Retirees or pensioners who wish to establish their habitual residence for tax purposes in Portugal, will benefit from a tax exemption during a 10 year period.
No taxation for pension income obtained abroad
How can you become eligible for Non-Habitual Residents status?
If you have not been a resident in Portugal for the last 5 years:
Register at the local tax office as a tax resident in Portugal. To do so you must have stayed in Portugal for more than 183 consecutive or non-consecutive days, or, if you have stayed for less than the 183 days, on 31st December of that year, you must have a home with the objective to maintain and occupy this as your habitual residence.
Request the status of Non-Habitual Resident to be attributed at the time of registering as a tax resident in Portugal, or by 31st March of the following year in which you become a resident in Portugal.
Who is eligible?
Pensioners and Retirees, stop paying taxes in their country of origin because they now have tax residence in Portugal and will be fully exempt from tax in Portugal, due to the particular legal criteria for exemption, established by law.
In which cases is foreign income, obtained by Non-Habitual Residents in Portugal, exempt from taxation?
Income is taxed at source by the Government, in accordance with the Convention for the elimination of double taxation signed by Portugal with that Government.