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tourists in the summer months] will often arrange to let their properties for the high season,...so covering their expenses for much of the rest of the year [i.e., the other 10 months]."
Assuming you own your house and car, you can live in relative luxury for around $HK3,500 per month [a couple without children). That budget includes eating out about twice a week (with wine) and generally not stinting on the luxuries of life. live much more cheaply if you so desired.
You could
It's likely that this cost of living will rise sharply in 1985 when Portugal introduces a value added tax (VAT--see below). Nevertheless, Portugal will remain cheap even compared to Spain, let alone other countries of Europe.
Taxation
You are deemed to be fiscally resident in Portugal if you live in Portugal for more than 183 days in any calendar year. (the fiscal year also being the calendar year). fiscally resident, you must pay Portuguese income taxes.
If you're
A Portuguese national may be required to pay tax on income derived within Portugal, even if not "fiscally resident. would not then be taxed on any income derived outside Portugal.
But he
An alien residing in Portugal--say, a retired Briton--with an annuity outside Portugal should, in theory, pay Portuguese income tax. In practice, were Portugal to attempt to tax such people, there would be a mass exodus of retirees from the Algarve. this is "you, " don't worry about Portuguese income tax.
A Portuguese national must pay income tax on world-wide income--if "fiscally resident." This is not desireable: marginal rate is currently 80%.
If
the top
The
From January 1985, Portugal's tax structure will be brought more in line with other EEC nations (a requirement of Portugal's entry into the EEC). The details will be known in December. major change will be the introduction of a value added (sales) tax. And from January, the top income tax rate could be lowered.
Doing business in Portugal
In the next five years, Portugal should be one of the faster- growing economies of Europe, due to its entry into the EEC.
Portugal is a low-cost manufacturing location for EEC and
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