Portugal tries to make its tax system more attractive

Portugal implemented a special taxation system of Personal Income Tax, which should attract foreign experts and qualified staff for work in Portugal. Special taxation applies to incomes derived from high added value activities of a scientific, artistic or technical nature (e.g. auditors, doctors, actors, musicians, architects, etc.).

If stipulated conditions are met, these persons should obtain a special tax status („non-regular resident of Portugal“) and better tax treatment for next 10 years. Incomes derived from the employment and self-employment in Portugal are taxed by the special reduced tax of 20 %. Incomes from employment, self-employment and pensions from the abroad are tax exempted in Portugal, if were already taxed in abroad.