Emigrants returning to Portugal from next year will only pay half of the IRS, according to a draft version of the 2019 Budget proposal.
The measure, which is part of a preliminary draft of the State Budget for 2019 (OE2019) that has been debated today in the Council of Ministers, is the fulfillment of the promise made by the prime minister in the summer.
“In the next State Budget we will propose that all those who want to return, young or younger, more qualified or less qualified, but have left in recent years and want to return between 2019 and 2020 to Portugal, stay, for three to five years , to pay half of the IRS fee they would pay and could fully deduct the costs of resettlement, “said the Prime Minister and Socialist leader in Caminha at the PS’s” Summer Party. ”
The version of the OE2019 proposal now comes to realize the necessary conditions to be able to accede to this regime. Accordingly, only taxpayers who are considered residents of Portugal between January 1, 2019 and December 31, 2020, may not benefit from the tax relief, have not been considered resident in Portugal in any of the “previous three years”, that is, between 2016 2018 and “have been resident in Portuguese territory” before 2016.
After acceding to this new regime, the taxation of only 50% of the income obtained will only be maintained for the income obtained between 2019 and 2023.
Also, the monthly withholding rates for these revenues should be considered at 50%, according to the Budget proposal.
The Government approved today the proposal of OE2019, the report and the Great Options of the Plan and the Multi-Year Budgetary Programming Framework, the official source of the official said.
The document will be delivered to parliament on Monday.