Non-Habitual Resident in Portugal

Living in Portugal: how the Non-Habitual Resident program can get you there

In part I of this “Living in Portugal” series, we compiled useful information about how the Golden Visa program can get you to live in Portugal. Today, we highlight how the Non-Habitual Resident program can be beneficial for foreign citizens living in Portugal.

The incentive, introduced in 2009 by the Portuguese government, gives the opportunity to those who wish to become residents in Portugal, to benefit from a tax exemption of foreign income for the duration of 10 years while keeping their wealth.

The sole requirement to be eligible for this tax-beneficial program is not having been a tax resident in Portugal in the 5 years prior to the application.

This attractive program also covers professional income from high value-added activities, which benefit from a special flat tax rate of 20%.

For the ones that are not ready to abandon their country for some reason, Portugal offers the Non-Habitual Resident Program. This gives the possibility of having a home in Portugal with tax exemptions and benefits.

Under the NHR program, you can still have a plan B in Portugal without having to actually move here, but benefiting from becoming a tax resident in Portugal. This way you can remain in your home country, receive tax free income from both countries, and even have access to Portuguese health care and other benefits.

Also, NHR doesn’t require the purchase of a property, so you don’t have to commit to buying since renting is also an option. But if you do buy a house in Portugal, there is also the possibility of renting it to take advantage of another income source.

Portuguese NHRs have the ability to:

Who is eligible?

Anyone who becomes a tax resident in Portugal, which means:

Still curious about why Portugal is a great country to live in? Watch our video below and find out. There will be no doubts left!

Disclaimer: The Portuguese Government is likely to modify the tax benefits provided by the Non-Habitual Resident program, but, to this date, those changes have not taken place. We will keep you updated on this issue.

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