It is the end of an era. After more than a decade, Portugal will no longer be a tax haven for foreigners (mostly retirees and digital nomads) who, by residing in the country, enjoyed very favorable tax conditions.
The Prime Minister, Antonio Costa, declared yesterday that as of January 1, 2024, the privileged tax treatment will end. “It no longer makes sense to maintain it,” he said, alleging that it was an “injustice.”
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Until now, any foreigner who wanted to join the special regime (RHN) had the possibility of paying only 10% taxes if they were retired. In the last two years, these benefits had also been extended to the self-employed or qualified workers (doctors, engineers, architects…), who only pay a fixed rate of 20% on their income.