Selling Portugal as a "fiscal Eldorado" or "Florida of Europe" will be more difficult. Foreign retirees who join the non-habitual resident regime (NHR) in the future should lose the tax exemption and double non-taxation and will have to pay a tax rate of 10% with a minimum tax of 7,500 € per year, according to sources close to the government. For several weeks, NHR status specialists have been agitating to find out whether the famous tax system will be abolished or modified for foreign retirees. The subject is advancing because today it is a clear proposal from the PS which will be debated as part of the 2020 State Budget. A tax rate of 10% with a minimum amount of € 7,500 in taxes to be paid per year : this is the PS's proposal for the 2020 State Budget. Lisbob, the expatriate assistant in Portugal, tells you all about the new NHR status.

Some will still say "fake news" but it is something that is approaching: the end of NHR status as we know it. Indeed, the Portuguese government has decided to go ahead and propose changes to the NHR tax regime which grants total tax exemption for 10 years to foreign retirees. It’s the Jornal de Negocios that headlines it today. They say the government is preparing a minimum tax rate on foreign pension income, but will not change the conditions for current beneficiaries. Lisbob, the expatriate assistant in Portugal, offers you the translation of this article from Jornal de Negocios.