UK tax residents can take advantage of Portugal’s non-habitual resident scheme to receive their pension, and other qualifying income, tax-free.
About the Non-Habitual Residency scheme
By becoming a Portuguese tax resident under the Non-Habitual Residency scheme, your qualifying income will be tax-free both in Portugal and in the United Kingdom, subject to any withholding taxes applied in the UK. This attractive regime also covers professional income, from high value-added activities, which benefit from a special flat tax rate of 20%. The special status takes effect for 10 years, with all foreign-sourced pension income generally being tax-free, making it particularly attractive to those who are retired or who are looking to retire.Benefits of the NHR scheme
- No minimum investment required.
- Pensions, dividends, royalties and interest from non-Portuguese sourced income are exempt from personal income tax in Portugal, as are certain types of salaries that qualify.
- Favourable to succession tax regimes; spouses and children are exempt.
- Successful NHR applicants will have access to other benefits associated with tax residency in Portugal, including healthcare.