Non habitual residency status (NHR)

Introduction to NHR

The Portuguese Non-Habitual Resident program boosts Portugal to become the best retirement haven in Europe. It is also quickly becoming a hotspot for French, British, German, and Scandinavian professionals who are looking to benefit from the reduced taxes and tax-free pensions regime that the program offers.

The NHR regime focuses on two sets of people: Retirees that are receiving pensions from overseas and Professionals that are either employed or self-employed and are willing to receive their income completely tax-free for 10 consecutive years and help the Portuguese economy.

Main advantages of the Portugal Non-Habitual Resident tax regime

Some of the most important advantages of being a non-habitual tax resident in Portugal are:

  • Benefit from a personal income tax treatment over a 10-year period
  • Enjoy a tax exemption on almost all foreign source income
  • 20% flat rate for certain Portuguese source incomes (from specific professions as well as income from self-employment), as opposed to normal Portuguese income tax rates of up to 48%
  • Become part of a white-listed tax environment within the EU
  • A tax exemption for gifts or inheritance to direct family members
  • No wealth tax
  • Free remittance of funds to Portugal

What are the requirements for obtaining it?

  • NHR is open to all individuals of high professional and cultural worth* with the right to reside in Portugal (either an EU/EEA/Swiss citizen or the holder of a residence permit)
  • The applicant not been a tax resident of the country during the previous five years
  • Registered as a Portugal tax resident and declaring such residential property to be their home

*The following professions are considered of high added value: Architects, Musicians, Tax consultants, Clinical surgeons, Dentists, Doctors, Computer consultants, Designers, Directors, Engineers, Ship’s doctors, Medical physiatrists, Psychologists, Computer programmers, Investors, Higher management, Geologists, Archaeologists, and Software consultants.

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