Introduced in 2009, the status of Non Habitual Tax Resident (NHR) offers the possibility for future residents in Portugal to obtain tax benefits on income from foreign sources.
The requirements for obtaining NHR status are as follows
- You must not have been a resident of Portugal for a period of 5 years prior to applying for NHR status. This means that you must not have paid taxes to the Portuguese tax authorities during this period.
- You must show that you will reside in Portugal for at least 183 days per year. This period can be either continuous or discontinuous.
- You must have a dwelling on Portuguese territory. This will indicate your intention to make it your principal residence.
Tax benefits of the NHR status
They are declined according to your professional situation:
As a retired person
If you are retired and have NHR status, the tax rate applied to your retirement benefits or pension will be 10% (instead of about 40%) for a period of 10 years.
As a person still working
Special provisions also exist for active persons exercising an activity with high added value (architects, engineers, artists, doctors, university professors, administrators and company managers, or tax consultants). The fixed tax rate is also 20% for a period of 10 years.
Vie d’Azur accompanies you to initiate the administrative steps required to obtain the NHR status with the Portuguese authorities.