Chloé Lagadou / Photo credits: Arnaud BERTRANDE / ONLY WORLD / Only France via AFP 07:45, April 14, 2023

Since 2009, foreign expatriates in Portugal have enjoyed a tax exemption for ten years. Therefore, the country is a popular destination for French retirees. But once the deadline has passed, is it better to go back to France or pay Portuguese tax?

To take full advantage of their pensions, nearly a million French seniors decide to move abroad. Portugal is among the top 3 coveted destinations for departure. Since 2009, foreign expatriates in Portugal have enjoyed a tax exemption for ten years. But once the deadline has passed, is it better to go back to France or pay Portuguese tax?

An advantageous cost of living

Arriving in Portugal in 2014, Victor only has two years left before he starts paying his taxes. Nevertheless, when this retiree does his accounts, he does not plan to return to France.

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"The cost of living is still interesting. Shopping at the supermarket is 30% cheaper than in France so it compensates, "says Victor at the microphone of Europe 1.

"The situation of the France does not encourage to return"

At the end of his exemption, Daniel will return to France. According to his calculations, he will not pay income tax, unlike Portugal. "It's not complicated. I receive about 2,000 euros of pension per month. And if I stay here fiscally, I will pay €5,000 per year in taxes," he said.

This reflection does not surprise Lise Bringer, real estate agent in Lisbon: "People look a little at their tax situation. We often value their property. It is a whole set of elements that will help for decision-making. We are also told that the situation of the France does not encourage people to return."

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The economic and social situation of the France worries these pensioners. Thus, some move to Tunisia to continue saving their money.