PIGS . That has been for years the term with which the countries of the North have baptized the countries of the South in Europe for many years. It is not that they have stopped doing it now but that those countries are seeing how those in the South threaten to dominate the entire adult sector . Because retirees of gold look to the South. And they do not do it only by sun, or gastronomy ... but for money. In Portugal, they pay very little tax, if they pay and live in Spain they are cheap.
In its last report, the Bible to choose a golden retreat, International Living showed evidence: Portugal (7th) and Spain (9th) are the countries in Europe preferred by retirees to retire. Costa Rica, Mexico, Panama lead the destinations.
The big surprise, or not so much, is still Portugal, which has not only surprised Europe with a left-wing government that cleans up the accounts, now its battle is to attract retirees. Since 2009, Portugal offers unparalleled conditions for foreign retirees. Those pensioners who are granted the status of habitual non-residents will be exempt from paying the income tax in Portugal for a period of 10 years. Nor will they have to pay taxes on wealthduring that period. The undisguised objective of the Government is to turn your country into the Florida of Europe.
The first ones to raise the alarm were the Nordic countries . They accept that retirees go to southern Europe for food, sun and beaches, but that they do so to avoid paying taxes irritates them greatly. Finland has announced that it wants to end the tax convention (avoids double taxation) that it still has with the Iberian country, which is an important problem for the Portuguese Finance Minister, Mario Centeno , who currently chairs the Eurogroup, as revealed by Bloomberg.
This measure, which has gone unnoticed for years , is now beginning to raise controversy in the Nordic countries, which see retirees with higher incomes leave to southern Europe to live a golden retirement, generating wealth outside their country originally. Portugal has a flat tax or flat tax of 20% for skilled workers, which is an incentive for the arrival of talent to the Portuguese country.
It's not just about money. Large golf courses , 300 sunny days a year and a wide coastline also help explain the success of the program, which had attracted 10,684 foreigners until the end of 2016, according to the Ministry of Finance of Portugal.
The growing success of the program highlights the fundamental difference in the way in which EU states assume social security. The Nordic countries, with generous welfare policies, allow citizens to make deductions from their contributions during their working life, but tax heavily the income after their retirement . In southern countries such as Portugal, such deductions are only viable for the minority that has private pension systems.
"It is a matter of equal treatment for all pensions paid by the Finnish retirement system," says Finance Minister Petteri Orpo . His Swedish colleague, Magdalena Andersson, expressed similar criticisms last year, after stating that the citizens of his country were free to move to Portugal to enjoy the weather, wine or even music, but not to avoid paying taxes.
According to the Portuguese Government data for 2017, in this last year the number of foreigners who have requested non-habitual residence in the country has increased by 45%. According to the Portuguese INE , 90% of those who buy a Portuguese house to obtain a community visa are Chinese , while the non-habitual residents are European, mainly French, German and Nordic.
As for Spain, the Eurostat index reflects that the number of Britons of retirement age in Spain has doubled in just one decade. Andalusia, Valencia and the islands, with concentrations in Alicante and Malaga, are the favorite destinations. International Living emphasizes that one of the fundamental reasons is also economic (not to mention the health reasons).
"A couple can live well in Spain for only about 1,800 euros a month , even less if they own their home." The magazine stands out the price of the menus, cheap for its quality, the drinks, the climate and its diversity.
For the second quarter of 2018, it is expected that in Spain the growth in the number of international tourists and associated total spending will continue, according to TourSpain . It is estimated that arrivals will grow around 2.2% and total spending around 4.4%, surpassing the figures of 23 million tourists, and 23,500 million of spending. And a fact draws attention. The Nordic market is the one with the most positive momentum, with growth in all the indicators analyzed, arrivals, overnight stays and expenses. Yes, maybe they have reasons to get upset.
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