IMMIGRATION TO PORTUGAL

At A Glance

Currency: EUR
Area Code: 351
Capital: Lisbon
Continent: Europe
Native Languages: Portuguese
Population: 10676000
The Portuguese Republic is a transcontinental country member of the European Union. It is located in the southwest of Europe, in the Iberian peninsula. It limits to the east and the north with Spain, and to the south and west with the Atlantic ocean. It also includes the autonomous regions of the archipelagos of the Azores and Madeira located in the northern hemisphere of the Atlantic Ocean. Portugal is populated by over 10 million inhabitants. Its capital and most populated city is Lisbon. Its official language is Portuguese. Its official currency is the Euro (EUR). The country is classified as the 19th with better quality of life and has one of the best healthcare systems worldwide.
 
 

If you wish to immigrate to Portugal and you have regular income from a pension or investments, you may apply for a Temporary Residence Permit to start a new life and settlement in Portugal.

Person Living On His/Her Income

You may get a temporary residence permit if you have regular passive income from your investments and you wish to settle in Portugal. Usually the permit is granted to those who can prove that they have a monthly regular income of at least €1,070.
Your direct dependents may be included in the application.
 
In addition, if you become a Portuguese tax resident (i.e. spending 183 days in a year in the country or having a dwelling in Portugal with the intention to hold it as his habitual residence), and you have not been taxed in Portugal, as tax resident, in the previous five years, you may be eligible for the Non-Habitual Resident Status. Under this regime, you may benefit from a fully tax exemption on foreign-source pensions, dividends, royalties, interest income and other investment income, during a period of 10 years.
 
The Temporary residence permit will be valid for one year, renewable for two-two year periods, provided that you still meet the requirements for which it was issued.
 
After the 5th year of legal residency, you may apply for a permanent residence permit. The PR permit will allow you to live and work indefinitely in Portugal. To be eligible you may be required to have a place of abode in Portugal, have sufficient means of subsistence and some basic knowledge of Portuguese.
 
A permanent residence permit is not subject to minimum stay requirements, but it may be cancelled if you, without an acceptable justification, are away from Portugal for a period of 24 consecutive months, or for a period of non-consecutive 30 months over 3 years.
 
After the 6th year of legal residency, you may be eligible for naturalization. To become a Portuguese citizen, you may be required to attend to an interview, show ties to the country, be able to speak Portuguese and knowledge of history, culture and values of the country.

Dual Citizenship

Dual citizenship is recognized in Portugal. You are not required to renounce your previous nationality to become a citizen of Portugal.

Documents Required

  • Evidence of Health Insurance
  • Original Police Clearance Certificate
  • Receipt of payment of fees
  • Bank Statement
  • Original Bank Reference Letter (Not older than 6 month)
  • Original and photocopy of passport
  • Original or Certified copy of Birth Certificate (if applicable)
  • Original or Certified copy of Marriage Certificate (if applicable)
  • Proof of income

Benefits

  • Dual Citizenship                                                                                     

                          Indicates whether the country recognizes the dual citizenship.                                                                                                                                                                   

  • Family Members Included

                           Whether it is possible or not to include dependents in the application.                                                                                                                                                   

  • Physical Residence Required                                                                     

                           Whether it is required or not to reside a certain time in the country to preserve the obtained immigration status.                                                                             

  • Personal Visit Required

                     Whether it is required or not to visit the country to apply for the program.                                                                            

  • Language Skills Required                                                                     

                     Whether it is required or not to pass a language exam to get your application approved.                                                                       

  • Interview Required                                                                     

                     Whether it is required or not to an interview with government officials to get your application approved.                    

  • Time To Citizenship                                                                     

                     Number of months it takes to be eligible for citizenship.                                                                                                                 

  • Time To Permanent Residency

                     Number of months it take to be eligible for permanent residency.                                                                                                

  • Visa-Free Countries 

                     Number of countries whee you can travel visa-free  or visa-on-arrival with a passport of a given country.                   

  • Financing Available

                            Whether there is or not a financing option through passport.IO                                                                                                                                                                

Permanent Residency Benefits

  • The right to live and work in Portugal without any time limit.
  • Access to healthcare and education system.
  • Be eligible for citizenship in a short period of time.

Temporary Residency Benefits

  • Pleasant climate territorial tax system.
  • High quality of life.
  • Low cost of living.
  • Be eventually eligible for permanent residency.
  • Peaceful, democratic and politically stable country.
  • Travel visa-free across the European Union.
  • Low cost program.
  • Free education and medical on government level.

Visa Free Travel

With your new passport from Portugal you’ll be able to access 171 countries visa free, as seen below in the map.

Taxes

An individual is deemed to be tax-resident in Portugal for tax purposes if he or she spends more than 183 days in a 12-month period in the country or maintains a habitual residence in Portugal.
 
Tax-residents are subject to tax on their worldwide income, while non-residents are taxed on their Portuguese-source income.
Personal income is taxed at progressive rates from 14.5% to 48% on annual income exceeding €80,000. Non-residents are taxed at a flat rate of 25%. A solidarity rate, which varies between 2.5% and 5%, may apply to taxable income exceeding €80,000.
 
Capital gains are taxed separately at a flat rate of 28%. 50% of gross gains derived from the sale of shares held on unlisted micro and small companies are subject to taxation.
 
Tax residents’ 50% of capital gains from the sale of real estate is taxed at marginal rates from 14.50% to 48%. An exemption may apply if property is the taxpayer’s primary residence. 
 
Investment income is usually taxed at a 28% flat rate. However, tax-residents may opt to be taxed at marginal rates from 14.50% to 48%. Investment income from a black-listed jurisdiction may be taxed at a 35% tax rate.
 
New tax residents who have not been taxed in Portugal as tax residents in the previous five years, may qualify for the Non-Habitual Resident Regime. Under this regime, foreign-source pensions, dividends, royalties, interest income and other investment income is exempted from taxation during a 10-year period.
 
Portugal has controlled foreign company rules, under which income retained in foreign entities (non-EEA) owned by tax residents may be attributable.