Low-tax scheme launched during financial crisis has stoked housing inflation that has drawn protests across country

Tax breaks for foreign residents in Portugal are “no longer justified”, the prime minister, Antonio Costa, has declared, promising to close the scheme for new applicants in 2024 after it stoked housing prices in one of western Europe’s poorest nations.

Launched in 2009, the scheme allows people who become residents by spending more than 183 days a year in the country to benefit from a special 20% tax rate on Portuguese-sourced income derived from “high value-added activities“”, such as doctors and university teachers.

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Source: The Guardian