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End of NHR and tax for expat arrivals next year

Glenn Allen

The Portuguese Prime Minister yesterday announced the end of NHR as of 31/12/2023.

A friend is moving to Portugal early next year.  My friend's country of origin does  not have a Double Taxation Treaty with Portugal and hence on a pension income of around €17600, I have calculated his tax to be approximately €3600 using the tax brackets for Portuguese taxation.  This means my friend would only have €14000 to live on.

Have I calculated this correctly?

It seems a lot of tax on a retiree's pension.

All advice is welcomed.

See also

The tax system in Portugal NHR and taxHelp to register to NIF, Tax and NHRNHR and UK dividend taxTax Implications for Digital Marketing Business Under Portugal's NHRHas anyone ever lost their NHR status before the 10-year term ended?NHR - Government launches transitory tax regime
JohnnyPT

It's not that much. It's around 2,500 euros. A deduction is always applied (4104 eur).


You can do a simulation here:


https://www.comparaja.pt/simuladores/simulador-irs

Glenn Allen

@JohnnyPT Phew! Thanks Johnny

JohnnyPT

@Glenn,

And if you always ask for an invoice with your NIF number, you can deduct at least 250 euros from that amount. (Eg. Shopping expenses)

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