Non-habitual resident status (NHR)
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What is NHR status?
The investment tax code approved by Legislative Decree 249/2009 of 23 September created the non-habitual resident’s tax regime to encourage the transfer to Portugal of non-resident professional experts with income from high value-added activities, as well as recipients of pensions received abroad.
The citizen must fulfill the following conditions:
- To be considered, in the fiscal sense, reside in Portuguese territory, the year in which the citizen intends that starts taxation as non-habitual resident.
- Not to have been considered resident in Portuguese territory in the five years preceding the application for taxation as a habitual resident.
Non-habitual residents obtain the right to benefit from taxation of foreign-source income, with exemption from taxation in Portugal and possible double exemption, for a period of 10 consecutive years from the year of its registration as reside in Portuguese territory.
Concretely, to be considered as a non-habitual resident in Portugal, you must have stayed for at least 183 days in the country or have, on 31 December, a home that you have declared as your usual place of residence in the country. You will thus be exempt from personal income tax for a period of ten years. Non-habitual residents are thus entitled to an exemption from income tax collected abroad. Moreover, this status allows for a 20% flat rate on taxes resulting from wages and the provision of services in Portugal.
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