Economics
Portugal Is Luring Rich Pensioners With Tax Breaks
- Sweden, Finland could halt tax treaties on Portugal incentives
- North/South divide shows EU discrepancies on social security
People on the beach at Praia da Rainha in Cascais.
Photographer: Horacio Villalobos/Corbis News via Getty Images
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After a lifetime of long Swedish winters and hefty tax bills, Dan Wikstrom’s dream of a comfortable retirement in the sun has come true. Not in a Caribbean tax haven, but in Portugal, a far more convenient four-hour flight away.
The 63-year-old former executive is among a growing number of northern Europeans lured south by a flat income tax rate of 20 percent and 10 years of tax-free pension payments. For Wikstrom that means doubling his retirement income, to around $12,000 per month.