residence.
In addition to investors seeking financial returns through rentals, many foreigners have purchased property as their main or secondary residence, taking advantage of the country’s mild climate and safety.
Conclusion
Portugal offers an attractive package for foreign investors and residents, combining tax benefits, a favorable business environment, and a dynamic real estate market with the Golden Visa playing a crucial role in attracting foreign investment. With these conditions, Portugal continues to establish itself as an excellent destination to live, work and invest in Europe.
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