Tax
Residence tiers that limit foreign-source taxation for five years
Income tax is progressive to 45 per cent plus 10 per cent local inhabitant tax. A non-permanent resident is taxed on foreign-source income only to the extent remitted, for the first five of any ten years.
Key rules
- Jurisdiction — Administered by the National Tax Agency. Residence turns on domicile or one year of continuous presence.
- Deadline — Individual return between 16 February and 15 March following the tax year
- Deadline — Corporate return within two months of the fiscal year end
Governing law
- Income Tax Act
- Corporation Tax Act
- Consumption Tax Act
- Inheritance Tax Act
In practice
The non-permanent resident category applies to a foreign national resident for five years or less within the preceding ten, and confines foreign-source taxation to remitted amounts, which is a significant planning point on arrival. Corporate tax with local levies produces an effective rate near 30 per cent. Consumption tax is 10 per cent, with 8 per cent on food and certain items, and the qualified invoice system introduced in 2023 changed input-credit practice substantially. Inheritance tax reaches 55 per cent and can extend to a foreign resident's worldwide estate depending on visa category and length of stay.