Permanent residency status in Portugal offers more opportunities than residence permit status. Within the country, there are almost the same rights as citizenship, with the exception of political rights: permanent residents cannot vote in elections and hold public office. Permanent residence in Portugal is granted for an indefinite period. To obtain the status, it is not necessary to live in the country. However, it is necessary to renew the permanent resident card every 5 years. A residence permit in Portugal must be obtained every 1-2 years. Family members of non-EU/EFTA citizens in Portugal must apply for a family reunification visa if they are also from outside the EU. This visa is available for the following parents: A Portuguese residence visa is a travel document issued with a time limit. This period is usually 3 or 4 months. The Embassy of Portugal provides them to allow the applicant to enter Portugal before registering as a resident and after 5 years as a permanent resident.
If a foreigner enters Portugal on a residence visa, they have four months to register with the Immigration and Borders Authority (SEF) in order to obtain a residence permit. Proof of basic knowledge of the Portuguese language is required from the person applying for permanent residence in Portugal. legal in Portugal. Once you arrive in the country, you will have to go to the SEF to have a residence in Portugal. Member States of the European Union (EU) and the European Economic Area (EEA) as well as Swiss citizens do not require a natural person to be a tax resident in Portugal if he or she resides or habitually resides in the country for more than 183 days in any 12-month period. Tax residents are subject to tax on their worldwide income, while non-residents are taxed on their Portuguese income. Personal income is taxed at a progressive rate ranging from 14.5% to 48% on annual income above €80,000. Non-residents are taxed at a flat rate of 25%. A solidarity rate of between 2.5% and 5% may apply to taxable income above €80,000. Capital gains are taxed separately at a flat rate of 28%.
50% of gross profits from the sale of shares in unlisted micro and small enterprises are subject to tax. For tax residents, 50% of capital gains from the sale of real estate are taxed at marginal rates ranging from 14.50% to 48%. An exemption may apply if the property is the taxpayer`s principal residence. Capital gains are typically taxed at a flat rate of 28%. However, tax residents may choose to be taxed at marginal rates of 14.50% to 48%. Capital gains from a blacklisted jurisdiction can be taxed at a rate of 35%. New tax residents who have not been taxed as tax residents in Portugal in the last five years can benefit from the non-habitual resident regime. Under this scheme, foreign-source pensions, dividends, royalties, interest income and other capital gains are exempt from tax for a period of 10 years. Portugal has SEC rules that allow the allocation of income of foreign companies (outside the EEA) held by taxpayers.
A property tax is levied by the municipalities at rates between 0.3% and 0.8%. If the owner is a blacklisted company in a jurisdiction, the tax can be increased to 7.5%. Residential real estate may be subject to additional property tax at graduated rates of up to 1% and 7.5% if the owner is a company based in a blacklisted jurisdiction. Municipalities also levy a real estate transfer tax of up to 6.5% on municipal properties. If the buyer resides in a black jurisdiction, the tax will be increased to 10%. Inheritances and gifts are subject to a stamp duty of 10%. An exemption may apply if the beneficiary is a direct ascendant or descendant. In Portugal, there is no tax on the net wealth of natural persons. The standard VAT rate is 23%. For certain goods and services, an intermediate rate of 13% and a reduced rate of 6% may apply.
With regard to corporation tax, resident companies are subject to corporation tax, a progressive surcharge and a municipal surcharge. The maximum possible combined effective rate is 29.5% (for profits above €35 million). Portugal also includes Madeira, an autonomous region with an advantageous tax system. To learn more about Portuguese corporate taxation, the legal framework and tax treaties, visit incorporatios.io/portugal.This should not be construed as tax advice. We have access to a global network of qualified lawyers and accountants who can give you the right advice for your particular situation. Contact us for more information. Permanent residents of Portugal cannot take advantage of all the travel and resettlement options available to the country`s citizens. For example, a Portuguese passport opens visa-free entry to 187 countries and a permanent resident card to 26 Schengen countries. EU citizens and their family members who are also EU citizens must apply for a permanent residence certificate after having legally resided in Portugal for more than five years. This certificate must be requested before the expiry of the certificate of residence at the SEF offices by appointment.
The cost is 15 EUR. The Portuguese residence permit allows you to stay (legally) in Portugal for a longer period. Once you have received your residence permit, you are allowed to stay in Portugal for 2 years. After 2 years, you can extend it for 3 consecutive years. After 5 years, you can apply for a permanent residence permit, also known as Portuguese citizenship The permit is valid for the same period as the residence permit of the Portuguese resident. Therefore, if a couple has been married for five years, the permit is valid for two years and must be renewed every three years. Holders of this permit can work and study in Portugal and, after five years, they can apply for permanent residence.