Conseil juridique & fiscal

Last updated: May 2025

Relocating to Portugal involves more than choosing a home. Understanding the legal and tax environment is essential for a smooth transition and long-term success, whether you are buying property, setting up a business, or retiring.

Portugal offers a welcoming legal framework for foreign residents, attractive tax schemes for newcomers, and a stable real estate market. Here is what every future resident or investor should know.

Residency and Legal Status

All EU and EEA citizens can live, work, and buy property in Portugal with minimal paperwork. However, they must register as residents if staying more than 90 days. This is done through the local town hall (Câmara Municipal) and SEF’s successor agency, AIMA (Agência para a Imigração e Mobilidade).

For non-EU citizens, Portugal offers various visa routes, including:

• D7 Visa – Designed for retirees or individuals with passive income (such as pensions or rental income).
• D2 Visa – For entrepreneurs or freelancers who want to establish a business or work independently in Portugal.
• D8 Visa – Also known as the “Digital Nomad Visa”, this is for remote workers with high-income contracts from abroad.
• Golden Visa (ARI) – Although changes in 2023 excluded residential real estate from eligibility, investment options still include venture capital funds and cultural or scientific support.

Upon obtaining a residence permit, new residents must register for a NIF (Número de Identificação Fiscal), which is essential for tax filing, banking, and property ownership.

Taxes for New Residents

Portugal’s tax system is residency-based. Anyone spending more than 183 days per year in Portugal or maintaining a permanent home here is considered a tax resident and must declare global income.

There are several key taxes for new residents to consider:

• Personal Income Tax (IRS) – Progressive rates ranging from 14.5% to 48%.
• Social Security Contributions – Required if working or running a business in Portugal, unless exempt through bilateral agreements.
• Wealth Tax – Portugal does not have a general wealth tax, but high-value real estate may incur an additional stamp duty (AIMI).

The Non-Habitual Resident (NHR) Regime

Portugal’s popular Non-Habitual Resident (NHR) tax scheme was closed to new applicants after 31 December 2023. However, certain individuals (such as those who initiated the visa process before the cutoff) may still qualify under transitional rules. The Portuguese government is expected to introduce a new scheme targeting skilled professionals and researchers.

Real Estate Taxes

• IMT (Property Transfer Tax) – A variable tax depending on the property value and whether it is a primary or secondary residence.
• Stamp Duty (Imposto de Selo) – Charged at 0.8% of the purchase price.
• IMI (Municipal Property Tax) – An annual tax ranging from 0.3% to 0.45%, based on the taxable value (VPT) of the property.

There is no capital gains tax on the sale of a primary residence if the proceeds are reinvested into another primary residence in Portugal or the EU/EEA.

Banking and Legal Services

Opening a Portuguese bank account is a necessary step for most property transactions and visa applications. It requires a valid passport, proof of address, and a NIF. Most banks offer services in English and online banking.

Legal support is strongly recommended when purchasing property. A lawyer can assist with:

• Title searches and due diligence
• Drafting or reviewing the Promissory Contract (Contrato de Promessa de Compra e Venda)
• Ensuring compliance with municipal regulations
• Representing buyers with power of attorney, if necessary