NHR Law in Portugal: Capital Gains and Tax Benefits
Understanding Category G and Tax Implications
Capital Gains under NHR
The Non-Habitual Resident (NHR) law in Portugal explicitly includes capital gains as a category that qualifies for the NHR status under Category G. This means that individuals who establish residency in Portugal under the NHR regime may be eligible for favorable tax treatment on their capital gains.
Tax Benefits for NHR
The NHR regime offers significant tax benefits to non-habitual residents, including a flat income tax rate of 20% on certain types of income, and an exemption from taxes on certain other types of income, such as foreign pensions and dividends.
Tax Exemption for Capital Gains under Tax Treaty Rules
Under the NHR regime, a capital gain is exempt from taxation in Portugal if it is subject to taxation under a tax treaty between Portugal and the country where the gain was realized. This provision allows individuals who have capital gains from assets located in countries with which Portugal has tax treaties to minimize their tax burden.
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