On the 10th. of August of this year (2006), the Governement finally approved the new law dealing with Residencias. The new Residency Law regulates the free circulation and residency of EU Citizens in Portugal. Transposing the EU Directive of 2004, this legislation changes basic assumptions and definitions while greatly simplifying the compliance process for EU citizens. The statutes define three phases and are in harmony with similar measures being adopted throughout the 25 member countries of the European Community and Switzerland.
What are the advantages of holding Residência?
Apart from the fact that you are secure in the knowledge that you have the correct documentation to reside here, there are other advantages that can prove important to you: · A home-owner, in certain circumstances, can apply for the exemption of property taxes (Imposto Municipal Imobiliário “IMI”) and he will be able to avoid or reduce paying Capital Gains Tax in case the property in Portugal is his permanent home and the proceeds are also invested in another dwelling for permanent living. A resident is entitled to vote in local elections. The Portuguese Health Authorities has a reciprocal arrangement with the British National Health which provides for medical treatment. Mortgages, bank loans and credit are more readily available. Children over the age of 10 can be educated within the state system. In most cases no importation duty on an E.U. motor vehicle when making application for residência. What are the disadvantages of being resident?