Portuguese Non-Habitual Residents (NHR) Regime;
The Law no. 249/2009 of September 23, created the tax regime of the non-habitual resident regarding the Personal Income Tax (IRS), with the goal to attract to Portugal non-resident professionals qualified in activities considered high added value or intellectual property, industrial or know-how, as well as beneficiaries of pensions obtained abroad.
Who may apply to be a non-habitual resident?
– has not been considered as tax resident in Portugal in any of the five years preceding the year in respect of which he intends to start taxation as a non-habitual resident;
– is considered for tax purposes resident in Portuguese territory in the year in which he intends to start taxation as a non-habitual resident;
When is the deadline?
– The application for registration as a non-habitual resident, must be made until March 31 inclusive of the year following the one he became a tax resident in Portugal.
What are the advantages?
– The citizen who is considered a non-habitual resident acquires the right to be taxed as such for a period of 10 consecutive years from the year inclusive of his registration as a tax resident in Portugal, provided that in each of those 10 years he is considered resident for tax purpose;
– Taxation, over a period of 10 years, at a fixed income tax rate of 20% on income considered obtained in Portugal (it is necessary to proof that the income is generated through a high added value activity);
– The absence of double taxation in the case of pension income and dependent and independent work abroad.