Tax

Insights into what is involved in buying, selling & living in Portugal

C.G.T. 2022

Guidelines: Capital Gains Tax (C.G.T.) 2022 These guidelines are intended only as a summary. Tax laws and regulations change frequently and sometimes unexpectedly. It is strongly recommended that you seek professional advice.

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Dividend in Portugal

DIVIDEND TAX IN PORTUGAL The dividend tax in Portugal applies both to residents and non-residents and it has a flat rate of 28%. However, a special participation exemption is applicable under certain criteria. Dividends paid to a Portuguese resident by a Portuguese company or an EU company are subject to a different taxation regime. A withholding tax on dividends is also applicable in Portugal; however, a special rate may apply if a double tax treaty exists between Portugal and the other jurisdiction. Our lawyers in Portugal can answer your questions concerning dividend taxation and other general questions about taxes for companies.

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AIMI Tax

As a relatively new tax, it is not surprising that many have been caught unaware of their liability to pay AIMI and, more importantly, how they can avoid the disturbing consequences.

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Owning Spanish Property in a company

International company structures established in decades gone by to help wealthy owners of property in Spain avoid tax are now a ticking time-bomb for some, as the Spanish tax authorities set their sights on them.

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Tax Example on Rental Income

Non-resident couple´s rental income(1) Monthly Rental Income(2) 1,500 6,000 12,000 Annual Rental Income 18,000 72,000 144,000 Less Expenses(3) (1,000) (3,000) (6,000) = Taxable Income 17,000 60,000 138,000 Income Tax(4) Flat Rate 28% 4,760 19,320 38,640 Annual Income Tax Due 4,760 19,320 38,640 Tax Due as % of Gross Income 26.44% 26.83% 26.83% DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on May 26, 2016.

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Inhertiance Tax in Portugal

At present inheritance tax between spouses or direct line (children, grandchildren, parents grandparents etc.) is exempt, i.e. zero. Other inheritors will pay 10% inheritance tax. The main laws regulating inheritance are the Portuguese Civil Code, fifth book (articles 2024 to 2334) and book one (articles 62 to 65).

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Non Habitual Residence (10 years exemption)

Non-habitual residents Portuguese special tax regime Introduction Portugal created a special personal income tax regime for new residents which offers attractive tax opportunities for foreign pensioners. This summary provides a brief overview and explains the main guidelines and potential implications of this regime for foreigners and Portuguese individuals settling in Portugal after an extended period of living abroad. It deals mainly with individuals receiving pension income. A separate brochure is available for employed and self-employed expatriates.

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