Portugal is abolishing tax benefits for foreign residents amid the crisis in the real estate market.

Foreign residents in Portugal will no longer benefit from tax incentives, announced Portuguese Prime Minister António Costa. He promised to close the program to new applicants by 2024.

This decision was made in response to the rising housing prices in Portugal, one of the poorest countries in Western Europe. The program, launched in 2009, allows those who spend more than 183 days a year in the country and become residents to benefit from a special tax rate of 20% on income from sources in Portugal related to "highly valued activities," such as doctors and university professors.

This scheme was introduced to attract investors and specialists, as Portugal was suffering from a financial crisis. Other benefits of this program, known as "Non-Habitual Resident," include tax exemptions on almost all foreign income if it is taxed in the country of origin, as well as a fixed tax rate of 10% on foreign pensions.