Seniors flock to Portugal to escape tax

More and more Flemings are emigrating to Portugal on their retirement.  The seniors are enticed by the many marvels the country has to offer, but also by a new government measure that means that EU citizens who take their domicile in Portugal hardly pay any tax!

The sun shines hotter, the food is interesting, it’s pretty safe and real estate is relatively cheap and there’s a tax advantage too as VRT’s José Da Silva explains: “EU citizens who emigrate to Portugal for good pay little tax.  There’s a treaty that stipulates that you hardly pay any take if you move your official residence to Portugal”.

The Portuguese government has taken the measure to attract wealthy seniors. José Da Silva: “They pay little tax, but purchase real estate, eat out and buy cars stimulating the local economy.”

The Algarve, the Lisbon area and Oporto are the hotspots.

The influx of yet more seniors isn’t a godsend for all.  House prices have risen as a result to the anger of local people, but there is more.  José Da Silva: “Portuguese people feel they are being discriminated.  They do pay tax on their pension that is usually lower, while affluent north Europeans don’t.”