RelyOn Relocation NEWSLETTER

Portugal’s new government has indeed announced plans to reintroduce a tax break system similar to the previous NHR regime. This decision comes after the previous administration had decided to end the NHR program in 2024.
Key Points of the New Tax Break System
The new tax incentive, which is part of a package of 60 measures aimed at stimulating economic growth, will offer:
1. A 20% flat income tax rate for foreign nationals.
2. This rate will apply only to salaries and professional income.
3. The tax breaks will not be extended to wealthy expatriate retirees.
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On October 1, 2024, the Portuguese Immigration Authority launched an innovative digital platform designed to simplify the citizenship application process. This new online platform provides applicants with a streamlined way to submit and track their applications in real-time, making the path to Portuguese citizenship faster and more transparent.

For those who already hold a Portuguese residence permit, this development is especially beneficial. The online system removes traditional bureaucratic barriers and offers a clear, accessible view of each application stage, allowing applicants to stay informed about the progress of their request from start to finish.

Portugal continues to enhance its appeal as one of the most convenient and traveler-friendly destinations in Europe. Exciting news for residents, tourists, and frequent flyers: a new high-speed train now connects Lisbon and Porto airports, making travel between these two key hubs faster and easier than ever.
The high-speed train significantly reduces transit time, allowing passengers to avoid traffic and lengthy transfers. Whether you’re catching a connecting flight, traveling for business, or exploring the beauty of Portugal, this new connection ensures a smooth and hassle-free experience.
This development is part of Portugal’s ongoing efforts to modernize its infrastructure and improve accessibility, further solidifying its reputation as a global hub for travelers and expats alike.

TAP Air Portugal has been ranked as Europe’s top airline for pet travel by AirAdvisor, standing out for its pet-friendly policies and customer care. TAP offers flexible options for transporting animals in the cabin or hold, allows up to five pets per passenger, and even features a unique loyalty program, Miles&Go Pets, designed for frequent pet travelers.

The ranking, which also highlighted Aegean, Lufthansa, KLM, and SAS, considered factors like transport flexibility, health and safety requirements, and documentation processes to ensure stress-free pet travel.

Portugal has approved a significant increase in the minimum wage, raising it from €820 to €870 starting January 1, 2025.

This change directly impacts various visa and residency requirements, including those that rely on proof of income. For example, the income requirement for some visas will now be €3,480 per month (870 x 4).

The government’s new plan also includes annual wage increases of €50, with the goal of reaching a minimum wage of €1,020 by 2028.

Portugal has been selected as one of the hosts for the 2030 FIFA World Cup, a historic achievement that puts the country in the global spotlight. This event will attract billions of viewers, boost tourism, and create incredible opportunities for businesses and residents alike.

The new government has unveiled a housing strategy with 30 measures to address the housing crisis. The “Build Portugal” plan focuses on increasing housing supply, promoting public housing, and improving affordability, with deadlines ranging from ten days to three months.

Key initiatives include unlocking 25,000 homes from the Recovery and Resilience Plan and revising the Soil Law to allow rustic land for affordable housing. Young buyers under 35 will benefit from IMT and Stamp Tax exemptions on properties up to €316,000.