NHR GUIDE

How?

Why?

What?

Who?

When?

NHR is a special tax regime that was created to attract people to move to Portugal

Social

NHR status in Portugal

Total NHR's granted

NHRs since 2009

52k

NHR regime in numbers

20% rate for employees

10% rate for pensioners

Tax exemptions on most foreign source income

Simple eligibility requirements

Valid for 10 years

What makes the regime so special?

As long as you comply with NHR requirements, you are definitely eligible for the NHR program.

Requirements: Become tax resident in Portugal Not qualifying as tax resident in Portugal in the five years prior to the relocation

Who can benefit from NHR tax regime?

Everyone!EU and non-EU nationals (holders of golden visa or other residency permits) can become NHRs.

OR

Having a residental accomodation available in Portugal which is used as primary residence

Criterion 2

Criterion 1

Staying in Portugal for more than 183 days (continuously or not) during any 12-months period

How do I become tax resident in Portugal?

Other income

Pensions

Real estate

Employment

Self-employment

Financial investments

How will my foreign source income be taxed?

If the income does not fall into any of the previous categories

If the income is derived from a high value-added activity

If the income is effectively taxed in the country of source

up to

53%

20%

0%

Employment income (foreign source)

If the income does not fall into any of the previous categories

If the income is derived from a high value-added activity

If the income can be taxed at source + high value-added activity

up to

53%

20%

0%

Self-employment income (foreign source)

... and many more!

Actors and producers

Composers, musicians and singers

DJs

Scientists

Database and network specialists

System analysts

Programmers (software, mutimedia, apps)

Plastic artists

Journalists

Agricultures

Doctors

Engineers

Pilots

University teachers

Board members and Directors

High value-added activities - examples:

Dividends Interest Capital gains Other investment income

If the income is derived from a blacklisted country/ territory

If the income can only be taxed in Portugal

If the income can be taxed in the country of source

up to

53%

20%

0%

Financial investments (foreign source)

Rental Capital gains

Capital gains derived from a tax haven

Rental income derived from a tax haven

If the income can be taxed in the country of source

up to

53%

28%

0%

Real estate (foreign source)

For those who became NHR as of 1st April, 2020

If you became an NHR until 31st March, 2020

10%

0%

Pensions(foreign source)

If the income can only be taxed in Portugal

If the income can be taxed in the country of source

53%

0%

Other income(foreign source)

All other income

Certain types of income (e.g., rents, investment income, capital gains)

Employment and self-employment income

up to

53%

28%

0%

What about Portuguese source income?

31

March

NHR status must be requested until March 31st of the year after taking up tax residency in Portugal.

When is the deadline to apply for the regime?

Application for the NHR status

Requesting the access codes to the Tax Authorities' website

Registration as tax resident

Finding your dream house in Portugal

Obtaining a Portuguese taxpayer number

Pathway for becoming NHR

Preparation Plan ahead and make the necessary adjustments before taking up residence in Portugal. Examples of key issues:

• Capital gains
• Income from tax havens
• CFC/imputation rules

Before moving to Portugal Professional advice There is a lot of scattered information and not all of it applies to your case (not all types of income benefit from a tax exemption!).

Prepare your relocation to Portugal! Seek professional advice about your specific situation before moving.

What is your key advice for me?

After moving to Portugal Make sure that you have professional support in filing your annual tax return – ticking the right boxes is critical - and many other reporting obligations that may apply to you as tax resident in Portugal.

During your move to Portugal Ensure that you have assistance from specialized advisors throughout the process - formalities matter and the deadline for the NHR regime is really a dead line that drives you away from the regime.

Do not take an action by your own.Formalities really matter!

What is your key advice for me?

Book a consultation

We help you to make decisions, to run estimates, to file returns and other reporting obligations, to ensure that you are fully compliant and always in a timely fashion.

Book a NHR consultation with the tax expert - specialist in IRS, social security, non-habitual residents, personal income taxes and social security regimes (domestic and international) with more than 20 years of experience.

Still have questions?