The non-habitual residency scheme is a popular residency option for those wishing to live in Portugal. It allows international residents an opportunity to pay a lower, flat tax rate on their Portuguese income and no tax on foreign income, including pensions.
Portugal welcomes overseas residents and has an established reputation for doing so. Thousands of individuals have decided to make Portugal their home due to the Golden Visa and the Non-Habitual Resident tax scheme.
If you’re considering buying property in Portugal, one of your top concerns will undoubtedly be ‘can I afford it,’ and ‘what will it cost once I’m there?’
Since leaving the European Union, the UK is now considered a “third country”. As a result, it is now a legal requirement for all non-residents of Portugal who own property, hold a bank account or have a business there to appoint a tax representative. If you don’t, you could face fines of up to €7,500 – scary, right? But don’t panic – the deadline for finding a tax representative has been extended until 30 June 2022, thanks to Covid-19 disruption, so you still have plenty of time.
