Is Portugal's Tax Secret the Envy of Europe?
In an economy with negative interest rates, the Swedish Government agreed to pay a nominal ‘income’ on overpaid tax returned to individuals and businesses, resulting in a remarkable rush to overpay against tax demands: we live in interesting times!
A little closer to reality, Portugal’s Non-Habitual (Tax) Residency Regime has also been in the news in Finland, Sweden and latterly in the Netherlands. With the regime now being seen as somewhat unpatriotic (and clearly envied) by some countries, the rush is now on for foreign nationals to submit their applications in Portugal.
Whilst the disparaging remarks (about the regime) from some northern European Governments’ were respected by economists, it’s clear that people with limited savings, marginal pensionable incomes or entrepreneurs looking to expand their horizons are looking to Portugal for their next move.
In the last year, 10,000 NHR applications were processed; with applicants from France, Sweden and Southern Ireland all seeing volume increases year on year. In the first months of 2017, these trends have continued, with buyers from Francophone countries and Scandinavia making up almost two thirds of submissions.
It’s always tricky to predict how Governments will react to ‘expert’ sentiment. Arguably, with politics leaning further towards populism, countries with Elections this year may choose to take punitive action against other nations overtly attractive tax regimes; but this is unclear.
Whether action is taken or not, it’s apparent that Non Habitual Residency is the envy of many countries and there seems no stopping the flow of applications from across Europe. Portugal continues to welcome people of all nationalities and the diversity and income they bring to the Algarve is of great benefit.
Now is definitely the time to consult the experts and start to plan your tax efficient future in Portugal, start by having a conversation with one of our Partners today.
Robert and Ana