Move to portugal and pay no taxes for 10 years? (NHR regime)

If my Swiss employer would accept my relocation to Portugal, could I get my salary tax-free, for up to 10 years with this NHR program? Otherwise a 100k/y euros salary will be taxed super heavily to up to 46% in portugal…

Seems too good to be true? What’s the catch?

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„ Net capital gains are taxed at 50%, at the normal progressive rates“

50% is from real estate. Capital gain from share and bonds is under a different section:

Subject to an optional rate of 28%, 35% if from a blacklisted tax haven

Switzerland is probably not part of this black list. Also you will find

Rental income, investment income, and capital gains are not taxed in Portugal if they come from a foreign source.

Something to double check with a proper accountant. You probably need to pay the taxes “somewhere”

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Real estate is usually taxed abroad, but the others probably not. (afaik that’s the case for the remittance status in uk and countries who inherited a similar tax code).

I think this may actually be one of the cases where it is too good to be true.

You’ll become resident in Portugal. And as long as Portugal, your tax residency, chooses not to tax you on certain income - even though they “can” (could) according to the applicable DTA - then you just don’t have to pay these taxes. Note that “can” is the usual wording in DTAs, not “have to”.

The common exceptions may be income from assets in the other country (usually business and/or real estate), non-refundable withholding tax and departure tax (which Switzerland doesn’t levy, to my knowledge, as they’re often a tax haven themselves).

I assume that you will need pay taxes where you live. If you actually move to Portugal, then the salary you will be getting has to be from Portugal as the “source” and therefor there is no “foreign income”.

So according to the document, I believe you will be at least eligible to the 20% flat tax rate… Which I believe is not bad at all…

In the other hand I am pretty sure there is not capital gain tax. At least for the first 10 years.

Actually Portugal is well known as a tax haven for Early retirement, since
a/cost of living is low
b/standard of living is pretty high
c/there is no taxation on foreign income

However, if you are working from Portugal, this will be taxed. (I guess someone said that already). This concept is called territorial taxation, as opposed to residency taxation. Full list can be found here : International taxation - Wikipedia

There are even some countries which do not know personal taxation at all. Question is if this countries are nice to live (can’t think of anyone here wanting to stay in North Korea or the Vatican :stuck_out_tongue: )

Portugal is not on that list since it is only a temporarily territorial tax.

There is some interesting informations in this reddit thread:

I guess this no tax story is indeed a fairy tale. What is not a fairy tale is that you should not pay taxes twice (double taxation treaty). Either you pay at the source (e.g. Switzerland), or you try to benefit from the flat tax rate of 20%.

If you work in CH you will have to pay tax in CH

It often is for work/employment income. You shouldn‘t expect to work in an EU country, receive income from another EU country for your work and not pay taxes on it. Legally, that is.

Different story for investment/capital income and - sometimes - retirement. I mean, even my Swiss third pillar is tax-free (prior to withdrawal), even though it’s invested in investment funds. Probably still tax-free in most other countries as well.

Note how the thread conflates two things: Thread title says „as an employee“, but then most talk going going in is about „recibos verdes“, which are (afaiu) an invoicing scheme for independent contractors self-employed.

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Best documentation I have found so far on the subject NHR: residency in Portugal for foreign nationals - live tax-free in Portugal

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