NON-HABITUAL TAX RESIDENT PROGRAM

NON-HABITUAL TAX RESIDENT PROGRAM

WHAT IS  NHTR?

The Portuguese Non-Habitual Tax Resident program leads the country of Portugal to become the most desirable retirement haven on the European continent. The country of Portugal is also rapidly becoming a hotspot for numerous Scandinavian, French, German, and British professionals that are seeking to benefit from the reduced taxes and the tax-free retirement regime that the Portuguese Non-Habitual Tax Resident program provides.
The non habitual resident tax law has been recently introduced in Portugal, and the investors who opt for making an investment into the Portuguese property market have the opportunity to directly benefit from this newly implemented law.
Provided that certain conditions, which are specified by the law, are met – the non habitual resident tax law allows an individual to be exempt from income tax on the part of their income that they receive from foreign sources. The types of foreign sourced income that are subject to the new law are as follows: Dividends, pension, interest, rental income, capital gains, income, as well as any other type of investment income.
    The Portuguese Non-Habitual Tax Resident program focuses on two demographics of people – The pensioners who are receiving pension from overseas sources, and the professionals who are either employed or self-employed and who are eager to receive their foreign-sourced income completely tax-free for ten consecutive years, simultaneously aiding the economy of the country of Portugal.

ADVANTAGES OF THE PORTUGAL NON-HABITUAL TAX RESIDENT

Some of the most notable advantages of subscribing to the Portuguese Non-Habitual Tax Resident program include:

  • The opportunity to benefit from a personal income tax treatment over a period of ten years;
  • The opportunity to enjoy a tax exemption on almost all foreign-sourced income;
  • The limitation to twenty per cent flat rate tax on certain Portuguese-sourced incomes including specific professions as well as the income sourced from self-employment as opposed to the typical Portuguese tax income taxes that go up to forty-eight per cent;
  • The opportunity to become part of a white-listed tax environment within the European Union;
  • The opportunity for tax exemption on gifts and / or inheritance bestowed to and by direct family members;
  • The exemption from the wealth tax;
  • The access to free remittance of funds to the country of Portugal.

GREAT SOURCE OF PORTUGAL PROPERTY FOR SALE BY TYPE

High Value Professions

under Portugal Non-Habitual Tax Resident Program

Professions that entail high cultural and economic worth are granted generous tax exemptions under the Portuguese Non-Habitual Tax Resident program as they are considered to add value to the country of Portugal when imported.

The country of Portugal considers the following professions to be of high value to the country, culture, and economy – Architects, software consultants, musicians, archaeologists, tax consultants, geologists, clinical surgeons, higher management, dentists, investors, doctors, computer programmers, computer consultants, psychologists, designers, psychiatrists, directors, engineers.

If one comes to the country of Portugal for the purposes of work, they will profit from a twenty per cent fixed income tax – the IRS -.  This reduced tax rate is applicable to all high value added skilled professionals. The profession list that is subject to falling into this bracket includes – architects, designers, doctors, educators, financial consultants, senior managers, etc. One may refer to the full list of professions that we have provided on our website.

ADVANTAGES

No Tax on Private Pensions

The status-members of the Portuguese Non-Habitual Tax Resident program who are in receipt of retirement income from a foreign source will be exempt from the Portuguese tax regime, if the retirement income in question is subject to tax under an existing double-tax treaty, or if the retirement income is not considered to be obtained / sourced from the country of Portugal.

Ten Years with Twenty Per Cent Tax on Income

The status-members of the Portuguese Non-Habitual Tax Resident program who are active managers, dentists, engineers, doctors, or architects, or belong to any of the aforementioned high-value professions, and who have chosen to live and work in the country of Portugal will receive a fixed twenty per cent taxation rate on income for the period of ten consecutive years

The Absence of Double Taxation

Since most of the double-tax treaties grant exclusive taxation rights to the country of residency in effect the retirement income, dependent, or independent income could, in theory, end up being fully exempt from taxation in the country of Portugal.

Living in The Country of Portugal

The status-members of the Portuguese Non-Habitual Tax Resident program get to live in one of the most peaceful countries in the world and the best destination on the European continent since 2015. Portugal is a country where the sun shines for three quarters of the year over the most beautiful beaches, mountains, and golden fields. All that comes combined with vibrant cities steeped in history for one to visit and enjoy.

HOW TO QUALIFY FOR NHTR

The Residency

If one is a national resident of a country that is part of the European Union, such as – Iceland, Switzerland, Liechtenstein, or Norway – and one remains in the country of Portugal for a period of more than three months, they must request a Registration Certificate – Certificado de Registo – from the City Council in their given area of residence.
This document serves to formalise one’s right to remain in the country of Portugal as a legal resident. After one has held the Registration Certificate for five consecutive years, they may request a Permanent Residence Certificate – Certificado de Residência Permanente – from the Foreigners and Borders Service – Serviço de Estrageiros e Fronteiras / SEF – of the country of Portugal.

Register in The Local Tax Office

If one is a national resident of a country that is part of the European Union, such as – Iceland, Switzerland, Liechtenstein, or Norway – and one remains in the country of Portugal for a period of more than three months, they must request a Registration Certificate – Certificado de Registo – from the City Council in their given area of residence.
This document serves to formalise one’s right to remain in the country of Portugal as a legal resident. After one has held the Registration Certificate for five consecutive years, they may request a Permanent Residence Certificate – Certificado de Residência Permanente – from the Foreigners and Borders Service – Serviço de Estrageiros e Fronteiras / SEF – of the country of Portugal.

Request Enrollment As Non-Habitual Tax Resident

As soon as one is registered at the tax office as a tax resident of the country of Portugal, they will receive their Portuguese taxpayer card. Once the card has been emitted, they will be able to apply for the Portuguese Non-Habitual Tax Resident Program.

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