Home Immigration Why Portugal’s Tax Deal is Bad for Millionaires

Why Portugal’s Tax Deal is Bad for Millionaires

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Why Portugal’s Tax Deal is Bad for Millionaires

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Portugal has what is called a non-habitual residence (NHR) tax regime. In effect, it is a program that allows qualifying individuals the opportunity to become tax residents of a “white-listed” jurisdiction and still legally eliminate their taxes on most foreign-source income.

The tax residency is good for 10 years and does not come with the typical obligation that you visit or live in Portugal for part of the year to maintain your tax resident status there.

The biggest draw of the program is the opportunity to reduce your income tax to zero.

Is it a good deal for everyone?

In this video, Andrew explains why Portugal’s tax deal is bad for Millionaires.

00:00 Start
0:22 Portugal’s NHR Program
2:00 Tax Reduction Options in Europe
4:53 Living in Europe
6:07 Living in Portugal
7:19 Living in Ireland

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DISCLAIMER: The information in this video should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Nomad Capitalist can and does not provide advice unless/until engaged by you.

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23 COMMENTS

  1. It´s not so interessting WHERE we live in 10 yrs, it´s more interessting IF we live in 10 yrs.🤔
    P.s: I like your topics and the work you put in, thanks for that!👍
    I used to live & work in Portugal for 3 yrs…. thank god i earned there a bit under 200k/year so i had not think much about "saving taxes" and could instead enjoy the beautiful country and very friendly portugees citizens…..thank god i had none of these😘 "millionaire issues"!
    I own two normal apartments, no car/boat, 9 months per year work ratio,…i think i´m lucky! 😎
    I DON`T even wanna be a millionaire,…i think i would waste my precious time in sorrow to uphold my "millions"🤯
    my "time" is the most valued item i have, and i´m thankful to share it with my friends & loved ones!🥰

  2. Hey NC. Have had the book for awhile and a subscriber for a couple years. Now that you are more free and not doing as many videos personally would you consider an average Joe channel? I know the boutique 7-9 figure folks make the business work but like many of us you were born an average Joe and still recognize the value of a trifecta approach. A channel for those of us in the category that don’t fit your filter (website questions) but still want to trifecta our way around the world like when you were a young buck would be simply cool. If you have the time.

  3. Most countries in the EU have territorial tax systems, which means that for tax residents (living more than six months per year in the country in question), as long as your foreign company pays atleast 50% of your country's actual tax rate abroad, you will not be responsible for paying any tax within the European country where you live according to their CFC (controlled foreign company) rules. It is useful to check out what the CFC rules where you live to make sure though.

  4. Am I understandning the NHR correctly as per this example: I am employed by a Scandinavian company, completely remotely so my salary will be from this Scandinavian country. Living in Portugal on NHR, income from another country is not taxed. Will I be tax free on my salary for 10 years?

  5. Portugal has an amazing client, but the real estate market is overpriced, and without foreigners, there are no buyers to real estate. If you buy a house in Portugal, it might takes years to sell. Important to understand location in Portugal, not what the real estate agents tells you.

  6. thank you for breaking it down!! This season has been really great, I'm so happy I have been earning $ 60,000 returns from my $9,000 investment every 21days, all thanks to Expert Arjun B Jagat.

  7. Many individuals come to Portugal because crypto is not yet regulated. Let's see how this will change if the proposal to tax crypto at the highest 28% capital gains tax (plus some other rules) will pass next year.

  8. Thank you for another informative video.
    I am a huge fan of this channel and Andrew.
    .
    BTW, I have two questions.
    .
    Do you think the UK's Tier 1 Investor Visa will ever come back ?
    .
    What will be the future of immigration for entrepreneurs under Rishi Sunak?
    .
    It will be great if you shed some light on these matters.

  9. What I've often wondered is whether you would be hit with a large exit tax if you chose the Portugal option? Let's say you decide to take advantage of the 10 year deal and live in Portugal. You're happy with your mid-single digits tax rate. You continue to build your business over the 10 years that you're tax resident in Portugal. Then your 10 years is up and you decide to move to say Italy for your tax purposes. Is Portugal going to try and tax you on the growth of your company over that 10 years?

  10. Even for the normal guy Portugal is becoming expensive fast. I know alot of people that were on the D7 visa that are leaving now. Places that were €600 rent a year ago are now over €2500 a month in Lisbon. Porto is also getting quite expensive these days. I also fpund both locations rather overrated for what you get. Would rather be in SEA to be honest.

  11. thanks for all your great videos .. one i would love to see is what countries are low tax rate on crypto currencies including Asia Europe and South America specifically .. the west is high we all know this lol

  12. Just for all Nomad Capitalists to know:
    The (Socialist) Portuguese Government has just announced in its Budget Plan for 2023 that energy companies and large retailers will be subject to windfall taxes because they are "unfairly profiting from the disgraceful impact that the inflation caused by the war on Ukraine has been impacting the people".
    Please note that the Portuguese corporate tax burden is already the highest in the OECD, and these companies already pay corporate taxes and continue to pay extra contributions that 10 years ago were previously labeled one-offs.

    Again, for those thinking about investing in Portugal, RUN!

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