In order to apply for the non-habitual resident regime, you must have the right to reside in Portugal. You must also not have been a Portuguese tax resident in the 5 years prior to your application, and have a residence in Portugal that you intend to keep and occupy as a habitual home.
What is non-habitual residency in Portugal?
Non-habitual resident (NHR) is a special status aiming to attract professionals who carry out activities with high added value or intellectual property, who are not residents of Portugal as well as individuals benefiting from pensions earned abroad.
Who qualifies for NHR in Portugal?
To qualify as a NHR, an individual must meet the following requirements: • Become tax resident under Portuguese domestic legislation; and • Not having been taxed as a Portuguese resident in the five years prior to taking up residence in Portugal.
How do I get tax residency in Portugal?
In general terms, an individual is deemed to be tax resident in Portugal if one of the following conditions is met: • more than 183 days are spent in Portugal in any 12-month period starting or ending in the fiscal year concerned; or • having spent less than 183 days in Portugal, an individual maintains a residence …
What are the benefits of NHR?
What are the benefits of the NHR Regime? The NHR regime establishes, under certain conditions, IRS exemptions on foreign source income, as well as a limited 20% taxation of income from employment and independent personal services, in both cases if deriving from listed high value-added activities.
How long can you stay in Portugal as a non resident?
You can travel to other Schengen area countries for up to 90 days in any 180-day period without a visa for purposes such as tourism. To stay longer than 90 days in any 180-day period, to work or study, or for business travel, you must meet the entry requirements set out by the country you are travelling to.
How do I apply for non-habitual residency in Portugal?
Non-habitual resident status can be requested by anyone who meets three requirements. You must live abroad, not have been a resident in Portugal within the last five years and want to move to Portugal. To be considered a resident, you must remain in Portugal for 183 days a year or have your primary home there.
How does Portugal NHR work?
Introduced in 2009 by the Portuguese government to attract ‘high value’ residents, NHR offers reduced tax rates and some exemptions for your first ten years in the country. If employed in Portugal, non-habitual residents can benefit from a flat 20% income tax rate instead of the usual scale rates reaching up to 48%.
What taxes do I pay in Portugal?
Income tax rates in Portugal
|Annual taxable income||Portugal income tax rate|
|up to €7,112||14.5%|
How do you maintain residency in Portugal?
As a general rule, an individual is qualified as a resident of Portugal if: – he is present in Portugal for more than 183 days, consecutive or otherwise, in any 12-month period starting or ending in the calendar year concerned; or – he is in Portugal for a shorter period, but he has on any day during the period …
Do expats pay taxes in Portugal?
Income tax in Portugal for expats
Portuguese residents must pay income tax on their earnings. Most of the time tax is deducted automatically from payslips, but it is still mandatory to complete an annual tax return.
How do I know if I am a tax resident?
Each country has its own definition of tax residence, yet: you will usually be considered tax-resident in the country where you spend more than 6 months a year. you will normally remain tax-resident in your home country if you spend less than 6 months a year in another EU country.
What does NHR stand for in Portugal?
The Portugal NHR tax regime (non-habitual resident) is a hugely successful scheme offering lucrative tax breaks for foreign residents. To date, over 10,000 citizens from across the world have successfully applied, helping them alleviate their tax burdens.
Can you live in Portugal tax free?
Portugal’s ‘non-habitual residents’ (NHR) scheme gives special tax benefits to new residents for their first ten years in the country. It also offers a lower income tax rate of 20% if you’re employed in Portugal in a ‘high value’ activity and allows you to receive some foreign income tax-free.
Are pensions tax free in Portugal?
Occupational pensions will be tax exempt in Portugal as long as they may not be deemed sourced from Portugal. Foreign-source income from employment (including fees of directors and entertainers or sportsmen) will not be taxed in Portugal if it is taxed (at whatever rate) in the source country.