The government voted in favour of discontinuing the NHR scheme from the start of 2024. Therefore any one seeking this tax regime will not be able too. There has been a special privsions set up, until the end of 2024 for those who become tax residents during 2024, as long as the meet specific criteria. Namely having contracts for employment, or property transactions agreed by certain dates of 2023.
The NHR tax regime was first introduced in 2009 as a clever way for the Portuguese government to entice high net worth individuals and those of high cultural and economic worth to Portugal. A move that has seen substantial returns for the country, albeit with some kick back from countries who wish to retain their residents tax flow. Presently there over 10,000 non habitual tax residents in Portugal.
To qualify for the NHR tax regime you must comply with the following:
There are a number of great tax incentives non habitual tax residents in Portugal:
The double taxation treaty effectively allows the income earned by an individual to not be, as the name would suggest, double taxed. Most countries allow for non residents to pay their taxes in there country of residence, as Portugal does also. Potugal has a signed Double Taxation agreement with more than 70 different countries throughout the world, meaning those moving for the non habitual tax regime can do so with assurity that they will indeed be only subjeted to the preferential tax rates of the non habitual regime.
For example, if you own a rental property in the UK, the income would only be taxed here in Portugal not in the UK. Effectively allowing the rental income to be tax free for 10 years.
You can see the list of countries currently with a double tax treaty agreement with Portugal at the financas website here - Double Taxation Agreements (DTA) signed by Portugal
A list of the qualifying high cultural and economic worth can be found below. Those in these fields are elegible for tax exemptions on income derived from their occupations as they're deemed to be adding great value to Portugal.
|Theater, ballet, cinema, radio, television artists
|Biologists and life science experts
|Computer consultants and related services
|Other information and service activities
|Scientific research and development
|Research and experimental development on natural sciences and engineering
|Research and development in biotechnology
We're happy to help connect you with a lawyer/accountant who will be able to assist with the application for the NHR regime, if you're buying a property here in the Algarve then it may well make sense to have your lawyer arrange this for you as they will already be in possession of most of the required documentation and of course, would likley offer a discounted price along with the property purchase.
What you'll need for the application is detailed below:
Although the process is fairly straight forward, most will appoint an accountant to process the NHR application on their behalf.
We're happy to help with your NHR application, or point you in the direction of a professional accountant or lawyer that can help. We have a substantial amount of experience in this area and will be happy to chat through the various options, at least in principal, with you to find the most advantageous solution for your personal circumstance.