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You Don't Want to Retire in Portugal: Here Are Three Tax Reasons Why

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With the NHR benefit retiring and pension taxes increasing, you might rethink your retirement plans in Portugal.
The article from MSN discusses why retiring in Portugal might not be as financially advantageous as it seems, focusing on three tax-related reasons. Firstly, Portugal has recently ended its Non-Habitual Residency (NHR) tax regime, which previously offered significant tax benefits like a flat 10% tax rate on certain foreign income for new residents. This change means new retirees will not benefit from these tax breaks. Secondly, the article highlights that Portugal's personal income tax rates can be quite high, with rates reaching up to 48% for incomes over €75,000, which could significantly impact retirees with substantial pensions or other income. Lastly, the cost of living in Portugal, particularly in popular cities like Lisbon and Porto, has been rising, which, combined with the loss of tax incentives, might make the financial aspect of retiring there less appealing. The article suggests that while Portugal remains attractive for its lifestyle and climate, potential retirees should carefully consider these tax implications before deciding to move there.

Read the Full Kiplinger Article at:
[ https://www.msn.com/en-us/money/other/you-don-t-want-to-retire-in-portugal-here-are-three-tax-reasons-why/ar-AA1AyUYx ]