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Our role is also to act as a guide for Portugal's tax and customs authorities.
Portugal considered Europe's new tax heaven
If you’re planning to live in Portugal, whether you’re retired or working, it’s a good idea to be aware of the tax rules that will apply to you. The country offers tax advantages to certain categories of foreign residents, as detailed above. When you move abroad, your tax situation may change. It is essential to know your tax situation (resident or non-resident) in the host country, in order to determine whether you are subject to local tax, to the tax system of your country or to both.
A preliminary study of your situation will be carried out by us and will be proposed to you.
A preliminary study of your situation will be carried out by us and will be proposed to you.
WHAT IS IT
Non-habitual resident status (NHR):
Created in 2009 after the economic crisis and the Troika, non-habitual resident (NHR) status applies to Portuguese nationals who wish to return to the country and to foreigners who decide to come to Portugal. This status comes with a number of tax benefits.
Find out what it is, who can benefit from it and what the advantages are.
What is non-habitual resident status?
In practice, Non-Habitual Resident status is a specific income tax regime valid for ten years.
Who can apply for this status and what are the conditions?
Portuguese nationals who were resident in another country and wish to return to Portugal, and foreign nationals who decide to live in Portugal, can apply for non-habitual resident status.
Regardless of their nationality, there are mandatory conditions for obtaining this status.
In particular:
Not to have been taxed as a tax resident in Portugal during the five years preceding the application for status.
Be registered as a tax resident in Portugal. And this is only taken into account if you stay in Portugal for more than 183 days, even if they are not followed. If you do not meet this minimum period, you must have a dwelling in Portugal that demonstrates your intention to stay in the country.
To avoid double taxation of income, it is important to apply for a certificate of tax residence.
To avoid double taxation of income, it is important to apply for a certificate of tax residence.
When to apply :
Once the compulsory conditions have been met, Non-Habitual Resident Status can be applied for as soon as you register as a tax resident or later, up to 31 March of the following year.
You then have to wait, on average, six months to find out whether the Portuguese tax authorities have granted this status.
You then have to wait, on average, six months to find out whether the Portuguese tax authorities have granted this status.
Advantages
Advantages of non-habitual resident status :
Citizens who qualify for this status will have their income taxed under a special regime for ten years. During this period, they enjoy the following tax benefits:
- Employment income earned in Portugal subject to a flat rate of 20% WHT (plus 3.5% surtax). This applies to income from high value-added activities.
- If they have income abroad – whether from salaried employment, self-employment or pensions – they will not be subject to double taxation.
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