Non Habitual Resident (NHR) in Portugal
Pensioners, entrepreneurs, as well as investors or high net worth individuals can benefit from this tax regime.
The Portugal non habitual resident tax offers a lower tax rate or a total tax exemption on the personal income derived by foreign nationals.
Our Portugal immigration specialists answer some of the most common questions about this preferential tax regime below.
If you are a foreign national and wish to receive personalized information about how you will be taxed as a non habitual resident in Portugal, our team can help you with tailored services.
We can also help those who wish to first relocate to the country under a digital nomad visa.
What is the NHR Portugal regime?
A special tax regime implemented by the Government is available for foreign nationals for a period of 10 years.
The regime for non habitual residents, or the NHR Portugal regime, is available to certain categories of foreign nationals who are relocating to the country or to Portuguese nationals who are returning to their home country after a long period of living abroad.
Who qualifies for the status of non habitual resident in Portugal?
The regime is available to an individual who:
- Becomes a tax resident in Portugal under the laws in force;
- Was not considered a resident for taxation purposes in the 5 years prior to taking up the status of resident.
For the purpose of the NHR in Portugal, the following considerations are important:
- The individual has a residential accommodation in the country in any given day of the 12-month period; this is used as the habitual abode;
- An individual is a tax resident in Portugal if he spends more than 183 days in the country during a 12-month period;
- The days spent in the country can be continuous or not;
- Any day counts as a day spent in the country if the individual remains in Portugal overnight.
What is the value of the Portugal non habitual resident tax?
The preferential tax regime for qualifying foreign nationals living in the country is taxed at a special 20% flat rate when it is derived from high-value activities, artistic activities, and scientific or technical activities.
Examples of high-value activities that fall under the NHR Portugal regime include the following:
- Director/executive of a company involved in production, industry, services or business;
- IT, engineering, communication, science specialists and technicians;
- University teachers;
- Artists and journalists.
Our Portugal immigration team can give you more details if you work in any of these fields.
How do you register for the NHR status in Portugal?
Foreign nationals should know that registration as a non habitual resident and the application of the preferential income tax rate is not automatic.
An individual receives the status of a non habitual resident in Portugal when:
- He applies for a Portuguese taxpayer number;
- Registers as a tax resident;
- Applies specifically for the NHR status Portugal.
The tax authorities have the right to request additional documents in order to approve this status.
One applies for NHR Portugal until March 31st the year after taking up residency in Portugal.
What are other taxes for foreigners apart from the NHR tax in Portugal?
While the personal income tax rate can be capped at a preferential rate for a 10-year period in the case of expatriates living in the country, other taxes are also worth taking into account:
- a municipal tax of 7.5% applies for the acquisition of property;
- a non habitual resident Portugal acquiring property is also subject to stamp duty at 0.8%;
- an annual property tax with values between 0.3% and 0.45% applies.