Portugal welcomes wealthy expats with tax perks

Portugal has relaxed tax rules for wealthy expats heading for their place in the sun

The government has offered a special tax deal for expats in the hope of attracting extra incoming investment.

Under the invitation, the welcome mat was out for expats to become residents if they could show they were high net worth individuals or high value added employees or self-employed individuals providing they had not lived in the country for five years before the application.

In return, expats were offered a 10-year package with flat-rate income tax set at 20% on local income plus an exemption on foreign income while meeting tax treaty conditions.

Part of the application involved the Portuguese inland revenue requiring certification from a foreign tax authority confirming the expat was resident abroad, and any overseas income was taxed before moving to Portugal and while living in Portugal.