nhr

Non-habitual Residency

Non-habitual Residency

The non-habitual program was first announced in 2009, however with its reforms, the regime offers more attractive tax incentives on personal income taxed for newly resident individuals that are not ordinarily domiciled.

The non-habitual residency regime has been granted to 23.767 individuals so far. The French run ahead with 5.896 confirmed applicants, followed by the Italians and individuals from the United Kingdom. Not too far behind are the Swedes with 2.071 new non-habitual residents in receipt of pension income into a tax-free jurisdiction, or for individuals who can benefit from the double tax treaty. These are individuals who declare their foreign income in Portugal and can also take advantage from other preferential incentives 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%.

To benefit from this tax opportunity, the individual must become a Portuguese tax resident, not having been a tax resident in Portugal in the previous five years. The status also requires a minimum stay in Portugal of 183 days per year, this beneficial residency status can be maintained for a period of 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 Martínez-Echevarría & Ferreira have outlined the NHR incentive program in the following brochure.

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