Non Habitual Resident Tax Regime

Benefits of the NHR Tax Regime Portugal

 

Benefits for a period of 10 years

Taxation on personal labour income (IRS) in Portugal is set at a fixed rate of 20%

No double taxation on pensions, employment or self-employment income obtained abroad

 

Acquire Non Habitual Resident Status?

1. Non resident in Portugal for the last 5 years

2. Register as a tax resident in Portugal

A. You have stayed in Portugal for more than 183 consecutive or non-consecutive days

B. Remained for less time but have on 31st December, a home that is intended to, or occupied as your habitual residence

3. Request the status of Non-Habitual Resident

A. Attributed at the time of registering as a tax resident in Portugal

B. By the 31st March of the following year that you become a resident in Portugal

 

Non-Habitual Resident Status

What is the taxation rate and criteria for domestic sourced income?

 

Employment or self-employment

The Taxation Rate is 20% plus a 3.5% surcharge in 2015

 

Tax on income derived from high added value activities of a scientific, artistic or technical nature

Architects, engineers and similar

Fine artists, actors and musicians

Auditors

Doctors and dentists, teachers and psychologists

Liberal professions, technicians and similar

Senior managers

Investors, directors and managers (when companies are covered by the contractual regime of the Investment Tax Code)

 

Non-Habitual Resident taxed

For 10 years from the year of registering as a tax resident in Portuguese territory

 

Non-Habitual Resident Status

Foreign sourced income of Non Habitual Residents in Portugal are exempt from taxation when:

 

Pensioners / Retired People when

1· Income is taxed in the source State (Subject to the Convention to Eliminate Double Taxation signed by Portugal and that State)

2· Income is not considered to have been obtained through a Portuguese source (Subject to the criteria provided for in the IRS / Personal Income Tax Code)

 

Income from employment, when

1· Income is taxed in the State of origin (Subject to the Convention to Eliminate Double Taxation, signed by Portugal and that State)

2· Income is taxed in another State with which Portugal has not signed any Convention to Eliminate Double Taxation(When income has not been obtained on Portuguese territory as in article 18 of the IRS / Personal Income Tax Code)

 

Income from self-employment:

1. Through services of a high added value, of a scientific, artistic or technical nature

2. Through intellectual or industrial property investment, rental, capital gains income or increased equity when;

 

A· The income may be taxed in the source country, territory or region (Subject to the Convention to Eliminate Double Taxation#)

B· When no convention to eliminate double taxation has been signed the OECD model convention may be applied (Subject to any observations and reservations made by Portugal) (And the source country, territory or region does not have a privileged tax regime) (And income is not obtained in Portuguese territory as per article 18 of the IRS / Personal Income Tax Code

 

The Convention to Eliminate Double Taxation# convention to eliminate double taxation

 

Additional Information

Golden Residence Programme

Tax Exemptions Retired Persons

Living in Portugal