Patrick M. Says:
What are the physical presence requirements to become a tax resident in Portugal or Greece?
IL Chief Global Diversification Expert Ted Baumann Says:
Hi Patrick,
Every country has its own rules for residence for taxation purposes. If you spend a certain number of days in the country, you qualify as a tax resident and are subject to income tax.
For Portugal, if you live in the country for 183 days or more in a 12-month period, you’re considered a tax resident and will be subject to income tax.
You could also qualify as a tax resident if you have a permanent home in Portugal that you intend to keep and occupy. That applies even if you spend less than 183 days there.
However, if you haven’t been a tax resident in Portugal for the previous five years, you can apply for non-habitual residency (NHR) status. This qualifies you for reduced income tax rates and exempts you from tax on foreign income.
Greece also considers you a tax resident if you spend 183 days in the country. Like Portugal, you can also trigger tax resident status if your principal residence or “center of living interest” is in Greece.
I’m not aware of any non-habitual residence rate concessions for Greece, but non-Greek tax residents are only taxed on income generated within Greece, not that earned abroad.
A handy source of information on tax residence and other matters in the EU, as well as other OECD countries, can be found here.
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