Portugal: why are more and more retirees opting for NHR status ?

In recent years, Portugal has become a destination of choice for many foreign retirees, thanks in particular to its advantageous tax status for non-habitual residents (NHR). This status, created in 2009, offers a series of tax benefits that have attracted a growing wave of retirees in search of the good life and tax optimisation.

NHR status: an attractive tax advantage

Non-habitual resident (NHR) status is designed to attract qualified foreign professionals and retirees. You can Continue reading here to find out more about this type of status.  The main tax advantages offered by this status include: exemption from foreign income tax, a fixed rate of tax on income from Portuguese sources and the absence of double taxation.

En parallèle : Choosing the right cigar humidor & cigar accessories

Exemption from foreign income tax 

Pensioners with NHR status can receive their foreign retirement pensions tax-free in Portugal for a period of ten years. This exemption is particularly attractive for pensioners from countries with less favourable tax regimes.

Fixed tax rate on income from Portuguese sources and no double taxation

For income from Portuguese sources, beneficiaries of NHR status are subject to a flat rate of 20%. This is often more advantageous than standard progressive rates. Thanks to bilateral tax treaties between Portugal and many other countries, retirees can avoid double taxation on their income.

Dans le meme genre : What’s the Role of Smart Grids in the UK’s Energy Transition?

Portugal: an ideal place to live

In addition to its tax advantages, Portugal is also attractive for its quality of life. Here are just a few of the reasons why retirees flock to this country: a pleasant climate, an affordable cost of living, a high-quality healthcare system, etc.

Pleasant climate and affordable cost of living

Portugal enjoys a mild Mediterranean climate, with mild winters and sunny summers, which is particularly popular with the elderly. Compared with other popular European destinations, Portugal offers a relatively low cost of living. This allows retirees to live comfortably without sacrificing their quality of life.

A high-quality healthcare system 

The Portuguese healthcare system is renowned for its quality and accessibility. Retirees can benefit from excellent medical care at costs well below those in many other European countries.

In short, Portugal's NHR status offers a unique combination of tax advantages and quality of life, making the country particularly attractive to retirees. For those looking to maximise their pension while enjoying an exceptional lifestyle, Portugal, with its NHR status, represents a very attractive option.