The Non-Habitual Residents Tax Regime (NHR)

By admin admin

July 5, 2022

New residents in Portugal can benefit from the Non-Habitual Resident Status (RNH) and thusbenefit from tax exemption or loss from a series of taxes in Portugal.

• The requirements for getting the benefits are to become a Portuguese tax residente andkeep it during the relevant fiscal year and not have been a Portuguese tax resident in the 5 year period preceeding the request.

• The NHR status is granted for a period of 10 consecutive years, non-renewable.

• Once granted, the holder of the NHR status acquires the right to be taxed according to theNon-Habitual Resident tax regime.

• After the 10-year period, the taxpayer will be taxed under the general rules of the PersonalIncome Tax Code.

• The taxation of income obtained by non-regular residentes can be of:

– Portuguese source income: Net income of category A (employment) and B (self-employment) obtained from the high added value activities, of scientific, artistic ortechnical nature, by non-regular residents on Portuguese territory are taxed at thespecialrate of 20%, in case the aggregation option is not exercised.

– Foreign income from employment, Self Employment, Capital Income, Real StateIncome, Increase in Wealth, pensions, Other income obtained abroad. In these cases will be applied the conditions of the elimination of international juridical double taxationusing the exemption method.