The Socialist Party wants to create a tax regime that encourages the return of emigrant pensioners to Portugal with direct effects on the IRS. The bill, already delivered to the Assembly of the Republic, proposes that only 50% of pension income be considered for IRS purposes for ten years.
Proposal applies only to the part of pensions taxed in Portugal
According to the TSF, the PS explains that the regime is exclusively aimed at the portion of pensions that are taxed in the national territory.
The objective is to create more favorable conditions for those who have worked abroad and want to return to the country.
The proposal highlights the need to guarantee “equity” between resident and non-resident pensioners.
Scheme designed to support the return to the country
Socialists argue that many Portuguese who contributed for decades outside Portugal face a high tax burden upon returning.
Reducing the IRS would, therefore, be a way to make the return more attractive for these pensioners.
The incentive would be in force for a fixed period of ten years, functioning as a stabilization measure.
PSD and CDS-PP want a similar model
In addition to the PS proposal, PSD and CDS-PP also presented an amendment to the State Budget.
The two parties suggest that the Government study a regime similar to this, aimed at all emigrants.
The intention is to create competitive conditions compared to other European countries that already offer tax benefits to those who return.
Debate now continues in Parliament
The socialist proposal will be discussed in the specialty, where adjustments may be made.
Parties must assess the budgetary impact and the regime’s compatibility with European tax rules.
According to , the Government has not yet commented on the timetable for eventual implementation.
Incentive with potential demographic impact
The return of emigrant pensioners is seen as an opportunity to reinforce aging communities, especially in the interior.
The measure can also help boost the local economy by increasing consumption and investment.
For now, Parliament will decide whether or not to move forward with this new phase of incentives for return.
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