An annual income of 75 thousand euros earned by a former resident (emigrant for example) can pay 7814 euros to IRS until 2023. The amount is much lower compared to the
13 350 euros that would be paid through the Non-Resident Resident (NHR) scheme, but quadrupled after that period.
An emigrant who returns to Portugal next year and opts for the new tax system that the government has created to attract those who leave the country pays half or only one third of the IRS who would pay to join the RNH regime. to close. But this tax benefit is only valid for the first five years. As soon as this deadline has expired, the RNH becomes cheaper and ultimately the ten-year period will win.
The new scheme for former residents will run until 2023 and the opportunity to become a member is only opened in 2019 and 2020. In practice, this means that it will only be possible to enjoy this tax reduction for four or a maximum of five years. – in which only 50% of the labor income is taxed. That is, half of the time period (10 years) considered in RNH, in which all income is considered, but subject to an IRS percentage of 20%.
These assumptions mean that, according to EY simulations for Vivo, an employee who earns 75,000 euros a year pays 7814 euros from the IRS through the regime for former residents and 13,500 euros in RNH. This saving is more relevant if the annual income amounts to 46 thousand euros (with the IRS to add 3921 euros compared to 8188 euros) or 25 thousand euros (1328 euros against 4450 euros).
The values are significantly reversed once the five years of the emigrant regime have been exhausted and the IRS has the & # 39; normal & # 39; formula – with all income being considered and framed in the seven income classes that are part of the IRS and the latter is subject to a rate of 48%. Returning to the simulations, from 2024, the former resident who earns 75,000 euros per year and who has paid the aforementioned 7814 euros for five years, will quadruple the annual tax bill to 24,080 euros. The same applies to income of the order of 46 thousand euros, in which the IRS shoots to the 12 466 euros; or 25 thousand euros in income, whereby the tax is increased to 4 805 euros.
These accounts, which take into account the gross income and assume that the former resident benefits from the totality of the specific discounts or social security discounts, even if only half of his income is taken into account, show that after 10 years, the total tax bill is only cheaper for the former residents when the earned income is lower.
Everybody who is on the level of 75,000 euros per year, after 10 years, has paid 133 500 euros to IRS if he falls within the rules of the RNH and 159,474 euros if he has benefited from the scheme for former residents who were not in the period the country lived the crisis. If you win 25,000 euros, you will have a cumulative amount of 44,500 euros IRS in the RNH and 30,668 euros in the other regime.