The government has introduced a 10-year income tax exemption window for foreign residents moving to live in Portugal – and this extends to retirees moving in and receiving their income in the form of a pension.
It really benefits anyone who moves to live in the country and who comes with foreign sourced income from a nation where there is a double taxation agreement in place with Portugal.
If you’re a British retiree with a pension income, you can now live in Portugal for 10 years and not pay any income tax at all during that period. However you may still be liable for capital tax gains.
What all of this means is that Portugal has become a new attractive tax haven in the heart Europe.
With its excellent climate, beautiful beaches, award winning golf courses, fantastic property options and excellent quality of life, Portugal is now a top country to consider for retirement abroad.