The Portuguese non-habitual residence program (NHR) is a special tax status that offers special tax treatment to non-residents who would like to establish permanent or temporary residence in Portugal. The special status can be enjoyed for a maximum of 10 years.A special tax regime for new residents allows pensioners, high networth individuals and entrepreneurs to benefit from an attractive tax regime.

Key advantages of applying for Portugal NHR status:

  • Benefit from a special personal income tax treatment over a 10-year period
  • Enjoy tax exemption on almost all foreign source income
  • 20% flat rate for certain Portuguese source incomes (from specific professions and from self-employment), as opposed to normal Portuguese income tax rates of up to 48%
  • No minimum stay requirement
  • Become part of a white-listed tax environment within the EU
  • A tax exemption for gifts or inheritance to direct family members
  • No wealth tax
  • Free remittance of funds to Portugal

The sole requirement to benefit from this preferential treatment is to become a Portuguese tax resident, not having been a tax resident in Portugal in the previous five years. This status is granted for 10 years.

Who can apply for the NHR tax regime in Portugal?

NHR regime focuses on two sets of people: Retirees that are receiving pensions from overseas and Professionals that are either employed or self-employed, that are willing to receive their income completely tax-free for 10 consecutive years and help the Portuguese economy.

Professions of high cultural and economic worth are given generous tax exemptions under the NHR tax regime, as they are considered to be of added value to Portugal.
The following professions are considered of high added value: Architects, Musicians, Tax consultants, Clinical surgeons, Dentists, Doctors, Computer consultants, Designers, Directors, Engineers, Ship’s doctors, Medical physiatrists, Psychologists, Computer programmers, Investors, Higher management, Geologists, Archaeologists, and Software consultants.

In order to qualify for the NHR regime, applicants must fulfill the following requirements:

  • Have the right to reside in Portugal either by being an EU/EEA/Swiss citizen, or through schemes such as the Golden Visa program
  • Not have been a Portuguese tax resident in the five years prior to taking up residence in Portugal
  • Stay in Portugal for more than 183 days in a 12-month period
  • Have your habitual abode in Portugal, which can be proved by either
    • Having proof of a long-term rental agreement covering at least a 12 month period
    • Own a Portuguese home under the presumption that you intend to occupy it as your habitual abode
  • On December 31st of any year, be a crew member of a ship or aircraft operated by a Portuguese resident
  • Performing public functions abroad on behalf of the Portuguese state

Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Individuals should seek personalised advice.

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