Non-Habitual Residency

The Non-Habitual Resident (NHR) tax regime was designed to encourage entrepreneurs, investors, high net worth individuals and specialised professionals to take up residency in Portugal.

In order to qualify as an NHR, one must be physically present in Portugal for more than 183 days in a calendar year; or prove that he/she has a permanent residence in Portugal on December 31st of that particular year.

Once an individual obtains NHR status then he or she will benefit from the special Personal Income Tax (PIT) regime for a ten-year period. During this period NHRs are eligible for special income tax rates on Portuguese and foreign-sourced income.

The NHR rate of taxation is 20% for both employed and self-employed individuals. The taxation covers income of those working in highly skilled fields such as:

  • Directors, managers & investors
  • Engineers & architects
  • Actors, musicians & fine artists
  • Doctors, dentists & psychiatrists
  • Auditors
  • Teachers

 

Benefits

  • 20% tax rate on Portuguese-sourced income
  • Zero tax on most foreign-sourced income, including salaries, real estate income, capital gains, interest and others
  • Applicable for up to 10 years

 

Requirements

  • Qualify as a Tax Resident by spending 183 days or more in Portugal within a calendar year; or having a permanent residence in Portugal on December 31st within that particular year
  • Not have been resident in Portugal in the previous 5-year period

For information on the Non-Habitual Resident Tax Regime and details on how it could benefit you please contact us.

 

Please refer for more details to official NHR brochure here.