WHAT DOES THE NHR SCHEME OFFER?

As of January 1, 2024, the Portuguese government has introduced a new version of the NHR program, called the Fiscal Incentive for Scientific Research and Innovation (IFICI) Program.

This update aims to focus more specifically on attracting highly qualified professionals to Portugal.

The NHR Program in Portugal provides successful applicants with the following advantages:

  • Special individual tax treatment on incomes for a period of 10 years (non Renewable)
  • Tax Exemption on most foreign source of income
  • 50% Exemption (effective 20% rate), capped at €250,000
  • Opportunity to obtain tax residency within the EU, in a white-listed country
  • Pension Income is subject to normal progressive rates (14.5% to 53%)
  • Rental Income – Exempt (If taxable abroad under DTA or OECD Tax Model)
  • Dividends & Interest – Exempt (If taxable abroad under DTA or OECD Tax Model)
  • Capital Gains – Exempt (with exceptions for gains from movable assets)
  • No wealth tax
  • Free cash remittance to Portugal

PROFESSIONS

CONSIDERED "High value and cultural value"

Certain professionals are given generous tax exemptions due to the high economic
and cultural value they add to Portugal.

These professions include:

1. Researchers with PhDs or those engaged in R&D projects.

2. Directors or employees of Portuguese-based organisations producing knowledge.

3. Highly qualified professionals in strategic sectors.

4. R&D personnel eligible for Portugal’s R&D tax incentive program (SIFIDE).

5. Directors or employees of accredited Portuguese startups.

Under the NHR regime, most of the beneficiaries’ income that originates from a foreign source is exempt from taxation in Portugal for ten consecutive years. 

This means that if the income is from an external source, that has a DTA (Double Taxation Agreement) with Portugal, then the income will not be subject to taxation in Portugal.

 

DTA (DOUBLE TAXATION TREATMENT):

A treaty between two or more countries, created to avoid double taxation of income and property. It aims to properly divide the taxation between the contracting countries, to avoid tax evasion and differences and to secure the taxpayers’ rights.

Contact Sardo Luxury Real Estate
for the full list of 78 countries
that currently have DTA with Portugal

HOW TO APPLY

FOR A NON-HABITUAL RESIDENTS REGIME?

PROOF OF RESIDENCY

The first step is to prove that you have the legal right to reside in Portugal.

If you are a citizen of EU/EEA/Switzerland, you can register without a visa, in your region’s city hall. Here you will be asked to present your passport, EHIC Card and current address.

If you are a non-EU citizen, you will need to receive a residence permit before you are allowed to settle in Portugal. 

The most common methods used to obtain a permit are via the Golden Visa Program or Passive Income, which you can do online (https://www.sef.pt) or in your country’s Portuguese embassy.

PORTUGUESE TAX IDENTITY NUMBER

It is essential you acquire a NIF number (nine-digit, tax identity number), if you intend to do business or other official/legal activities in Portugal.

Non-residents can obtain it through their representative/lawyer in Portugal, while residents in Portugal can get it directly from the local tax offices (“finanças”).

You will have to present your ID card/ passport and proof of residency.

TIP: The application process can be elaborate, so you may request assistance from a professional.
REGISTERING AS A TAX RESIDENT IN PORTUGAL

After you obtain your NIF, you must register as a tax resident in the local tax office (“finanças”).

APPLICATION FOR NHR STATUS

First you must register at the corresponding government website. This will require your NIF number, email address, phone number, and fiscal address. Once you have registered, you will then receive a password in the post (this will take around 2 weeks). You can then complete the application on the site by submitting the documents listed below:

  • A document that states you were not a tax resident in Portugal in the preceding five years
  • Your tax returns from the previous 5 years
  • A rental agreement or a deed of a property in Portugal