nhr

Non-habitual Residency

Non-habitual Residency

The non-habitual program was first announced in 2009, however its recent reforms has made the regime a far more attractive tax incentive on personal income taxed for newly resident individuals that are not ordinarily domiciled.

The non-habitual resident regime is a giant leap forward in attracting individuals in receipt of pension income into a tax free jurisdiction, for those who can benefit from the double tax treaty. Individuals who declare their foreign income in Portugal can also take advantage from the preferential regime such as business and professional income, interest, and dividends.  This attractive tax incentive covers income deriving from high value-added activities, benefiting from an exceptional tax rate of 20%.

The requisite 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 can be maintained for 10 years.


NHR Conditions
Below is a detailed outline from the Portuguese Inland Revenue explaining the conditions, who benefits and how to go about this reform.
 
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TAX REGIME

Worldwide law firm Martinez Enchavarria have outlined the NHR incentive program in the following brochure.

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