What is a non-habitual resident 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.
What is habitual residence in Portugal?
The term “habitual resident” means that you must have your “centre of interests” in Portugal. It also refers to permanence: a person who has been in Portugal for some time and intends to stay here for the foresee able future.
Can I be resident in Portugal but not tax resident?
If you are not yet tax resident in Portugal and have not been resident in any of the last five tax years, you could take advantage of the ‘non-habitual resident’ (NHR) regime. This offers new residents special tax benefits for their first ten years in the country.
How does NHR work in Portugal?
The resident-non-habitual NHR status is a fiscal regime that was created in 2009 by the Portuguese Government. It is a tax system that grants a 20% tax rate or a total exemption on the taxation of income of expatriates who choose to live in Portugal, for a period of 10 years. And this is not just about retirees !
When can you apply for NHR in Portugal?
You must apply for the NHR regime before March 31 of the tax year during which you became a tax resident in Portugal.
Is Portugal a tax haven?
Portugal has what is called a non-habitual residence (NHR) tax regime. In effect, it is a program that allows qualifying individuals the opportunity to become tax residents of a “white-listed” jurisdiction and still legally eliminate their taxes on most foreign-source income.
Who qualifies for NHR?
Who qualifies for NHR in Portugal? To qualify for NHR, you must live overseas, not have been a resident in Portugal within the last five years and want to reside in Portugal. To be considered a resident, you must remain in Portugal for 183 days a year or have your primary home there.
How long does NHR last?
The tax regime NHR in Portugal is granted for a period of 10 years non-renewable, as long as the individual continues to be considered as tax resident in Portugal during each of these 10 years.
What makes you a tax resident of Portugal?
An individual will be regarded as resident in Portugal for tax purposes, in the year or part of the year, to which the income relates to, in case the individual: spends more than 183 days – continuously or not – in the country/jurisdiction within a 12-month period, or.
What is Portugal’s non-habitual resident tax regime?
Entrepreneurs, professionals, pensioners or high net worth individuals may take advantage of Portugal’s non-habitual resident (NHR) tax regime, thereby possibly enjoying a life free of income tax.
What is the non-habitual resident program?
The Non-Habitual Resident (NHR) Portugal program is a tax regime that offers foreign residents and investors reduced tax rates and exemptions on some taxes. It was introduced in 2009 and updated in 2020. The aim is to attract foreigners to Portugal.
What is the non-habitual resident regime?
The non-habitual resident (NHR) regime is open to anyone who has the right to reside in Portugal (an EU/EEA/Swiss citizen or a holder of a residence permit) and has not been a tax resident of the country during the previous 5 years. Hence “non-habitual”, not a particularly well-chosen name. Have a question?
When to apply for the non-habitual resident program in Portugal?
After holding a place of abode, you should apply for the Non-Habitual Resident program in Portugal until the 31st of March of the next year. A reminder: Individuals who have the right to be a resident in Portugal through the Golden Visa Program can apply for the Non-Habitual Resident program.