You can move to Portugal on a retirement visa and live there six months a year, with a tax-free exemption for 10 years. That means no tax on your worldwide pension or company dividends.
The Non-Habitual Residence programme
The Non-Habitual Residence (NHR) programme offers people a 10-year tax break on qualifying foreign income if they move their residence to Portugal. Qualifying income includes pensions, dividends, royalties and interest. Also, Portugal doesn’t have an inheritance tax regime, so all your assets can be passed down to your family tax-free upon your death.
The definition of retirement is quite loose in that you only need to ensure you’re not being employed in Portugal. As a consequence, it’s possible to keep business interests in South Africa.
The opportunity for South Africans
At retirement age (when you’re no longer beholden to an employer), you can:
- Live in the sun for six months a year
- Not pay Portuguese tax on any pension, dividend or annuity income
- Be close to your children and grandchildren in the UK
- Get Portuguese nationality (and a passport) after six years for you and your spouse
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