Portugal is studying a law for more benefits for Brazilians; comprehend.
After announcing the termination of a tax relief program, Portugal is considering closing another law that benefits Brazilians.
The Portuguese government could make life more difficult for foreign residents in the country, following the termination of a tax relief program for foreign residents from 2024.
Recently proposed budget legislation that would end the Unusual Tax Regime for Individuals, which in addition to benefiting Brazilians is a gateway to other European countries.
The final vote is scheduled for November 29 at the State Budget meeting, which will decide not only the end of the Unusual Tax Regime, but also the possible''replacing the law's stricter regime with a transitional regime for those who have already filed.
With regard to the impact on Brazilians, the Unusual Tax Regime reduces taxation, prevents double taxation of income earned in Brazil and provides a low tax rate on professional income, as well as exempting from taxation dividends received outside Portugal.
After the termination of this law, changes and withdrawal of a number of benefits are being considered that will affect not only Brazilians but also clients from the U.S., Mexico, Asia and the Middle East.
It should be noted that the Unusual Tax Regime does not affect foreigners with work visas and Brazilians who already have Unusual''tax regime.
Those who applied for the benefit this year and have already received it will be able to use it for 10 years. In the case of Brazilians who applied for the Unusual Tax Regime and have not yet received it, they will have to wait for the final vote to know how to proceed in their case. Due to delays in delivery, there is a chance that the applications will not reach the tax office in time for December 31.
The meeting will discuss the state budget proposal that will see the end of the Unusual Tax Regime, but will also look at the transitional regime. Portugal is facing a housing crisis. High property prices are criticized by the population and the government is looking for measures that''will reduce this problem.
"They believe the Unusual Tax Regime is one of the reasons for this problem because it makes it easier for foreigners to come to Portugal and buy property there.
In addition, according to most experts, this will not solve the housing problem and will deprive Portugal of a significant source of foreign investment.
Will the completion of the Unusual Tax Regime affect the visa issuance process? According to''Rubin, the end of the Unusual Tax Regime could affect visa issuance, especially for those for whom the main reason for moving to Portugal was tax relief.
Work and study visas are not linked to the Unusual Tax Regime, so should not be affected.
There could, however, be implications for the D7 visa, which is for pensioners and passive income holders, and the Digital Nomads visa, which is for remote workers, as they attract high income earners.
"I would note that the priority would probably be the D7 visa. I think that's the one that will be affected, and also the digital nomad visa, because they are given to people with greater financial capability. I think,''that this may have an impact as the D7 visa applicant is often (but not always) chasing the more favorable tax benefits under the Unusual Tax Regime,' he says.
Notwithstanding, even after the end of the Unusual Tax Regime, 'this is not a sufficient reason for a person to stop choosing Portugal' as 'many people do not see or even expect the tax benefits and they have other reasons why they want to move to Portugal'.
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