Visa Permits

NHR (Non-Habitual Resident) Visa

The Non-Habitual Resident (NHR) regime in Portugal offers advantageous tax benefits for new residents, and transitional rules allow for applications until the end of 2024 under specific conditions. Here’s a breakdown of the criteria and benefits:

 

Eligibility Criteria

To qualify under the transitional rules, you must meet one of the following criteria:

  • Portuguese Tax Resident Status by 31st December 2023.
  • You must be a tax resident in Portugal as of 31st December 2023.

Portuguese Resident Status by 31st December 2024:

  • Work Contract/Agreement: A work contract or agreement dated before 31st December 2023, with duties performed in Portugal.
  • Property Lease: A property lease signed before 10th October 2023.
  • Promissory Contract: A promissory contract for Portuguese property signed before 10th October 2023.
  • Dependant’s Education: Enrolment of a dependant in an educational institution in Portugal by 10th October 2023.
  • Residence Visa/Permit: A residence visa or permit valid until 31st December 2023.
  • Initiated Visa/Residence Process: Initiation of the visa or residence permit process before 31st December 2023.

 

Benefits of NHR Status

If you qualify and decide to apply for NHR status, you can enjoy significant tax advantages, including:

  •  0% Tax on Certain Foreign Source Income and Capital Gains: Certain types of foreign-sourced income and capital gains are not subject to Portuguese tax.
  • 10% Tax on Foreign Pension Income: Foreign pension income is taxed at a reduced rate of 10%.
  • Lower Employment and Self-Employment Tax Rates: Reduced tax rates for employment and self-employment income derived from “high value activities.”

 

Next Steps

If you are eligible under the transitional rules and are considering applying for NHR status, it may be beneficial to consult with a tax advisor or legal expert to navigate the application process and maximize the benefits available.

Current Golden Visa

For the moment it is still possible to attain a Golden Visa through the following options: The creation of 10 jobs; Minimum capital transfer of €500.000 in a qualifying venture capital fund (not real estate related), the same minimum amount for research activities conducted by public or private scientific research institutions, or forming a commercial company based on national territory with the creation of 5 permanent jobs. The applicant is required to stay in the country for only 7days in the first year and then for a period of 14 days for the subsequent years as part of the qualification for the residency permit for visa-free travel to other Schengen territories.

D2 Visa – Entrepreneurial Visa

Once the bill is published, pending Golden Visa applications and future renewals will be diverted to the D2 visa, commonly known as the entrepreneurial permit.  The entrepreneurs may apply for the D2 Visa if they start or buy a business in Portugal with no restriction on the activity.  This will allow the applicant to get a residence permit and all its benefits including the visa-free travel to other Schengen territories.

There is no limited investment threshold currently defined for the D2 Visa, although applicants must provide proof of sufficient funds to start and run their business in addition to owning or renting a property, health insurance will also be mandatory.  Applicants must be over 18 years old with no criminal record. The visa validity is for four months, in which time the applicant must enter Portugal in order to enable them to start their company and sort out their housing in order to apply for a residency permit.  The residency permit is valid for two years and can then be renewed for three years.  After five years, citizenship or permanent residence may be applied for.

Family members may immigrate to Portugal with a residence permit for family reunification, however the entrepreneur and their family members must stay in Portugal for a minimum of 6 months a year.

The above information serves merely as guidelines. For more accurate information to suit your individual work and tax situation, please contact your lawyer and qualified tax planner, who will more accurately indicate your specific requirements.

D7 Visa – Retirement or Passive Income Visa

Introduced in 2007, the D7 Visa is more commonly known as the “retirement visa” or “passive income visa”.  This visa program allows non EU, EEA and Swiss citizens to apply for temporary residency in Portugal conditioned on the applicant proving a regular passive income derived from either a pension, rentals, dividends or financial investment application of a minimum €9.120 per year, which should increase by a further 50% for your spouse and a further 30% for a child, a clean criminal record, proof of owning or renting a property long term. Spend a minimum of 16 months in Portugal during the first two year period of application (Minimum six consecutive months or eight months non-consecutive, each year). The applicant is advised to open a Portuguese bank account with a deposit of one year of the minimum passive income and secure mandatory health insurance.  Upon approval, the applicant is issued with a residency card valid for two years and then renewable for a further three years, after which citizenship may be acquired.

The above information serves merely as guidelines. For more accurate information to suit your individual work and tax situation, please contact your lawyer and qualified tax planner, who will more accurately indicate your specific requirements.

D8 Visa – Digital Nomad Visa

Introduced in 2022, the D8 visa is more commonly known as the Digital Nomad Visa or temporary visa as it defines the applicant as 100% remote worker.  There are two possibilities for this visa:

Either as a freelancer or self-employed business with the application for the visa for a period of 1 year with an option to extend for six months.  The requirement is to prove a stable income of 4 x the minimum wage (760 x 4), 3.040€ per month with minimum savings of 9.120€ if you apply with a dependent spouse/partner.  Proof of tax residency outside of Portugal. Clear criminal record.  Health insurance mandatory.

Alternatively an entry stamp visa may be granted which will be valid for four months and allow two entries to Portuguese territory, during this time a residency permit should be applied for which is valid for two years and renewable for a further three years before Citizenship may be considered.  The requirements are the same; proof of minimum stable income 3.040€ per month plus the 9.120€ in a Portuguese bank account. Proof of tax residency outside Portugal.  Clear criminal record.  Health Insurance mandatory.

The above information serves merely as guidelines. For more accurate information to suit your individual work and tax situation, please contact your lawyer and qualified tax planner, who will more accurately indicate your specific requirements.

HQA (Highly Qualified Activity) Visa

The HQA visa is more commonly known as the Hybrid start up visa.  This program is aimed at residency visas intended for highly skilled professionals willing to work in Portugal.  It is designed to fast track and prioritise residency for business professionals, SME´s, entrepreneurs and innovators.

The applicant must provide a higher education certificate, proof of work agreement or written guarantee from the Portuguese employer for a minimum term of one year and gross monthly salary must exceed 1.330€ per month. A clear criminal record and mandatory health insurance is also required.  The residency permit will be valid for two years and then can be extended for a further three years before permanent residency/citizenship can be applied for.

The above information serve merely as guidelines. For more accurate information to suit your individual work and tax situation, please contact your lawyer and qualified tax planner, who will more accurately indicate your specific requirements.

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