Only 27% of non-habitual resident (NHR) wealthy expats in Portugal have structured their tax and financial future beyond 10 years a survey by the World Digital Foundation has revealed.
This means thousands of expats living in Portugal could be caught out by the soon-to-be scrapped NHR tax regime.
On 10 October 2023 the Portuguese government released its first draft review on how it will look to end the NHR tax regime in 2024.
It suggested that new applicants need to apply before 31 December 2023 and complete the application by 31 March 2024.
While current affluent expats with NHR tax status will keep their benefits for their entire 10-year term, they are being urged to plan for the end of that period to avoid progressive tax rates.
For more on this topic, visit: Portugal set to u-turn on golden visa axe?
David Vacani chief executive of Beacon Global Wealth Management and chairman of FEIFA, said: “Many affluent expats are too busy enjoying the fabulous lifestyle Portugal offers that they forget to plan ahead.
“We have always advised people that it’s never too early to start looking at what happens after the 10-year perks expire.
“If you take action within the first two to three years, you can end up paying a much lower tax rate over a prolonged period of time.
“Even if you are entering the last years of the NHR tax scheme, you still have time to take steps – but we would strongly advise you act sooner rather than later.”
