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Spain Benefits from Portugal's Decision to Eliminate the NHR Tax System

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Spain Benefits from Portugal's Decision to Eliminate the NHR Tax System
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According to EU Helpers, Portugal's government said earlier this month that it will do away with the NHR tax scheme, which gives foreigners a ten-year benefit of lower income tax rates.

Portugal's government closed the NHS tax scheme as part of its efforts to stimulate the housing market. Real estate consulting and valuation firms, however, do not think it will be enough to address the nation's housing issue.

As soon as it realized it had lost a very competitive rival, Spain used the incident to promote its program, which is identical to the Portuguese one, according to Jorge Bota, President of the Association of Real Estate Consulting and Valuation Companies (ACAI).

According to Portugal News, he doesn't think it will be a solution to the country's housing crisis.

According to a World Digital Foundation survey, just 27% of wealthy foreign nationals who are non-habitual residents (NHR) in this country have planned their financial and tax futures more than 10 years out.

These figures suggest that many foreign residents of Portugal may be unintentionally affected by the NHS tax regime's impending repeal in 2019.

According to a recent article in Portugal News, a Swiss developer who had intended to invest more than €100 million in Lisbon chose to shelve the project after Portuguese Prime Minister Antonio Costa reaffirmed the decision.

As stated by Jornal Economico, the project in question involved 150 residential apartments for Portuguese middle-class and upper-middle-class individuals in the heart of Lisbon, according to Pedro Vicente, CEO of the Overseas developer.

According to Portugal news, José Cardoso Botelho, CEO of developer Vanguard Properties, said that the country would lose tax revenue and investors would leave the Portuguese market if non-habitual inhabitants were removed.

Authorities in Portugal announced the end of this program along with the introduction of an alternative NHR tax system for scientific research and innovation that would be available to a variety of professions starting next year.


 

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