Taxes exoneration on retiring pensions for 10 years

• Live in Portugal at least 183 days per year
• Not have been resident for tax purposes in Portugal the last 5 years
• This exoneration can be added to other advantages applied to RNH (Non habitual residents) for example a flat-rate taxation of only 20% applicable on revenues coming from service delivery and salaries received in Portugal.
• NB: Retiring of private people: taxable in the residence state / Retiring of public people: taxable within the state that asks it.

Tax treaty France-Portugal

The residence is determined by the arrangement- of a permanent home of house. If it has a home in every country, we take into account the personal and economic links.

• No double taxation thanks to the tax treaty.
• Capital gains and real estate income imposed in the state of situation of the building.
• Capital gains and investment income imposed in the state of residence (subject to certain source samples).
• Salaries: imposed in the state where the work is exercised, except particular case.
• Dividends and royalties of foreign source: exemption of taxation, under certain conditions.

For active persons and retired people: a status RNH ( not usual attractive resident)

• For the pensions of the private of foreign source: no imposition.
• For the income of the assets the profession of which exercised in Portugal is “for high added value” andor having a scientific, artistic character or technique*: 20 % tax rate (against 45 % in France) during 10 years.
• Other activities: imposition in the progressive scale, varying from 14,5 to 18 %
• All your other income, in Portuguese or French source, will follow the same diet as that applied to the usual nonresidents.

* This arrangement, apparently restrictive, depends in reality on the way of presenting your activity and allows a certain freedom of operation.

Taxation

• Not of ISF in Portugal.
• In the aquisition of a home main or secondary or intended for the rent, the payment of the IMT (Municipal Tax on the Transmissions of buildings for a fee). Progressive amount indexed to the value of the transaction: between 1 % (for the properties lower than 97.407 euros) and 8 % (for the properties up to 574.323 euros. 6 % beyond).
• Tax exemption on dividends, interests and capital gains and to benefit from an imposition on income bound to their activity put an upper limit at 20 % (against 45 % for France).

Patrimonial tax system in Portugal :

• No inheritance tax directly (spouses or common law husbands, descendants or ascendants).
  NB : if heirs live in France, they will be taxable in France on the succession.
• The indirect on-line transmissions (nephews, cousins, friends, etc.) are subjected to the stamp duties at the 10 % rate on the passed on active person.
  NB : between 55 % and 60 % in France.

The coverage of the care

• Conditions of care and refund identical to those the Portuguese thanks to the European agreements of coordination of Social Security.
• To claim to it, it is enough to obtain on the spot an insurance card.
• If you are pensioned by a French pension fund, you remain covered by our social security system. You can always come to make you look in France if you consider the Portuguese system too heavy or too slow. Your care will be taken care by the health insurance according to the current regulation in the date of your return.

The driving licence

The holders of a driving licence emitted in the countries of the European Community do not need to make their licence change. However, the drivers who take up residence in Portugal have the duty to inform the IMTT* within 60 days, at the risk of infraction.

* Institute of the Mobility and the Ground Transport (Instituto da Mobilidade e dos Transportes Terrestres).

A road network and quality infrastructures

The motorway system is among the most modern of Europe. The secondary network is in good condition and we circulate perfectly well on the whole country.