Summary:
Portugal has reintroduced its nonhabitual resident (NHR) tax regime, offering attractive tax benefits to highly skilled foreigners, including Americans.
The new NHR regime features a flat income tax rate of 20%, but only applies to salaries and professional income, excluding dividends, capital gains, and pensions.
The changes aim to attract young, skilled professionals and address Portugal's housing crisis, while stimulating economic growth.
Big Portuguese companies are expected to benefit from the new measure, as it addresses the shortage of skilled professionals.
Portugal offers a high quality of life, a safe and friendly environment, great weather, beautiful scenery, rich culture, and a relatively low cost of living compared to the US.
Cities like Lisbon and Porto are lively and exciting, while the Algarve boasts amazing beaches, and the Douro Valley provides a tranquil escape.
Portugal's Tax Breaks Are Back: Americans Can Benefit Again
Portugal has reintroduced its nonhabitual resident (NHR) tax regime, offering attractive tax benefits to highly skilled foreigners, including Americans. This updated scheme aims to attract skilled professionals and boost Portugal's economy.
What's New?
The new NHR regime differs significantly from its predecessor. While the flat income tax rate of 20% remains, it now only applies to salaries and professional income. Dividends, capital gains, and pensions are excluded, addressing concerns from Nordic countries about retirees exploiting tax breaks.
Why the Changes?
The previous NHR scheme, criticized for raising housing prices, has been replaced with a focus on attracting young, skilled professionals rather than retirees. The government aims to address the housing crisis and stimulate economic growth.
Who Benefits?
Big Portuguese companies are likely to welcome the new measure, as it can help address the shortage of skilled professionals. The 20% flat rate could make Portugal a more attractive destination for engineers, researchers, and managers.
Why Move to Portugal?
Portugal offers a high quality of life, a safe and friendly environment, great weather, beautiful scenery, and rich culture. Cities like Lisbon and Porto are lively and exciting, while the Algarve boasts amazing beaches, and the Douro Valley provides a tranquil escape.
The cost of living in Portugal is relatively low compared to the US, making it an attractive option for those seeking a more comfortable lifestyle.
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