Tax Consulting In Portugal: An Expats Guide
Stepping into Portugal’s tax world can be as intricate as navigating its charming, narrow streets, Right? Don’t Worry! We’ve got you covered!
This guide illuminates the path through Portugal’s tax rules, tailored specifically for expats and newcomers. We’ll equip you with essential insights and practical tips to efficiently manage your tax affairs in this beautiful country.
Let’s dive in!
Tax Consultant
A tax consultant can assist you in reducing your tax bill, maximizing tax deductions, and managing your tax situation. Tax consultants, who have greater experience than basic tax preparers, can assist with tax planning, inheritance difficulties, charitable giving, and other complex tax needs.
These consultants frequently have a background in tax law or accountancy. Fees vary depending on the extent of work as well as the tax consultant’s expertise and experience.
If you require additional assistance with your taxes, investments, or long-term finances, a financial advisor can assist you in developing a financial strategy.
Expats In Portugal: Tax Advice
- Financial accounting for current taxes
- Bookkeeping in the Digital Age
- Payroll
- Financial statement preparation in accordance with business and tax law
- All continuing tax returns must be produced.
- Assessments of taxes are being reviewed.
- Representation in front of authorities
- Assistance with tax audits and talks with tax authorities
Consultation On Taxation
- Assistance and help with legal paperwork
- Reducing the tax burden on individuals and corporations
- Assistance with the formation of a firm, operation splits, conversions, operational duties, and transfers
- Tax planning for succession, inheritance, and gifts
- Investment conception
- Detailed advice on foreign relations tax structure
Regime Of Non-Habitual Tax Residents
The Non-Habitual Tax Resident Regime (NHR) is one of the main tax benefits granted by Portugal to foreign citizens.
The Non-Habitual Tax Resident Regime is a specific tax regime that applies to individuals (and their families) who become tax residents in Portugal for the first time after not having done so in the preceding five years.
Non-habitual tax residents may benefit from this status for a ten-year term. One of the two qualifications must be completed for an individual to become a tax resident in Portugal:
- Spending at least 183 days in Portugal in a single year, whether constantly or intermittently
- Having a residence in Portuguese territory that qualifies for ‘habitual residency’ in a particular year.
Once awarded NHR status, a variety of unique tax incentives apply to both foreign-sourced income and income earned in Portugal.
In terms of foreign-sourced income, full exemptions may be available for income from dependent labor, independent personal services, capital (in the form of interest, dividends, etc.), capital gains, and immovable property.
This means that if the applicable conditions are met, Portugal will not tax these types of income, leaving only the taxation connected to the source (of the income) State.
A special mention should be made of pension income, which may be tax-free in both Portugal and the originating country, creating a highly appealing instance of 0% taxation.
A 20% flat rate will apply to income earned in Portugal from dependent labor and independent personal services in activities recognized by Portuguese legislation to be high-value-added activities (a broad category).
Other types of income in Portugal are taxed at various specific rates.
ACCACE
The tax compliance service focuses on the Portuguese corporate income tax (CIT), VAT, personal income tax (PIT), and social security, as well as local taxes, withholding taxes, excise taxes, and customs charges.
Registrations For Taxes
- Ensuring the registration process with local authorities in Portugal
- In Portugal, you must register for CIT, VAT, and VAT refunds, as well as other taxes.
- Assistance with Portuguese tax office inquiries and dispute resolution
Tax Filings And Compliance
- Creating and submitting statutory tax returns
- Payment of tax liabilities to local governments
- Other tax consulting services in Portugal include CIT, VAT, local taxes, withholding taxes, excise taxes, and customs charges.
- Internal and external tax audits provide guidance and support.
- Representation in interactions with Portuguese tax officials and local authorities
Transactions And Tax Advice
- International tax consulting
- Personal income tax, non-resident services, and global mobility
- Local representation and transfer pricing services
- Transaction services, merger and acquisition taxation, and legal structuring
- Financial, tax, and legal due diligence
- Tax, accounting, and financial training for professionals
Personal Income Tax
When dealing with complicated tax, social security, or foreign assignment concerns, our in-house team of experienced tax specialists is ready to give the necessary advisory help – in accordance with Portuguese tax law and market best practices.
- Individual planning, payroll, and taxation methods for both Portuguese residents and non-residents
- Filing and compliance with Portuguese personal income tax returns
- Other statutory reporting duties for social security, health insurance, and other benefits
- Representation in dealings with the Portuguese tax authorities, social security and health insurance firms, and other authorities
- Non-residents can make use of a full range of global mobility services.
Horizon Consulting
Horizon Consulting offers tax consulting, representation, bookkeeping, and accounting services through its network of partnerships and independent specialists, supporting both individual and business clients with tax compliance in Portugal.
Tax Consultation
Tax consulting is required in order to adequately advise a specific case and is thus highly recommended in order to avoid unpleasant surprises, particularly when relocating to a new country and dealing with a new tax regime.
Horizon tax consultation fees are among the most competitive in the market.
Representation In Taxation
A Portugal taxpayer identification number (“NIF”) is required for anyone seeking to perform a transaction requiring registration in Portugal, from the purchase of insurance to the purchase or rental of real estate (save for tourist accommodation).
Individuals or businesses must select a resident tax representative in order to receive such a number unless they are EU residents.
Horizon Consulting can function as a tax representative in Portugal for non-resident people and businesses, assisting them with tax compliance in Portugal.
