Renowned for its affordability, Portugal boasts one of the most economical standards of living in Western Europe. Notably more budget-friendly than neighbouring Southern European nations like Spain and Italy, Portugal encompasses reduced expenses across various categories, spanning dining out, utilities, and rent. This financial advantage has contributed to the growing desire among individuals to choose Portugal as their retirement haven. Moreover, the nation’s diminutive yet vibrant presence on the western Iberian Peninsula translates to exceptional safety, top-tier healthcare, and a population fluent in English. As retirees contemplate life in Portugal, they can anticipate heightened financial flexibility, as living costs remain lower compared to their home countries, allowing for an elevated quality of life minus concerns regarding.
Selecting Portugal for your retirement offers a multitude of compelling rationales. With a reduced cost of living, your retirement savings can be stretched to cover a more extensive range of expenses. Housing, healthcare, transportation, and daily necessities all come at a lower price point, facilitating a comfortable lifestyle while preserving your financial resources. The resulting augmented purchasing power empowers you to relish an elevated standard of living without straining your budget. An often-underestimated advantage lies in the diminished financial stress, allowing you to revel in your retirement years without the constant worry of making ends meet. This principle is deeply ingrained in the ethos of Life Plan Resorts. Embracing a carefree lifestyle is our guiding principle, and through our innovative financial structures, we provide you with both fiscal and psychological reassurance. By acquiring a Life Right through a single upfront payment, you gain the privilege of residing in the apartment of your preference for the entirety of your life, exempt from anxieties about escalating rents and inflation. This ensures unwavering financial security and tranquillity, not only for you but also for your loved ones.
Furthermore, the Portuguese government has taken significant steps in recent times to make the country even more enticing to retirees and expatriates. Streamlined residency requirements and tax regulations have been implemented, offering the potential for up to a decade of tax benefits. This deliberate measure undoubtedly aids in extending your retirement savings, making Portugal an increasingly compelling choice for retirees seeking a harmonious blend of financial stability, security, and quality of life.
- Taxes For Retirees in Portugal
Portugal typically taxes all income. This includes pension income and income from international sources. However, Portugal has proactively embraced measures to create an inviting atmosphere for expatriates, exemplified by the concept of Non-habitual Residence (NHR) status. This status is extended to individuals who have not held tax-resident status in Portugal within the last five years. Those who qualify for NHR enjoy a noteworthy benefit: a decade of exemption from Portuguese income tax on their earnings. This includes income derived from employment, investments, capital gains, pensions, and rental properties.
In general, the advantages of NHR are:
- Pensions, private pension plans, and unit-linked investments are not subjected to exit taxes.
- Passive income, comprising dividends, interest, and capital gains generated abroad, can be received in Portugal without incurring a taxation rate, provided they are deemed to be taxed in their country of origin.
- Pensions and private pension plans are taxed at 10% in Portugal. This is lower than the income tax rates otherwise applied and particularly favourable for those with higher pension income.
- Assets situated outside of Portugal are exempt from wealth tax(capital gains), inheritance tax (estate duty), and gift (donations) tax.
Life Plan Resort’s decision to establish this exceptional retirement resort in Benavente, only a 30 minute drive from Lisbon capital, is bolstered by the compelling demographics of the European market. With an increasing number of individuals seeking retirement solutions that prioritize healthy ageing, security, and (financial) peace of mind, LPR recognizes the tremendous opportunity to cater to this demand. [47% stated they would consider retiring abroad and 64% of them chose Portugal as their first choice- Into The Minds study]
Aligned with the ethos of a carefree life, our team of experts stands ready to provide guidance and assist with any inquiries. We encourage you to reach out to us, and we will be delighted to elucidate all pertinent details. Share the advantages of PT and LPR.
