Portugal’s Left Bloc says that the Non-habitual Residents regime is "one of the main factors in real estate speculation" and wants changes to the tax treatment of European Union immigrants in the next State Budget.The Left Bloc also wants to see revisions to the Golden Visa tax breaks available to non-EU foreigners.
"We are going to propose the alteration of this regime in the budget negotiations," said MP Pedro Soares, arguing that the tax benefits granted to Non-habitual
Residents have been "one of the main factors that contributes to speculation in the real estate market" - and the same is true for Gold Visas.
The Bloc is challenging the Socialist government, which it is helping to support, and is well aware that other European countries, including Sweden and Finland, have made moves to see an end to the Non-habitual Residents scheme that leaves Portugal open to justifiable criticism of being ‘a tax haven within Europe.’
The Non-habitual Residents scheme enables many foreign pensioners to enjoy a tax free life when they register in Portugal and spend at least 183 days in the country.
The most unjust cases are those of pensioners coming from countries where there exists a reciprocal tax agreement. These pay no tax in their country of origin and none in Portugal.
This inequitable situation needs changing, according to the Left Bloc which already has the support of many Socialist party MPs and members of the government.
The assault has started with the Socialist MP, Luís Vilhena, asking the Minister of the Environment whether it is time to redirect the benefits that are granted under the Non-habitually Resident scheme. João Pedro Matos Fernandes was unwilling to answer the question.