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Forth Capital
The Forth Capital’s international tax service provides high-quality cross-border and Portuguese tax assistance to persons moving to Portugal, living in Portugal, or purchasing property in Portugal.
Tax Consulting And Compliance Services In Portugal
You can meet your tax and reporting obligations while benefiting from the extensive knowledge and best practices that align with Portuguese regulatory frameworks.
In order to remain compliant with all requirements, mitigate your tax risks, and improve the efficiency of your local and international operations in Portugal and throughout the region go for Forth Capital
UK-Residence
The UK’s residency requirements are extremely difficult, and if you fail to take these rules into account, you may mistakenly be considered a UK resident, particularly if you visit the UK frequently and maintain contact with the UK.
The Forth Capital will walk you through the UK residency laws and make sure you understand how much time you can spend in the country without triggering UK residency.
Capital Gains Tax Planning
In both the UK and Portugal, Forth Capital will examine your capital gains tax liabilities and consider the best time to sell assets to minimize your tax responsibilities.
The capital gains tax regime in Portugal is determined by the type of asset sold and the location of the asset. It can advise you on your liabilities in Portugal, as well as any available reliefs and discounts.
Income Tax Planning
It can provide tax planning advice for various types of income, such as rental income, salary vs. dividends, investment income, share options, and more.
Succession Tax In Portugal
Stamp Duty is Portugal’s inheritance tax, and it is paid by the beneficiary at a flat rate of 10% on chargeable assets. There are significant exemptions and reliefs, particularly for close family and assets situated outside Portugal.
- UK Inheritance Tax: Even if you become a resident of Portugal and live there for a long time, you may still be subject to UK inheritance tax, which is calculated based on your domicile status rather than your residence status. A person with a UK domicile may find it challenging to change their domicile. This company can advise you on the actions you would need to take and the benefits of gaining a non-UK domicile where this is likely to be practicable.
- Pension Planning: Pension rules in the United Kingdom have been significantly developing in recent years. If you become a resident of Portugal, you may be able to avoid paying tax on your UK pensions entirely.
- Tax-Efficient Investments: Investments that are tax efficient in the United Kingdom may not be tax efficient in Portugal. This company can advise you on your options as a Portuguese resident and how restructuring can help you save money on both UK and Portuguese taxes.
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Master TaxConsultants Portugal
Julia Filipe team has been providing tax counseling, tax planning, and tax compliance in Portugal for over 25 years, with an emphasis on income and inheritance taxes.
Its foreign clients include both corporate and family accounts. Services are specialized while taking into account the complete range of your unique requirements.
- They have the pleasure of delivering customized and innovative ways as boutique tax consulting.
- Regardless of size or complexity, clients receive their full attention and round-the-clock availability.
- This guarantee and attitude have resulted in a large number of repeat customers.
The Julia Filipe team’s services cover a wide range of specialties, as well as deep industry expertise, they satisfy the needs with a well-planned, detailed answer.
The team considers your complete journey, not just the next step while studying and adapting trends to stay ahead of the competition.
- The Non-Habitual Residency (NHR) tax regime, as well as other areas of compliance with your tax residency in Portugal, are critical factors in which we have extensive experience.
- As private wealth tax managers, they assist high-net-worth individuals in developing estate plans that will protect the assets and pass them on to future generations.
- Many international banks seek our assistance in assisting their clients choose Portugal’s Golden Visa option.
- International executives rely on them to create an effective tax basis and tax rates in Portugal, both for personal income tax and Social Security Contributions.
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Belion Partners
Belion can help you save money on taxes by establishing a home and/or a business in Portugal. In an uncertain global economy, accurate tax preparation is critical for corporate success.
Individuals who face their own issues operating and preserving companies and assets in a complicated regulatory environment can also benefit from tax planning.
In Portugal, aggressive tax planning is countered by a general anti-abuse rule (GAAR) and various anti-avoidance measures, such as:
- mandatory disclosure of abusive tax planning, special rules on tax-driven business restructuring, and restrictions on payments to residents of blacklisted tax havens.
Belion Portugal’s tax advising team has successfully helped hundreds of clients reduce their tax liabilities after establishing residences and/or enterprises in Portugal.
Portugal’s Non-habitual Resident Regime
Enjoy reduced tax rates on Portuguese-source income for a decade, while most foreign-source income is tax-free in Portugal.
Accountancy And Tax Representation
Belion assists both individual and business clients with tax representation, bookkeeping, and accounting.
Personal Income Tax
Portugal taxes individual income at progressive rates, with the exception of new residents, who are subject to a unique regime.
Income Tax On Businesses
In Portugal, the corporate tax rate is 21%, plus any applicable surtaxes.
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ECOVIS
Ecovis is a multinational consulting organization with roots in Continental Europe. It employs almost 9,300 individuals and operates in over 80 countries.
Its consulting focus and primary strengths are in tax guidance, accounting, auditing, and legal assistance.
The combination of personal counsel at the local level with the general competence of a worldwide and interdisciplinary network of professionals is Ecovis’ particular strength.
Conclusion
As we reach the end of our journey through Portugal’s tax landscape, keep in mind that being well-informed is key to successful tax management.
With the strategies and knowledge gleaned from this guide, you’re now prepared to tackle tax matters with confidence and ease, ensuring a smooth financial transition into your new Portuguese life.
Tax Mastered!
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