The new Portuguese government intends to reintroduce tax preferences for foreigners moving to the country, reports Financial Times. However, only those who receive a salary or income from professional activities will be able to count on a reduced rate.The benefits will not apply to pensions, dividends and capital gains income.
The Non-Habitual Resident program, which grants new residents the right to pay tax at a reduced rate of 20%, has been in effect in Portugal since 2009 and was discontinued last year. The benefit attracted a large number of foreigners, which, in the end, according to many, led to an increase in prices for buying and renting housing.
Critics of the scheme also spoke about the injustice towards the citizens of the country who pay taxes on a progressive scale, and the rate for them reaches 48%.
Finance Minister Miranda Sarmento said that the newly introduced fiscal regime for immigrants will include the same 20 percent fixed income tax rate.
She also added that the government would not reconsider the decision of the previous administration to cancel "golden visas" for buyers of expensive real estate.
In order to qualify for tax benefits, foreigners must reside in the country for more than 183 days a year.
Digital nomads will probably be able to count on a reduced rate. Previously, the special tax regime was one of the factors behind the popularity of Portugal's Digital Nomad Visa.
