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NHR status in Portugal

Social

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

When?

Who?

What?

Why?

How?

NHR regime in numbers

52k

NHRs since 2009

Total NHR's granted

What makes the regime so special?

Valid for 10 years

Simple eligibility requirements

Tax exemptions on most foreign source income

10% rate for pensioners

20% rate for employees

Everyone!


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

Who can benefit from NHR tax regime?

Requirements:

Become tax resident in Portugal

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

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

How do I become tax resident in Portugal?

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

Criterion 1

Criterion 2

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

OR

Are there requirements about the type or value of the property?

No! The Portuguese rules are not establish any conditions, so:

  • you can either rent or buy property
  • you can live anywhere in the country (mainland or islands)
  • there is no minimum threshold on the monthly rent or on the property value.

How will my foreign source income be taxed?

Financial investments

Self-employment

Employment

Real estate

Pensions

Other income

Employment income (foreign source)

0%

20%

53%

up to

If the income is effectively taxed in the country of source

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

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

As determined by the applicable Tax Treaty or the OECD model tax convention, if no Tax Treaty is in force between Portugal and the country of source.

Self-employment income

(foreign source)

0%

20%

53%

up to

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

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

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

As determined by the applicable Tax Treaty or the OECD model tax convention, if no Tax Treaty is in force between Portugal and the country of source.

High value-added activities - examples:

Board members and Directors

University teachers

Pilots

Engineers

Doctors

Agricultures

Journalists

Plastic artists

Programmers (software, mutimedia, apps)

System
analysts

Database and
network specialists

Scientists

DJs

Composers, musicians and singers

Actors and producers

... and many more!

Financial investments

(foreign source)

0%

20%

53%

up to

If the income can be taxed in the country of source

If the income can only be taxed in Portugal

If the income is derived from a blacklisted country/ territory

Dividends

Interest

Capital gains

Other investment income

Dividends and interest are always exempt if they are not sourced from a tax haven.

Capital gains and distribution from funds are usually taxable in Portugal (examples of exceptions: Sweden and Brazil).

Real estate

(foreign source)

0%

28%

53%

up to

If the income can be taxed in the country of source

Rental income derived from a tax haven

Capital gains
derived from a tax haven

Rental

Capital gains

As determined by the applicable Tax Treaty or the OECD model tax convention, if no Tax Treaty is in force between Portugal and the country of source.

Pensions

(foreign source)

0%

10%

If you became an NHR until 31st March, 2020

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

Other income

(foreign source)

0%

53%

If the income can be taxed in the country of source

If the income can only be taxed in Portugal

As determined by the applicable Tax Treaty or the OECD model tax convention, if no Tax Treaty is in force between Portugal and the country of source.

What about Portuguese source income?

0%

28%

53%

up to

Employment and self-employment income

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

All other income

If derived from high value-added activities.

When is the deadline to apply for the regime?

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

March

31

Pathway for becoming NHR

Obtaining a Portuguese
taxpayer
number

Finding your
dream house
in Portugal

Registration as
tax resident

Requesting the
access codes
to the Tax
Authorities'
website

Application for
the NHR
status

What is your key advice for me?

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

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!).

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

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What is your key advice for me?

Do not take an action by your own.

Formalities really matter!

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.

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.

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Still have questions?

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.

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 consultation