Individuals may benefit from the Non-Habitual Residency (NHR) tax regime if they transfer their residency to Portugal. It provides a total exemption of income or taxation at significantly lower rates than other European countries.
A great place for you as an individual or as a family.
Advantages of the NHR tax regime
- For ten years, the taxation on income obtained from a Portuguese source is at a fixed rate of 20% (personal income tax), if derived from a high- value-added activity;
- For pension incomes, or employment and self-employment income obtained abroad, there is no double taxation;
- The possibility to pass on wealth or estate without inheritance or gift taxes.
You can read more about NHR advantages here.
How to become a Non Habitual Resident in Portugal
- You must not have been a resident in Portugal for the previous five years;
- You must register at the local tax office as a tax resident in Portugal;
- Request enrolment as a Non Habitual Resident electronically.
High- value-added activities include artists, engineers, journalists, auditors, IT specialists, doctors, tax consultants, board members and senior managers of companies, and more.
The NHR status may be granted for ten years, and the application for NHR must be filed with the Portuguese tax authorities before the 31st of March the year after settling in Portugal.