Non-Habitual Residents Tax Regime

Non-Habitual Residents Tax Regime

NHR

Portugal created a special regime for new residents (also applicable to Portuguese living abroad for many years) designed to promote the transfer of residence of skillful professionals, entrepreneurs and investors, by offering attractive tax opportunities.

The sole requirement to benefit from this preferential treatment is to become a Portuguese tax resident, not having been a tax resident in Portugal in the previous five years. This status can be maintained for 10 years.

Benefits

  • ​Foreign sourced passive income derived outside Portugal (dividens, pensions, interest) is fully exempt from taxes.
  • Foreign sourced active income derived outside Portugal (income from employment and self employment) derived in connection with high value added activities may also be fully exempt provided certain conditions are met.
  • Portuguese sourced active income is subject to a flat tax rate of 23.5%.
  • No wealth tax.
  • No gift tax. 
  • No inheritance tax.

Why Portugal?

  • A modern country where you can find a huge diversity of landscapes and environments in close proximity to one another: sandy beaches, golden plains and mountains, beautiful golf courses, vibrant and cosmopolitan cities all of which boast a heritage going back over a thousand years.
  • The Portuguese are a gracious and friendly people, welcoming all visitors regardless of where they come from.
  • Its superb cuisine, fine wines and hospitable people make this a paradise of the highest quality.
  • With its mild climate, winters in Portugal are very amenable. And in summer, thanks to the oceanic influence, temperatures are rarely extreme.
  • Portugal is the 18th most peaceful country in the world in a sample of 162 countries (Global Peace Index 2013).