There is a great demand to invest in the island of Madeira, it offers a temperate climate all year round and is considered one of the safest islands in the world. Madeira has and is much sought after by people of various nationalities and also investors, main will be English, German, French, eastern countries such as Ukraine, Russia, Poland and northern Europe.
The island of Madeira has received several distinctions by the World Tourism Bodies and has already been considered the Best Island Destination in the World in 2015, 2016, 2017, 2019, 2020, and 2022 and Euopa 2013, 2014, 2016, 2017, 2018 and 2019.
Portugal has what is called the non-habitual resident tax regime (NHR). In effect, it is a program that allows qualified individuals the opportunity to become tax residents of a "whitelisted" jurisdiction and still legally eliminate their taxes on most foreign-sourced income.
The tax residency is valid for 10 years and does not come with the typical obligation that you visit or live in Portugal part of the year to maintain your resident status there.
The biggest attraction of the program is the opportunity to reduce your income tax to zero.
This is possible, in part, due to Portugal's 71 double taxation treaties. According to the regime, as long as the country of origin of your income has the power to tax your income (regardless of whether or not they apply the tax), Portugal will not tax your income of foreign origin.
The list of sources of income that will not be taxed under this structure includes foreign-sourced self-employment, royalties, skilled occupations, occupational pensions, capital gains, and investments or rental income.
It is important to note that capital gains from the sale of securities will be taxed, as will income from a blacklisted tax haven that does not have a double taxation treaty with Portugal.
Finally, if you have income from Portugal, it will be taxed at a flat rate of 20%.
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