Before he resigned as prime minister amid a corruption scandal in November, Antonio Costa said Portugal’s non-habitual resident tax regime — which offers foreign residents a lucrative flat 20% tax on Portuguese-sourced income from “high value-added activities” as well as a flat 10% tax on pensions from foreign sources for a period of 10 years — would end this year.
Not so much.
According to Reuters, Costa’s Socialist Party “backtracked, suggesting it should stay open until the end of next year.”
The Portuguese parliament then approved the decision as part of the 2024 budget last week, Reuters writes.
Last year, the tax exemptions under the regime “cost the state budget more than 1.5 billion euros ($1.65 billion), an annual increase of 18.5%,” according to Reuters.
More here: Why has Portugal u-turned on tax breaks for foreign residents? | euronews
Related: Portugal approves 2024 budget bill ahead of snap election | Reuters
Previously: Is Portugal still worthwhile without the golden visa for real estate and non-habitual resident regime?
