NHR GUIDE
E-residence
Created on December 6, 2021
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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 PortugalNot 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)
Systemanalysts
Database andnetwork 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
DividendsInterestCapital gainsOther 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
RentalCapital 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 of1st 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 Portuguesetaxpayernumber
Finding yourdream housein Portugal
Registration astax resident
Requesting theaccess codesto the TaxAuthorities'website
Application forthe 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 PortugalProfessional 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!).
PreparationPlan 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 PortugalEnsure 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 PortugalMake 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