Portugal, foreign pensioners will have to pay taxes from 2024

Portugal will no longer be the El Dorado of foreign pensioners, who determined to transport to the westernmost u . S . In Europe to keep away from paying taxes on their pension or pay very little. As Portuguese Prime Minister Antonio Costa announced in an interview with CNN, Portugal will no longer furnish tax exemption to overseas pensioners beginning next 12 months. “Maintaining it in the destiny could be tantamount to prolonging a measure of unjustified fiscal injustice and would be an oblique manner to keep increasing costs within the actual property marketplace,” the pinnacle of the socialist authorities said. However, the exemption regime stays in force for the ones pensioners who've already received ithe precised.

Introduced in 2009 for pensioners who spent at least six months of the yr in Portugal, the exemption changed into total until 2020. After that, the tax rate was set at ten percentage. The aim turned into to draw foreign capital to Portugal. Around 10 thousand people benefited, on the whole Italian, British and French pensioners, who settled especially within the Lisbon region or in the Algarve inside the south.

As a result, there was a superb growth in assets charges inside the u . S . A .. According to a examine by means of the Portuguese Francisco Manuel dos Santos Foundation, between 2012 and 2021 the value of housing grew by means of 78% in Portugal, compared to 35% for the entire European Union. Additionally, in the 2nd quarter of 2023, the average domestic rent accelerated by means of some other eleven percentage yr-on-yr, in line with legitimate facts released closing week.

In this context, lots of Portuguese took to the streets of Lisbon and around twenty different cities in the united states on Saturday to call for more decisive intervention from the authorities. In response, Costa’s executive has adopted a sequence of measures geared toward containing property prices which consist of in particular the cease of the ”golden visas” and the obligatory lease of apartments which have been vacant for greater than  years in maximum populated areas. In useful resource of virtually a million families, the Portuguese government has decided to provide a reduced price for two years to individuals who are paying a loan.