Non-Habitual Resident (NHR)

European pensioners and active expatriates (with high value-added potential) who change their tax residence to Portugal can obtain the status of Non-Habitual Resident (NHR) for a period of 10 years, which allows:

• An income tax with a reduced rate of 10% for retirees receiving pensions from the private sector
• A special tax rate of 20% for labour income received in Portugal for Non-Habitual Residents that are employed and their income from activities are considered to be “High added value”
• A 0% tax rate for income received outside Portugal (dividends, interest, royalties, etc.)

There is no double taxation on the income derived from foreign sources, specifically, income of employed and self-employed individuals, property, capital gains, interests, dividends and other capital income, thanks to tax treaties between European countries, nor to inheritance taxes in Portugal.

In addition to tax benefits, there are other advantages:

• The low cost of living in Portugal, which allows you to maximize your income and increase your standard of living
• An investment without the risk of fluctuating exchange rates (which is not the case outside the euro zone)
• The pension can be paid directly into your home country bank account or into a bank account in Portugal
• Unlike in other countries, it is easy to send the money from the sale of the property back to the country of origin

Three conditions to achieve this status:

• not been taxed in Portugal for the last five years
• justify a stay of more than 183 days, consecutive or not, during the year
• have a principal residence in Portugal on 31st December of the previous year

Before leaving, or even deciding to leave France, it is advisable to seek specialist advice. Every case needs to be carefully analyzed to ensure a smooth departure and a good installation, to know what tax benefits are available and how to obtain them, and of course to know the ideal place to live.

For all our Buyers Clients of units of developments ready for deed, until the end of November 2023, before the cancellation of this regime scheduled for January 1, 2024, we offer the support of our specialist lawyer for the entire process of obtaining the NHR regime, namely:
(i) assistance with registration at the city council (EU citizenship registration), 
(ii) registration with tax authorities (obtaining a Portuguese tax number with a Portuguese address, or updating the registration to a Portuguese address),
(iii) online application on the NHR tax authorities web portal (the password for the web portal will be sent to the Portuguese address indicated).