In an interview with the Financial Times, Finance Minister Joaquim Miranda Sarmento said that tax incentives for qualified foreigners would be reintroduced. Pensioners would be excluded.
The Government plans to reintroduce some of the tax benefits for foreign citizens that were eliminated at the end of António Costa’s government, including a IRS flat rate of 20%In an interview with the Financial Times, published on Thursday, the Finance Minister, Joaquim Miranda SarmentoThe Government confirms its intention to Encourage the entry of qualified foreigners.in areas of high added value, but points out, from now on, that pensioners Foreigners will not have any special regime.
The plan will be revealed this Thursday as part of the package of measures to stimulate the economy, Miranda Sarmento said, stressing that the objective is “attract some peopleFor the country, the flat rate of IRS will be introduced with the caution of focusing only on income from work (in a broader sense, professional income) and will not cover other income, such as capital income.
This measure “will exclude dividends, capital gains and pensions, which was a problem between Portugal and countries such as Finland or Sweden,” said Joaquim Miranda Sarmento. These northern European countries criticised Portugal because the tax “bonds” attracted retired citizens who stopped paying taxes in their countries. Initially, Portugal exempted pensions, but then a flat rate of 10% was introduced in reaction to criticism from other EU members, and capital gains were also exempted only in certain cases.
Miranda Sarmento says that the measure will be proposed in parliament and, in the absence of an absolute majority, the Government expects it to be possible with the favorable vote of other parties or, at least, with their abstention.This will attract some people. It is not enough but it is something the Government can do.”said Miranda Sarmento, who ruled out the return of “golden visas” linked to the purchase of real estate.
“We need skilled workers and economic growth.“, Miranda Sarmento concluded, indicating that the new program, if approved, will not entail any requirement for the purchase of a home. “We will have to balance” the need for economic growth with the stability of the real estate market, Miranda Sarmento stated: “obviously, if we only prioritize one side of the policy, there will be more affordable housing, but we will have less economic growth. So, we have to balance these two parts.”
Source: Observadora
