Portugal’s Non-Habitual Resident regime, initiated in 2009 to attract specialised talent and high net worth individuals, has become a successful Portuguese Visa program offering lucrative tax benefits to foreign residents and investors.
Also known as the NHR regime visa, the program provides individuals who move to Portugal with tax benefits for a period of ten years, and is available to all individuals interested in becoming tax resident in Portugal.
An individual is deemed to be tax resident in Portugal if more than 183 days are spent in Portugal in any year or having spent less than 183 days in Portugal, an individual maintains a residence implying being a habitual residence in Portugal in any period within the above year.
Portugal’s double taxation treaties with participating countries facilitate this program by recognising income sourced from outside Portugal. As such countries that have a DTA with Portugal or come under the OECD Model Tax Convention may be exempt from tax.
- 10 years of tax-exemption on several types of non-Portuguese source income, such as dividends, interest, real estate income, capital gains from the disposal of real estate, royalties and other income from know-how, business and self-employment profits derived from eligible occupations
- Flat rate of 20% on Portuguese-source employment income, fees, profits and royalties if derived from eligible occupations.
- Pensions will be liable to a 10% flat tax rate in Portugal provided they are not deemed sourced from Portugal.
- Tax free on wealth to a spouse, life partner and direct descendants or ascendants.
- Residency of a white-listed, EU-member, country.
- Applicant having a registered fiscal address in Portugal
- Not be deemed Portuguese tax residents in the last 5 years;
- Has been living or intention of spending more than 183 days consecutive or not in Portugal, for a period of one fiscal year (January to December); or; has stayed for less time but has, on 31st December of the same year, a residence in Portugal in conditions that suggest an intention to maintain and occupy it as his/her residence.
- Application as a non-habitual resident, must be done until March 31st, inclusive, of the year following the one in which one became a resident in Portuguese territory.
- Approval of Portugal’s NHR Visa program is based on individual circumstances meet requirements.
Portugal currently has double taxation agreements (DTA) with approximately 78 participating countries. These international tax partnerships help harmonise tax laws, lower tax rates and/or eliminate double taxation between countries by recognising income and project financing from outside of Portugal.
Countries that have a DTA with Portugal or come under the OECD Model Tax Convention may be exempt from tax.
If considering a move or investment in Portugal we encourage you to speak to qualified professionals about the Portuguese tax system as a first step, and in advance of finalising your investment. This ensures you have clarity regarding the opportunities available to you and also the requirements expected of you on your investments.
We advise private and commercial clients in this area and happy to assist you from initial planning through to the application and approval processes.
Algeria. Andora. Austria. Bahrain. Brazil. Bulgaria. Canada. Cape Verde. Columbia. Croatia. Cuba. Cyprus. Eastern Republic of Uruguay. Estonia. Ethiopia. Finland. Germany. Greece. Guinea-Bissau. India. Indonesia. Ireland. Israel. Japan. Korea. Kuwait. Latvia. Macau. Malta. Mexico. Montenegro. Morocco. Mozambique. Norway. Oman. Pakistan. Peru. Poland. Qatar. Republic of Moldova. Romania. Russia. San Marino. São Tomé e Principe. Saudi Arabia. Senegal. Singapore. Slovak Republic. Slovenia. South Africa. Spain. Sweden. Switzerland. The Netherlands. Timor-Leste. Tunisia. Turkey. Ukraine. United Arab Emirates. United Kingdom. United States of America. Venezuela.