NON-HABITUAL
RESIDENTS REGIME
In 2009, Portugal introduced legislation designed to attract high net worth individuals and their families with a view to increasing foreign investment and external talent and entrepreneurship. The aim is to boost the competitiveness of Portugal via the resulting investments of NHRs, particularly in respect of R&D and new technologies.
Non-habitual residents (NHRs) must apply for tax residency in Portugal, meaning that they must spend at least 6 months of any given year in Portugal;
To be eligible, they cannot have been a taxpayer in Portugal in the previous 5 year period;
Flat income tax rate of 20% applies to income from high value activity in Portugal;
Only certain scientific, artistic and technical activities are considered of high value (there is a specific list of activities considered under NHR regime);
No tax on most sources of income from outside Portugal, including salaries, income from real estate, capital gains, interest, among others;
Applicable for a period of up to 10 years.
“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty”
WINSTON CHURCHILL
