Portugal launches tax incentive to attract foreign workers

Portugal launches tax incentive to attract foreign workers - Portugal Business News

Portugal news – Portugal has just launched a new tax incentive to attract foreign workers.

Portugal has taken decisive steps to attract foreign talent with a new tax incentive, the IFICI+, that provides for a 20% income tax threshold.

Foreigners who choose to come to work in Portugal will now be able to enjoy tax benefits under the IFICI+ tax regime that seeks to attract foreign workers in both the self-employed and employed categories. This means that anyone who stays in Portugal for at least 183 days and establishes their tax residence there will be able to pay only 20% of IRS, for a period of ten years, renewable.

Portugal’s new talent attraction regime covers exclusively income category A (dependent work) and category B (independent work), which will now have a rate of 20% for non-residents who start to reside in Portugal and who have not resided there in the last five years nor are currently benefiting from the previous regime that was created in 2009.

However, this new tax benefit for foreigners who choose to live in Portugal is only for salaries and professional income. The new tax benefit for foreigners living in Portugal excludes dividends, capital gains and pensions, since these would have created a problem between Portugal and countries like Finland or Sweden.

Portugal’s new tax incentive for foreign workers is crucial to attract highly qualified foreign workers, that will in turn boost the country's economic growth.

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