LIVING IN PORTUGAL,
AN ATTRACTIVE EUROPEAN COUNTRY


Planning to move to Portugal? IGMASA Management, your partner for hassle-free relocation. We take care of the administrative formalities; including the Non Habitual Residence regime and Golden Visa applications, so that you enjoy your stay in Portugal.


Taxation

Non Habitual Residence Regime

The objective of this special tax regime is to attract professional experts who perform high-value-added, or intellectual/industrial property, or know-how activities; as well as retirees who receive foreign pensions. These individuals may enjoy the NHR regime’s tax benefits for 10 years, after which they will be taxed at standard Portuguese tax rates. The NHR regime applicable tax rates are:

  • Exemption of foreign-source income when the income is taxable in the source state under a tax treaty.

  • Taxation at a 20% flat rate for Portuguese source income, instead of taxation at progressive rates.


The NHR regime is available to individuals who have not been tax residents in Portugal for the previous five years; and become Portuguese tax residents before requesting the NHR regime. Individuals must spend at least 183 days per year in Portugal in order to be consired as a tax resident in Portugal.

Golden Visa – Residence Permit for Investors

Portugal also has a temporary residence program, that does not require a previous resident permit, for non-European Union citizens who invest, personally or through a company, in real estate, artistic or scientific projects, urban property rehabilitation, or by creating job positions within the Portuguese territory for a five-year period.

The Golden Visa enables investors and their family to live in Portugal and travel freely within the 26 countries of the Schengen zone with their Portuguese-resident id.

After keeping the Golden Visa for six years, investors are eligible for the Portuguese citizenship.

Download the prerequisites to obtain the Portuguese Golden Visa

Real Estate Taxation

Buyers of real estate property in Portugal must pay the Transfers Municipal Tax (IMT for its Portuguese initials).

The basis for the IMT calculation is the real estate purchase price or its taxable value (whichever is higher) and varies depending on whether the property is the main residence or second home. The applicable IMT rates for each scenario are explained below:

  • Acquisition of urban real estate or an autonomous fraction of urban property, exclusively for the owners’ permanent housing


  • Amount for applying IMT (en euros) Tax rate
    Marginal Average(*)
    Up to 92.407 € 0% 0%
    From 92.408 € to 126.403 € 2% 0,5379%
    From 126.404 € to 172.348 € 5% 1,7274%
    From 172.349 € to 287.213 € 7% 3,8361%
    From 287.214 € to 550.836 € 8% -
    Above 550.836 € 6% (single rate)

    (*) at the bracket’s higher end

  • Acquisition of urban real estate or an autonomous fraction of urban property, exclusively for housing.


  • Amount for applying IMT (en euros) Tax rate
    Marginal Average(*)
    Up to 92.407 € 0% 0%
    From 92.408 € to 126.403 € 2% 1,2689%
    From 126.404 € to 172.348 € 5% 2,2636%
    From 172.349 € to 287.213 € 7% 4,1578%
    From 287.214 € to 550.836 € 8% -
    Above 550.836 € 6% (single rate)

    (*) at the bracket’s higher end

  • Acquisition of land: 5%.

  • Acquisition of other urban buildings and other costly acquisitions: 6,5%.


Portuguese law foresees a few cases for IMT exemption; such as, the acquisition of urban real estate properties in urban renewal areas when the buyer starts refurbishing works within the first two years from the purchasing date.

Additionally, ownership of real estate property in Portugal is subject to real estate taxes. Real estate property owners pay this tax annualy on December 31; the basis for its computation is the tax assets value determined by the Portuguese Finance Ministry.

Property tax varies depending upon the type of property.

  • Rural property: 0,8%.

  • Urban property: from 0,3% to 0,5%.


These tax rates may increase for ruins, empty or abandonned buildings, property located in urban rehab zones, and buildings belonging to entities located in tax heaven jurisdictions. These tax rates may also decrease when the real estate property is located in an urban rehab zone and in a dessert-rescue zone, or if the property is listed as public interest, cultural heritage, or buildings rented in urban zones.

Real Estate in Portugal

Why invest in Portuguese real estate?

Currently, the Portuguese real estate market presents several opportunities. In fact, there is a wide range supply to match any kind of needs; such as, partial relocation to Portugal, having a vacations property or simply for speculation.

Depending on the regions, prices fell between 10% and 15% between 2008 and 2012. Besides, the assets devaluation risk is low since Portugal has not suffered a real estate bubble.

Since the 2008 crisis, several foreign investors have come to Portugal, especially due to the Golden Visa program. This has triggered real estate prices, but still within an insteresting level.

Taxation wise, the Portuguese government has implemented incentives to make the real estate market more attractive.

We suggest our clients buying real estate in Portugal to contract the services of qualified professionals to verify that their real estate transaction is done properly.

Relocation Services


Planning the departure and where to relocate in Portugal

Support for preparing your expatriation. Organization of your departure. Assistance for your relocation and search of properties to buy or rent. Real estate property pre-selection based on client-established criteria, accompanied property visits, visits schedule.


Relocation – Live in Portugal

We take care of all the administrative formalities for your hassle-free relocation to Portugal.

Besides assisting with applications to obtain the NHR regimen and the Golden Visa temporary resident permit, we facilitate your relocation by offering administrative and accounting services, in addition to all the fiduciary services required to for your relocation to Portugal (for investors, working expats, and retirees).

We may also assist you with the preparation of your annual income tax returns, social security registration, and general supporting services, such as: contracting utility services and insurance policies, finding the right school for your children, assistance for opening bank accounts, vehicle registration and driving permit.


Help Desk

Solutions through a simple phone call. Assistance to everyday inquiries (job search, personnel). Property management. Assistance with mobile phone companies. Translations, secretarial services, telephone support, and any other service upon request.

Fees

After analyzing the client’s expatriation/relocation project, we prepare a budget according to the services the client requests, on a case by case basis.

Regarding the Non Habitual Resident (NHR) regime, when there is no need for a specific analysis of clients’ departure from their country, we charge a flat fee according to the client’s family situation (individual or couple).

Our fees our very competitive. Our clients are informed all the time about the status of their NHR process; this follow-up is included in our initial fees. As a matter of fact, we contact the Portuguese Public Treasurer regularly to keep the NHR process up to date.

Besides, our personnel is fluent in English, Spanish, and French and always accompany our clients through their relocation to guarantee a process without problems.