Hi All,
I’m an American,
Can anyone give me details on the NRH income tax in Portugal after the 10 year residency term expires? I just heard that you will pay extremely high taxes after that. Something like 37% for a retirement income of only 25-40,000 a year! I am planning to retire and buy a home in Portugal but this information scares the hell out of me! Why is no one on youtube or any media platforms who are expounding the benefits of retiring in Portugal not talking about this.
Thanks
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You need to consult a tax specialist.
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Hello Mr. Anderson
NHR is limited to 10 years and the next tax fees (whiteout the NHR benefit) will depend on many aspects as your expenses in Portugal (such as property, for ex) and where do you income came from.
Like the US it’s a sliding scale so you wouldn’t be paying 37% on all your income.
The latest PT tax brackets I have seen are:
| Taxable Income | Tax Bracket | Deductable | |
|---|---|---|---|
| Min | Max | ||
| € - | € 7,112 | 14.5% | |
| € 7,113.00 | € 10,732 | 23.0% | € 604.54 |
| € 10,733.00 | € 20,322 | 28.5% | € 1,194.80 |
| € 20,323.00 | € 25,075 | 35.0% | € 2,515.83 |
| € 25,076.00 | € 36,967 | 37.0% | € 3,017.27 |
| € 36,968.00 | € 80,882 | 45.0% | € 5,974.54 |
| € 80,883.00 | € 1,000,000 | 48.0% | € 8,401.21 |
Definitely worth talking to an account for more detailed advice.
Thanks for the information. Is this on worldwide income or purely income generated within Portugal?
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Worldwide.
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