Pensions Foreign Origins

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TAX ADVANTAGES & PENSIONS FOREIGN ORIGINS  (Retired in Portugal)

Benefits:

The Scheme of non-habitual residents, allows preferential tax treatment for qualifying income earned from a Portuguese source for non-habitual residents.

Under this scheme, individuals classified as non-habitual residents are eligible for special tax rates apply to income derived from Portuguese source and can benefit from tax exemptions on income from foreign sources.

Who can be considered "Non Resident Ordinary"?

An individual is considered resident unusual when you become a tax resident in Portugal and that has not been taxed as such in the last five years before qualifying as a tax resident Portuguese. Individuals who meet the requirements below are eligible to register as non-habitual residents and have the right to be taxed as such for a period of 10 consecutive years and may be renewed.

DETAILS "No Ordinary Resident":

Became a resident for tax purposes in Portugal, according to the rules established in the IRS Code, the year in which a non-habitual resident is intended to begin to be applied;

• Was not considered as resident in Portuguese territory for tax purposes in any of the five years preceding the year for which the regime of non-habitual resident intended to be put into effect, confirmed by filing a statement of the taxpayer;

• Application for registration of a non-habitual resident after registration as a resident in Portugal for tax purposes, or until March 31 of the following year;

The Portuguese Tax Authority recognizes submitting additional documentation (certificate of tax residence in another country in the previous five years) is only required if there is doubt as to the veracity of the information provided by the expatriate.

Foreign Pensions origins

Pensions from foreign professionals benefit from a tax exemption if they are subject to tax in the country of origin, in accordance with the provisions of a tax treaty or is deemed not to be derived in Portugal, according to the Portuguese rules of supply, or is not paid by a Portuguese resident entity or tax attributable to a permanent establishment of a non-Portuguese resident. Occupational pensions of foreign origin can also benefit from a potential double non-taxation, the tax treaty applies prevents the country of origin of taxing pension.

(Note that the taxing rights on pensions of retired civil servants and other government employees in general are taxed by the state, regardless of the state of residence of the beneficiary).

Who can qualify for the "Not Ordinarily Resident" in Portugal?

Qualifying as Not Ordinarily Resident also depends on the performance of professional scientific and technical high value. Ordinance 12/2010, of January 7, listed the activities that, for purposes of these rules are considered high-value activities. Included:

• architects

• engineers

• similar technical

• artists,

• actors and musicians

• accountants

• doctors and dentists

• teachers

• psychologists

• professions

• technicians and the like

• investors

• directors

• managers