The state budget for 2020 made an important change to the regime of Non-Habitual Residents (RNH), as far as pensioners are concerned.
In fact, while previously, in relation to pensions obtained abroad, there was an exemption regime (in most cases), with the said change all pensions received abroad by Non Habitual Residents came to be taxed at the rate of 10% (cf. new wording of paragraph 12 of article 72 of the IRS Code).
This change was motivated by strong criticism from countries such as France and Sweden.
We remind you that this regime was introduced in 2009, being accessible to people of all nationalities who become resident in Portugal, aiming to attract people with high incomes to our country, namely professionals who are engaged in activities of high added value and pensioners.
The basic condition is that these people have not resided in Portugal in the last 5 years, and, after being approved, the Non Habitual Resident may benefit from this regime for a period of 10 years.
In addition to the aforementioned pensions received abroad (which will be taxed at a rate of 10%), the other income obtained abroad continues to be exempt from taxation in most situations (with certain requirements met), and, in relation to the income obtained in Portugal, they will be taxed at the rate of 20% when it comes to activities of high added value.
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