Why Some of the Lowest Tax Rates in Europe Are Beneficial for Expats and Retirees

Retirees and expatriates often seek out European countries with low tax rates, as they can significantly reduce the cost of living and increase disposable income.

Portugal: A Favorable Tax Regime for Expats

Portugal offers a Non-Habitual Resident (NHR) program, which provides significant tax advantages for expatriates. Under this scheme, qualifying individuals can benefit from a flat 20% tax rate on income earned in Portugal, while foreign-source income may be exempt from taxation for up to 10 years. This makes Portugal an attractive destination for retirees and digital nomads.

Malta: A Top Destination for Retirees

Malta offers one of the most attractive tax regimes in Europe, with a personal income tax rate capped at 35%. However, various tax rebates and incentives are available for foreigners, making it a desirable option for expats. Additionally, Malta has no inheritance tax, capital gains tax on the sale of property, or wealth taxes, which makes it especially appealing for retirees.

Accounting in the Netherlands