July 12, 2013

Portugal's Tax Regime for non-habitual residents (NHR)



The NHR, created by Decree-law 249/2009 of September 23, is a special taxation regime applicable to Portuguese or foreign tax payers, that live in Portugal for at least 183 days per year (consecutive or not), and if they have not lived in Portugal in the last 5 years

2. Benefits
2.1. For a period of 10 years, taxation related to IRS (personal income tax) on labour income in Portugal is a fixed at a rate of 20%. (*)
2.2. No double taxation for pensions or for employment and self-employment income obtained abroad.

3.Taxable income
Taxation applies to income derived from high added value activities of a scientific artistic or technical nature, such as:
·        Architects, engineers and similar
·        Artists, actors and musicians
·        Auditors
·        Doctors and dentists, teachers and psychologists
·        Liberal professions, technicians and similar
·        Senior managers
·        Investors, directors and managers, when part of companies covered by the contractual regime provided for in the Investment Tax Code

4. Eligibility
4.1.        Having not been a resident in Portugal for the last 5 years;
4.2.        Register at the local tax office as a tax resident in Portugal (to do so you must have remained in Portugal for more than 183 consecutive or non-consecutive days, or having remained for less time, having, at 31st December of that year, a home in such conditions that would lead to the assumption that it is intended to be kept and occupied as your habitual residence);
4.3.        Request that the status of Non-Habitual Resident be attributed at the time of registering as a tax resident in Portugal, or by 31st March of the year following that in which you become a resident in Portugal

5. Notes
(*) In the case of employment or self-employment, the applicable tax rate is 20%, with an additional 3,5% surcharge in 2013.
(**) You may find it on-line:

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