Portuguese Golden Visa and Non-habitual Residents Regime

Resolution for the Conflict of Double Residence in Brazil and Portugal in Order to Determine the Jurisdiction to Tax Personal Income

Abstract

This article analyzes the implications of Brazilians change of residence to Portugal by opting for Golden Visa and Non-habitual Residents Portuguese regimes, especially those owing to the possibility of characterization of a dual residence for tax purposes, pointing out the cases in which a dual residence would be verified and the appropriate precautions to avoid it. It examines the characteristics of Non-habitual Residents Portuguese regime in order to identify the risk of its framing as a privileged tax regime. In fact, Brazilian Law No 12,249/2010 provides in its article 27 that a change of residence to a jurisdiction that establishes a privileged tax regime will be recognized from the time that the taxpayer proves to be resident in effect in the country or if it is proved that the jurisdiction taxes the integrality of a person’s work and capital income. Finally, it indicates the effects of the Treaty for the avoidance of double taxation entered into by Brazil and Portugal, in particular the conventional criteria for the identification of tax residence.