Non-Habitual Residency

The Non-habitual Resident programme was introduced in 2009 with the aim of attracting wealthy foreigners, and individuals talented in high value-added professions, to Portugal. They were known as Ultra and High Net Worth Individuals (UHNWIs).

To become eligible for the NHR tax regime, the individual:

• must reside in Portugal for 183 days or more in the tax year (whether consecutive or not), thus becoming tax resident; or, if fewer than 183 days are spent in Portugal during the tax year, the individual must have accommodation in Portugal, rented or purchased, which is available as his/her residence at all times during the 12-month period
• must declare not to have been a Portuguese tax resident in the 5 years prior to taking up residence in Portugal.

NHR tax status is granted for 10 years and is non-renewable.

NHR benefits include:

• 20% personal income tax (PIT) rate on salaries and income from high value-added business and professional activities of a Portuguese source in the fields of science, arts and technology
• tax exemption on foreign-sourced income taxed overseas
• no tax on accrued wealth
• no inheritance tax on assets outside of Portugal
• tax exemption on inheritances or gifts of assets in Portugal to immediate family ie, spouse/partner, descendants and ascendants
• 10% stamp tax on gifts and inheritances for other individuals
• 10% tax rate on overseas-sourced pension income and retirement schemes
• free remittance of funds to Portugal or abroad
• option to convert to full permanent residency after a qualifying 5-year period
• option to apply for citizenship after 5 years.

To register for NHR tax status, the individual must:

• obtain a Portuguese taxpayer number (Número de Identificação Fiscal - NIF)
• register as a tax resident
• open a bank account
• apply before 31 March in the year after taking up residency in Portugal.

The Non-habitual Resident programme was introduced in 2009 with the aim of attracting wealthy foreigners, and individuals talented in high value-added professions, to Portugal. They were known as Ultra and High Net Worth Individuals (UHNWIs).

To become eligible for the NHR tax regime, the individual:

• must reside in Portugal for 183 days or more in the tax year (whether consecutive or not), thus becoming tax resident; or, if fewer than 183 days are spent in Portugal during the tax year, the individual must have accommodation in Portugal, rented or purchased, which is available as his/her residence at all times during the 12-month period
• must declare not to have been a Portuguese tax resident in the 5 years prior to taking up residence in Portugal.

NHR tax status is granted for 10 years and is non-renewable.

NHR benefits include:

• 20% personal income tax (PIT) rate on salaries and income from high value-added business and professional activities of a Portuguese source in the fields of science, arts and technology
• tax exemption on foreign-sourced income taxed overseas
• no tax on accrued wealth
• no inheritance tax on assets outside of Portugal
• tax exemption on inheritances or gifts of assets in Portugal to immediate family ie, spouse/partner, descendants and ascendants
• 10% stamp tax on gifts and inheritances for other individuals
• 10% tax rate on overseas-sourced pension income and retirement schemes
• free remittance of funds to Portugal or abroad
• option to convert to full permanent residency after a qualifying 5-year period
• option to apply for citizenship after 5 years.

To register for NHR tax status, the individual must:

• obtain a Portuguese taxpayer number (Número de Identificação Fiscal - NIF)
• register as a tax resident
• open a bank account
• apply before 31 March in the year after taking up residency in Portugal.

The Non-habitual Resident programme was introduced in 2009 with the aim of attracting wealthy foreigners, and individuals talented in high value-added professions, to Portugal. They were known as Ultra and High Net Worth Individuals (UHNWIs).

To become eligible for the NHR tax regime, the individual:

• must reside in Portugal for 183 days or more in the tax year (whether consecutive or not), thus becoming tax resident; or, if fewer than 183 days are spent in Portugal during the tax year, the individual must have accommodation in Portugal, rented or purchased, which is available as his/her residence at all times during the 12-month period
• must declare not to have been a Portuguese tax resident in the 5 years prior to taking up residence in Portugal.

NHR tax status is granted for 10 years and is non-renewable.

NHR benefits include:

• 20% personal income tax (PIT) rate on salaries and income from high value-added business and professional activities of a Portuguese source in the fields of science, arts and technology
• tax exemption on foreign-sourced income taxed overseas
• no tax on accrued wealth
• no inheritance tax on assets outside of Portugal
• tax exemption on inheritances or gifts of assets in Portugal to immediate family ie, spouse/partner, descendants and ascendants
• 10% stamp tax on gifts and inheritances for other individuals
• 10% tax rate on overseas-sourced pension income and retirement schemes
• free remittance of funds to Portugal or abroad
• option to convert to full permanent residency after a qualifying 5-year period
• option to apply for citizenship after 5 years.

To register for NHR tax status, the individual must:

• obtain a Portuguese taxpayer number (Número de Identificação Fiscal - NIF)
• register as a tax resident
• open a bank account
• apply before 31 March in the year after taking up residency in Portugal.

The Non-habitual Resident programme was introduced in 2009 with the aim of attracting wealthy foreigners, and individuals talented in high value-added professions, to Portugal. They were known as Ultra and High Net Worth Individuals (UHNWIs).

To become eligible for the NHR tax regime, the individual:

• must reside in Portugal for 183 days or more in the tax year (whether consecutive or not), thus becoming tax resident; or, if fewer than 183 days are spent in Portugal during the tax year, the individual must have accommodation in Portugal, rented or purchased, which is available as his/her residence at all times during the 12-month period
• must declare not to have been a Portuguese tax resident in the 5 years prior to taking up residence in Portugal.

NHR tax status is granted for 10 years and is non-renewable.

NHR benefits include:

• 20% personal income tax (PIT) rate on salaries and income from high value-added business and professional activities of a Portuguese source in the fields of science, arts and technology
• tax exemption on foreign-sourced income taxed overseas
• no tax on accrued wealth
• no inheritance tax on assets outside of Portugal
• tax exemption on inheritances or gifts of assets in Portugal to immediate family ie, spouse/partner, descendants and ascendants
• 10% stamp tax on gifts and inheritances for other individuals
• 10% tax rate on overseas-sourced pension income and retirement schemes
• free remittance of funds to Portugal or abroad
• option to convert to full permanent residency after a qualifying 5-year period
• option to apply for citizenship after 5 years.

To register for NHR tax status, the individual must:

• obtain a Portuguese taxpayer number (Número de Identificação Fiscal - NIF)
• register as a tax resident
• open a bank account
• apply before 31 March in the year after taking up residency in Portugal.