QROPS ADVICE: Taxation for residents living in Portugal

The basis of taxation in Portugal depends on an individual’s residence status, with Portuguese residents being taxed on their
worldwide income and non-residents on their Portuguese sourced income only. An individual is determined to be resident if:
• They remain in Portugal for more than 183 days during a calendar year, or
• Regardless of the number of days spent in the country, an individual maintains a residence which pertains to be the
individual’s habitual residence as at 31 December.
All members of a family unit are considered resident if either the husband or the wife is resident for tax purposes in Portugal.
However, this condition does not apply if one of the spouses remains less than 183 days in Portugal and proves that their main
economic activities are not linked with the Portuguese territory, as described above. Should this be the case, this individual is
considered non-tax resident in Portugal while the other spouse is considered a Portuguese tax resident. This rule has recently been
introduced into Portuguese tax legislation and, as such, there is no information yet regarding the type of proof needed by the tax
authorities.
Portugal has negotiated over 52 double taxation treaties.

full details on http://www.ailo.org/common/externalPage.asp?intURL=/publications/default.asp&extURL=/downloads/Portugal_2009.pdf