Government wants to end tax exemption for foreign pensioners

  • ECO News
  • 20 January 2020

Under study is the implementation of two levels of taxation according to the pension income received by foreign pensioners.

António Costa’s government is expected to move forward in this State Budget with a proposal for an amendment ending the tax exemption for foreign pensioners.

At stake is the regime for non-habitual residents, that was created in 2009 and allows foreign retirees not to be taxed either in their country of origin or in Portugal. The government is expected to implement two levels of income taxation, according to Correio da Manhã.

The Executive is considering implementing two levels of taxation according to the pension income received. The figures are being analysed by the state.

The revision of the regime for non-habitual residents is a measure long advocated by the Left Bloc. So far the main beneficiaries of these measures are French pensioners.

According to data from the Correio da Manhã, of the 29,901 non-habitual residents in Portugal, only 7% are active in the country until March 2019.