With a regime focused on investment and attracting new business, as well as incentives for new tax residents, it may be time to consider taking your taxes to Portugal.
While no one likes doing their taxes, the questions of ‘how’, ‘where ‘and ‘how much’ you’re going to be taxed is surely at the top of priority lists. Portugal’s Government has also given priority to its tax regime to make it an attractive and cost-effective place for potential investors and incoming workers, as well as companies doing business in or via Portugal. There are, of course, a whole host of different scenarios, conditions and exemptions to be looked at on a case-by-case basis.
The Tax and Customs Authority is responsible for the management of taxes in Portugal in accordance with the rates set out in the tax legislation approved by the Parliament. General tax rules apply nationwide, but the Azores and Madeira enjoy fiscal autonomy, so some tax rates differ from mainland Portugal.
To note that any income obtained abroad by Portuguese residents, or in Portugal by non-residents, is subject to tax, but to avoid double taxation the country is party to agreements with over 85 countries including the US, Poland, Russia, China, Canada and Germany.