Retirement in Portugal

The government has introduced a new incentive to encourage foreign residents to relocate to the nation (Portugal).

The government has introduced a 10-year income tax exemption window for foreign residents moving to live in Portugal – and this extends to retirees moving in and receiving their income in the form of a pension.  The tax holiday has been backdated to the 1st of January last year, and it really benefits anyone who moves to live in the country and who comes with foreign sourced income from a nation where there is a double taxation agreement in place with Portugal.



Because of its fantastic climate and excellent standard of living, Portugal is one of the top destinations with people looking for a retirement destination abroad. If you’re searching for a place that will offer you a low cost of living, a healthy lifestyle and plenty of things to do and enjoy, Portugal is your number one choice.

So, if you’re a foreign retiree with a pension income, you can conceivably now live in Portugal for 10 years and not pay any income tax at all during that period. You may still be liable for capital gains tax however, but according to comment in the Daily Telegraph: “Legitimate offshore structures are available to shelter gains and income regardless of the new 10 year exemption.”

What all of this means is that Portugal has become a new tax haven in the heart of attractive Europe – and so what with its excellent climate, beautiful beaches, plethora of golf courses, fantastic property options and excellent quality of life, Portugal is now a top hotspot to consider for retirement abroad.




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