End of NHR and tax for expat arrivals next year

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Glenn Allen Member

Member since 29 September 2023

Glenn AllenMember04 October 2023 09:29:52

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.

JohnnyPT Portugal Expert

Member since 23 May 2020

JohnnyPTPortugal Expert04 October 2023 10:41:49

4520

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 Member

Member since 29 September 2023

Glenn AllenMember04 October 2023 11:14:15

@JohnnyPT Phew! Thanks Johnny

JohnnyPT Portugal Expert

Member since 23 May 2020

JohnnyPTPortugal Expert04 October 2023 13:27:48

4520

@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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