A sense of freedom, an opportunity to travel, a chance to improve one’s quality of life… As a new perspective on the future of work grows, the lifestyle of digital nomads is getting pretty popular.
Portugal in particular has been scoring high among the digital community. Just recently the country was elected the best place for remote work, in a ranking put together by one of the world’s leading travel search engines. And Madeira is also committed to attract digital nomads to the island through a unique experience of life and work.
But there is yet another reason why Portugal is so popular among digital nomads: favourable tax regimes, like the Non-Habitual Resident (NHR). Let’s take a look at some of its advantages?
1) 20% tax rate on income
Regular tax rates in Portugal or other European countries can go up to 48%. But the NHR allows for a decade long tax of 20% on income, instead of progressive rates. It’s thus a more favourable tax regime when compared internationally.
2) Tax exemption on foreign income
When moving to Portugal, you may benefit from a low tax burden on foreign income or even an exemption. This includes dividends, rentals, interest, or other real estate gains, as well as a wealth tax exemption.
3) Other tax exemptions
The NHR is beneficial for individuals with high assets, pensioners, and highly qualified workers. In addition to that, funds must be remitted to Portugal for free and inheritances or gifts to immediate family members are tax-exempt.
Need expert advice?
For someone who values their sense of freedom or the chance of choosing their own office and hours, tax regimes can be a world filled with rules and obligations.
The safest way to apply for the NHR status then is with the help of a professional team, relying on experts who understand the Portuguese law and the solutions you may need.
In other words, EaselyPortugal! Feel free to contact us for more information!