Portugal plans to reintroduce tax breaks for foreign residents


  • World
  • Thursday, 04 Jul 2024

FILE PHOTO: Portuguese Prime Minister Luis Montenegro stands next to Portugal's new Minister of State and Finance Joaquim Miranda Sarmento and Portugal's new Minister of State and Foreign Affairs Paulo Rangel during the swearing-in ceremony of the new government, at Ajuda Palace in Lisbon, Portugal April 2, 2024. REUTERS/Pedro Nunes/File Photo

LISBON (Reuters) - The Portuguese government is planning to reintroduce tax breaks for foreign residents in an effort to attract skilled workers despite criticism in the past that the scheme stoked housing prices, the economy minister said on Thursday.

The scheme, launched in 2009 to attract investors and professionals at a time of financial crisis, gave people who became residents by spending more than 183 days a year in Portugal a special 20% tax rate on Portuguese-sourced income derived from "high value-added activities", such as practising medicine or teaching in universities.

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