Reintroduction of NHR Tax Regime: A Game-Changer for Portugal’s Property Market
Portugal’s property market is set to experience a significant boost with the reintroduction of the Non-Habitual Resident (NHR) tax regime, now rebranded as the IFICI+ program. This initiative, part of the government’s extensive economic revival measures, aims to attract talent and investment by offering enticing tax benefits to new residents. Here’s what you need to know about this pivotal development and its implications for the Algarve property market.
IFI CI+ Program Overview
The IFICI+ program is a revamped version of the previous NHR tax regime, designed to attract professionals from various high-value sectors. The program will be regulated through an ordinance, ensuring a swift implementation without requiring parliamentary approval. Key aspects include:
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Eligibility:
- Non-residents who have not lived in Portugal for the past five years.
- Individuals earning income in specific professional categories such as scientific research, IT, teaching, tourism, and agriculture.
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Tax Incentives:
- A flat tax rate of 20% on professional income earned in Portugal.
- Exemptions on most foreign-sourced income, including dividends, interest, capital gains, and rents. Notably, pensions are excluded from these exemptions in the new scheme.
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Program Duration:
- Benefits extend for a ten-year period from the date the individual becomes a tax resident.
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Regional Adaptations:
- Madeira and the Azores can tailor the eligible activities to better suit their regional needs, potentially enhancing the appeal for new residents in these areas.
Impact on the Algarve Property Market
The Algarve, known for its stunning beaches, vibrant culture, and serene lifestyle, stands to gain significantly from the reintroduction of the NHR regime. The program is expected to attract a wave of high-net-worth individuals and skilled professionals seeking to relocate, thereby driving demand for premium real estate in the region.
How Casa Costa Properties Can Assist
At Casa Costa Properties, we specialize in helping clients find their ideal homes in the picturesque regions of Aljezur, Odeceixe, Sagres, and Lagos. Our team is well-versed in the intricacies of the NHR regime and can guide you through the process of leveraging these tax benefits. Whether you’re looking to buy a primary residence or invest in rental properties, our expert agents are here to assist you every step of the way.
Contact Us
Explore the opportunities the IFICI+ program presents and let Casa Costa Properties help you find your dream home in the Algarve.
Browse through our diverse property listings in the Algarve or send us your requirments for off market listing! From tranquil villas to charming townhouses, locate your ideal home today. View our listings here.
Disclaimer: The information provided in this article is for general informational purposes only and is not intended as legal, financial, or tax advice. For specific advice tailored to your situation, please consult with a professional advisor. Casa Costa Properties does not guarantee the accuracy or completeness of the information and will not be held responsible for any errors or omissions.
