Under the final version of the 2020 State Budget, pensions will no longer enjoy full exemption from taxation in Portugal. Instead, pensions will be subject to a flat tax of 10%. A minimum levy of €7,500 had been proposed, but this measure was eliminated in the final version of the Budget.
With the Tax and Customs Authority (“AT”) asking taxpayers to remain at home by using digital channels, the process for IRS payments in instalments has been simplified. If you have an outstanding debt of up to €5,000 and do not owe other taxes, it is possible to divide the amount to be paid in a maximum of 12 instalments. However, when the amount owed is above €5,000 or more than 12 instalments are required, the tax authorities still ask for a guarantee.
During this month of August, at least half of the number of flights registered at Lisbon Airport has resumed according to the data from ANA – Airports. Air traffic has begun to show signs of recovery after the 93.8% drop in the second quarter as compared to the same period in 2019. Due to the pandemic and consequent movement restrictions, the number of passengers fell by 97%. Airports expect to only recover their usual volume of passengers by 2024.
Question: I have only been able to let my local lodging unit during the high season. There is now a potential tenant who wishes to rent the apartment from October to May. Can I do this by concluding a contract for the period and then move forward with weekly or biweekly lets in the summer season?
Yes, such a hybrid solution is possible. You will need a rental contract, defining the duration of the agreement as well as delimit any other conditions. In essence, this arrangement is compatible with your proposed summer “AL” activity. However, you will not be able to deduct expenses as you would with a conventional long-term lease.
Portuguese resorts are considered to be the best in Europe among 26 residential tourism developments in 9 countries. According to 54 criteria in 10 categories, Portuguese holiday retreats ranked nº 1. There are many forms of tourism: recreation and leisure, healthcare, curative spa, cultural, educational, social.
The list of non-cooperative jurisdictions for tax purposes is a tool to tackle:
- Tax fraud or evasion;
- Illegal non-payment or underpayment of obligations;
- Use of legal means to minimise tax liabilities and money laundering;
- Concealment of origins of illegally obtained money.
The EU blacklists countries that encourage abusive tax practices that erode member states’ corporate tax revenues. Member states can act together to press for reform. The aim is not to “name and shame” countries but rather to encourage positive change in fiscal legislation and practices through cooperation. Once a jurisdiction is compliant, it can be removed from the European Union’s blacklist.
The impact of the Covid19 pandemic on the Local Lodging Accommodation (“AL”) market is devastating. In May, average occupancy rates reached only 5% in Lisbon and 3% in Porto, worsening the already low levels observed in April when Lisbon registered an average occupancy rate of 10% and Porto 11%. Despite the dramatic drop in demand, average monthly rates remained at usual levels, reaching €93 in Lisbon and €70 in Porto.
In 2019, more than 180,000 foreigners obtained Portuguese nationality, more than double the number of babies born in Portugal (81,351) over the same period. The number is a record high and reflects the growing impact of the current immigration legislation that has increasingly opened the country’s doors to migrants. The majority of applicants come from Brazil, Cape Verde and Israel. On average, there are almost 15,000 foreigners per month who are approved for Portuguese nationality.
In 2020, Portugal ranks first among the most peaceful countries in the European Union as reported by the Institute for Economics and Peace. The worldwide classification is led by Iceland, which holds the top spot since 2008, followed by New Zealand. The Ministry of the Interior expressed its satisfaction with the maintenance of Portugal’s third place. In 2014, the country ranked 18th. At the opposite end of the spectrum are the regions of the Middle East and North Africa, home to three of the five least secure nations (Iraq, Syria and Yemen). Afghanistan continues to be the most dangerous.
“In the employment support programs, there will be specific measures to combat youth unemployment and in particular that of qualified young people,” said PM António Costa, stressing that “young people are essential in the recovery of the economy”. According to the estimate of the National Statistics Institute, the youth unemployment rate was above 20% in April, being the age group most affected by the pandemic crisis.