Should I move to Portugal to avoid Tax?

Movingto Editorial Team
November 26, 2021

Are you contemplating relocating to Portugal for tax advantages? You're not alone. Portugal's attractive tax benefits have attracted numerous expats over the years. This detailed guide provides insights into why Portugal can be a tax haven for expats and the steps to making this move.

Understanding Tax Benefits: Why Move to Portugal?

Portugal's Non-Habitual Resident (NHR) tax regime offers attractive benefits for both EU and non-EU citizens. Understand why moving to Portugal can be financially advantageous in this section. Moving to Portugal can be a great way to optimise your taxes because of initiatives like their crypto tax friendly policies.

NHR Tax Regime: What is it?

A deep dive into Portugal's non-habitual resident tax regime. Here, we'll explore the benefits it offers, the eligibility criteria, and how you can apply for it.

Steps to Move to Portugal and Apply for NHR

This section outlines the step-by-step process to move to Portugal and how to apply for the NHR tax status. Relocating to Portugal involves several steps, including obtaining the necessary legal documentation, finding accommodation, and adjusting to a new culture and language.

1. Obtain a Residence Visa

The first step to moving to Portugal is to apply for a residence visa. You can do this at the Portuguese embassy or consulate in the USA. Luckily for you at Movingto, we compare all the visa types and prices for you, so you can get the right visa

2. Apply for a Residence Permit

Once in Portugal, you'll need to apply for a residence permit. This can be done online through the Portuguese Immigration and Borders Service website.

3. Secure Accommodation

Finding a home in Portugal can be challenging, especially in popular cities like Lisbon and Porto. We recommend starting your search online and considering hiring a local real estate agent to help you find the perfect place.

4. Choosing the Right Health Insurance

The health insurance that you choose for your Portugal visa must be extensive and recognized throughout the European Union. Always verify the details with your insurer before applying for your visa to avoid any discrepancies. Speak with one of our health insurance brokers today for free to get different quotes.

Financial Planning: A Key to Successful Relocation

Moving to another country requires comprehensive financial planning. This section provides some practical tips and considerations to keep in mind when planning your move to Portugal.

Depending on where you currently live and whether you’re eligible for NHR, Portugal could offer a significantly better tax policy for you. For example, if you qualify as a high-value worker in Portugal, your income tax could be capped at 20% and all dividends earned from international companies with a double-taxation agreement is completely tax-free. There are a number of other significant tax advantages that are worth learning more about with the NHR.

In addition to this, crypto is tax-free, so long as it’s not your main source of income and you’re not deemed a trader. 

Pensions are taxed at 10%, which is significantly lower than in most countries.

Seek Expert Advice: Tax Consultants and Movingto Assistance

Navigating tax laws and immigration processes can be complex. Enlisting professional help can simplify the process. Get in touch with our expert team at Movingto to get personalized assistance for a smooth relocation.

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