Almost everyone who becomes a fiscal resident in Portugal will pay only 10% taxes on their pension. But there are certain exceptions such as citizens with residency in tax havens or countries like Sweden which withdrew from the tax convention with Portugal.
From the moment you become a Portuguese tax resident, it is up to the Portuguese government to tax your pension. For the first 10 years the Portuguese government will tax you only 10% on your pension income. The same applies to your dividends, capital gains taxes, royalties and real estate rent income. You are exempt from inheritance taxes.
Portugal is a popular holiday destination among many all year round. It enjoys one of the most stable climates in the world and south of Lisbon there are 300 days of sunshine per year, meaning more sunny days than anywhere else in Europe. As a result, Portugal has a longstanding reputation as a top summer destination among European sun-seekers and a top winter retreat for those looking to escape Northern Europe’s coldest months.
Portugal ranks as the 3rd safest country in the world. Violent crime is rare, and petty crime is limited to the street crime during the busy tourist season.
Portugal has invested heavily into infrastructure, specifically the highway network and airports. This makes it a great base for exploring all of Europe and Northern Africa.
Medical tourism is a growing industry in Portugal. People travel here for cosmetic aesthetic treatments, hip replacements and specialist dental work.
Portugal is a Mecca for golfers with 87 courses currently and growing. It is recognized as the top golfing destination in continental Europe, and some would say the world.
The Portuguese Atlantic coastline has alluring bays and extensive sandy beaches; many awarded coveted Blue Flags from the European Blue Flag Association. The water of these shores is azure and the cliff-top vistas are spectacular. Most beaches have lifeguards during the summer season along with restaurants and snack bars.
cost of living
On average 30% lower than all major EU economies, the cost of living in Portugal is among the lowest in Western Europe. A retired couple can live here comfortably on a modest budget of as little as €1,500 per month. Increase this to €2,000 per month and enjoy a fully appointed lifestyle in the heart of the Old World.
English is widely spoken in the country. Retirees can easily get by without learning to speak Portuguese.
All varieties of fresh fish are available in the daily markets so it is no wonder that the Portuguese are the biggest fish eaters per capita in Europe. Add to this the abundance of sunshine in this part of the world means and you get a vast abundance of fresh fruit and vegetables also available.
Real estate in Portugal is among the most affordable in Western Europe. It has one of the most favorable price-to-rent ratios (a measure of the profitability of owning a house) and price-to-income ratios (a measure of affordability). This means that housing is cheaper to buy and investors can make more money from rentals than in many other European countries.