I can just imagine one of those signs that points at you no matter where you are in the room, although they would have to use today’s technology as this sign would need to point right at your wallet. Portugal wants your money, or rather it wants the money of wealthy expats. In a bid to entice more of them to put their money into Portugal, it has relaxed its expat tax rules.
Three years ago, a special tax rate for non-residents of 20 per cent on income generated in the country was introduced by the government. Foreigners’ income was also exempt from Portuguese taxation, though expats could still be liable for tax in their home country.
Making no bones of its intentions even then, Portugal limited the new “perks” to high net worth individuals (HNWIs) or “high value-added” and to have been Portuguese residents for less than 5 years.
They also had to prove that they had lived and paid tax in their home country before moving to Portugal and during their time living in Portugal, with documents from their own tax authority. But now, this hoop-jumpery is no longer neccesary in order to qualify for the tax breaks, expats simply need to sign a declaration saying that they were previously resident in another country. This now opens the possibility of moving to Portugal for those who may have moved around the world, or who may not be on the best of terms with their own tax authority.