NHR Law in Portugal: Capital Gains and Tax Benefits
Understanding Category G and Its Implications
Portugal's NHR (Non-Habitual Resident) program offers significant tax advantages, and capital gains are no exception.
Category G of the NHR law specifically includes capital gains as a category eligible for tax benefits. This means that individuals who relocate to Portugal and become tax residents under the NHR program can enjoy a favorable tax rate on capital gains realized during their NHR period.
Benefits of Category G and NHR Status
The benefits of Category G include a reduced flat tax rate of 20% on personal income, including capital gains. Additionally, NHR status offers a tax exemption on other income sources, such as dividends, interest, and rental income. These tax advantages make Portugal an attractive destination for individuals seeking to minimize their tax liabilities.
Growing Interest from the US
Portugal has been gaining popularity among US citizens looking to take advantage of the NHR program and its tax benefits. The country's favorable tax regime, combined with its attractive lifestyle and cultural offerings, makes it an appealing option for individuals considering relocation.
It's important to note that the NHR program has specific eligibility criteria and requirements. Potential applicants should carefully review the program guidelines and consult with a legal or tax professional to determine if they qualify and to understand the full implications of the program.
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