TAX NEWS - January 2010

Portugal: Special tax regime for inbounds

Professional activities covered by the special tax regime for inbounds

The Portuguese Government issued the awaited Ministerial Order regarding the eligible professional activities that may benefit from the special 20% flat tax rate under the new tax regime for inbounds.


Who may benefit

Covered by this special tax regime, are highly-qualified professionals such as:
- Engineers;
- Artists;
- Auditors and tax advisers;
- Medical doctors;
- Computer programmers;
- Scientific researchers;
- Top employees of any industry.

Investors and board members are only covered under very strict conditions.

This measure may provide an opportunity to reduce costs with assignments into Portugal and with repatriations of Portuguese outbounds. Thus, we highly recommend that expatriates who are starting an assignment in Portugal or are returning to Portugal, should analyze whether they are entitled to benefit from this special rate. We will make sure to keep our readers informed in due course so they can take necessary actions in an appropriate timeframe.