Portuguese Tax Law
Portuguese Tax Law, NHR 2.0 & Double Taxation Planning
Moving to or investing in Portugal has important tax implications. Defesa Legal advises individuals and businesses on how to structure their affairs to minimise tax, avoid double taxation and comply with Portuguese and international rules, including FATCA and CRS reporting.
Tax Services
Key Areas of Tax Advice
NHR 2.0 Regime for New Residents
Assessment of eligibility, registration and optimisation of the 10-year preferential tax regime.
Double Taxation Treaties
Guidance on application of treaties between Portugal and the US, Canada and the UK.
Personal Income Tax (IRS)
Analysis of Portuguese tax bands, worldwide income reporting and deductible expenses.
Corporate Tax (IRC)
Structuring of Portuguese and international companies to reduce tax leakage and ensure compliance.
Wealth, Inheritance & Gift Tax
Planning for cross-border families and succession.
Reporting Obligations
FATCA, CRS and other automatic exchange of information rules.
NHR 2.0
The NHR 2.0 Regime
Optimise Your Tax Position
Portugal's updated NHR 2.0 regime offers significant benefits for qualifying individuals relocating to Portugal.20% Flat Tax
Eligible Portuguese-sourced professional income taxed at a flat 20% rate.
10-Year Duration
Benefits apply for 10 years from registration.
Foreign Income
Exemptions or reduced rates on certain foreign-sourced income.
Qualifying Professions
Engineers, IT professionals, executives, consultants and highly qualified professionals.
Treaties
Double Taxation Treaties with US, Canada & UK
Avoid Double Taxation
Portugal maintains double taxation treaties with the United States, Canada and the United Kingdom to prevent the same income from being taxed twice.Pension Income
Treaty provisions for retirement income from your home country.
Dividends, Interest & Royalties
Reduced withholding rates and tax credits.
Employment & Self-Employment
Clear rules on where income is taxed.
Capital Gains
Treaty provisions in specific circumstances.
Our Tax Advisory Process
Step 1: Initial Tax Review
We analyse your existing income, assets, corporate structures and residency.
Step 2: Strategy Development
We recommend an optimised structure for residency, income streams and asset holding, considering both Portuguese and foreign tax rules.
Step 3: Implementation
Coordination with accountants, financial advisors and foreign tax counsel where necessary.
Step 4: Ongoing Support
Assistance with annual tax returns, treaty applications and responding to queries from the Portuguese Tax Authority.
FAQs
Frequently Asked Questions
Do I have to declare worldwide income in Portugal?
Yes. Portuguese tax residents must declare worldwide income, but double taxation treaties and the NHR 2.0 regime may reduce or eliminate taxation on certain foreign income.
How does the US–Portugal treaty interact with FATCA?
The US–Portugal tax treaty coordinates income taxation, while FATCA governs information reporting. We help ensure both sets of obligations are met correctly.
Can I run my business from Portugal but invoice abroad?
Yes, but the structure must be carefully planned to avoid unexpected corporate or permanent establishment issues.
Plan Your Tax Strategy in Advance
Proper tax planning before relocation or investment can save substantial amounts and reduce risk. Contact Defesa Legal to discuss your tax and double taxation strategy.