Moving from Spain to Portugal for tax reasons (what you need to know)

Spain and Portugal both use a 183-day rule for tax residency, but the details differ. In Spain, you are tax resident if you spend more than 183 days in the calendar year in Spanish territory (any fraction of a day counts). Your worldwide income is then taxed in Spain. In Portugal, you are tax resident if you spend more than 183 days in any 12-month period (consecutive or not) in Portugal, or if you have your habitual home there with the intention of using it as your main residence. Portuguese residents are taxed on worldwide income. Top rates: Spain up to 47% personal income tax, Portugal up to 48%; corporate tax is 25% in Spain and 21% in Portugal (mainland).

In Spain, any day (or part of a day) you are in the country counts. So 184 days in the calendar year is enough to be Spanish tax resident. Spain also looks at your centre of vital interests: if your spouse or minor children usually live in Spain, the tax authority can treat you as resident even if you do not reach 183 days. In Portugal, the 183 days can be spread over any 12-month period. Having a home in Portugal with the intention of using it as your habitual residence can be enough to be tax resident there even without 183 days.

You cease to be Spanish tax resident when you no longer meet the residency criteria. That usually means: (1) you spend fewer than 183 days in Spain in the calendar year, and (2) your centre of vital interests (habitual home, family, main economic activity) is not in Spain. Simply moving to Portugal is not enough by itself: you must actually live in Portugal (or elsewhere) and break the Spanish ties. Keeping a Spanish home, family in Spain, or running your main business from Spain can still make you Spanish tax resident. Plan the timing of your move and keep evidence of where you live and where your centre of interests is.

The NHR regime in Portugal offered reduced or exempt tax on certain foreign-source income and some Portuguese-source income for 10 years. NHR was closed to new applicants from 2024. If you already had NHR before the change, you keep it under the existing rules. If you are moving to Portugal now, you will be taxed under the standard Portuguese rules (progressive income tax up to 48%, capital gains generally included in income). Portugal still has no wealth tax and has double tax treaties with many countries, including Spain.