Beginning in January of 2020, a modified catalogue of business activities comes into force, benefiting a favourable tax regime aimed at attracting professionals with diverse skills to Portugal. These occupational profiles are now extended in light of the difficulties experienced by employers in various sectors in hiring workers since the inception of the Non-Habitual Residency Regime 10 years ago. Continue reading
The Finnish Government proposes that the bilateral tax treaty with Portugal, dating from 1970, should be terminated by the end of the year, waiting for a new agreement in 2019. At issue is the dissatisfaction with Portuguese Non-Habitual Residency regime which has led many Finnish pensioners to “flee” to Portugal seeking exemption from taxation. Finnish Finance Minister Petteri Orpo stated that “the tax treaty is not fair”. In 2016, Portugal and Finland agreed to update the treaty but, 18 months later, no changes have occurred.
If you exercise the “high value ” profession associated with your Non Habitual Resident application in Category B, the levy is customarily based on 75% of gross income, taxed at a flat rate of 20%. This leaves a final flat rate assessment of 15%, as compared to +40% as a typical higher rate taxpayer.
If your business activity is different from your NHR status, tax is commonly based on 35% of the gross income in the Simplified Regime, then assessed at marginal rates. This leads to a typical final assessment of 10-15%