Non Habitual Resident Status

How do you get non-habitual resident (NHR) status?

• You may not have been a Portuguese resident in the last five years.
• Register as resident in Portugal for taxes purposes with the local tax office (for that, you must have stayed in Portugal for more thant 183 consecutive or non-consecutive days, or, if you have stayed for less time you need to have been resident at a property on the 31st December of the same year and the situation must indicate that you intend keeping and occupying the property as your main residence).
• Request non-habitual resident status at the same time as you register as resident in Portugal for tax purposes, or before the 31st March of the year following the year you became resident in Portugal.

Comparative advantages of NHR status:

• For 10 years’ tax is fixed at a rate of 20% on the income of natural persons (income tax) for any income received for activities in Portugal.
• No double taxation on any pensions or income as an employee or as a self-employed person done abroad.
• A law is anticipated that will create a 17% progressive tax rate.