NHR Portugal tax program.
Non habitual residency Portugal.
Frequently asked questions:
Am I exempt from paying taxes in Portugal if they are getting paid in another country?
If one’s salary is paid in a country which has signed a double tax treaty with Portugal, the individual as a non-habitual resident the NHR will be exempt from double taxation in the country of Portugal.
What categories of income are exempt from tax under the non-habitual resident the NHR status?
Under the non-habitual resident the NHR tax program, most types of foreign-sourced income is exempt from taxation in the country of Portugal for ten consecutive years, as is the income that is subject to tax in another country.
This implies that British migrants, for example, are highly likely to obtain a UK-sourced pension revenue, rental revenue, property capital gains, interest, dividends, and other non-Portuguese job earnings exempt from taxes in the country of Portugal.
What if one’s income is paid in the country of Portugal?
One may still be qualified for some important tax cuts, depending on their job and source of revenue.
When is one recognised as a tax resident in the country of Portugal?
One is granted a tax resident status in Portugal if they have lived in the country of Portugal for at least one hundred and eighty-three days –consecutive or not within a twelve-month period.
They have lived in the country of Portugal for less than one hundred and eighty-three days and, on the 31st of December of that year, they are in a possession of a house or an apartment, and are involved in a situation that indicates that the plan to keep it as their usual place of residence.
Where should one reside in Portugal for the NHR?
You should refer to the guide on Portugal we have provided on our website to choose their preferred place to live. If they are a non-EU citizen, they may also take advantage of the Portuguese Golden Visa program.
What are the advantages of the Portuguese non-habitual resident the NHR program?
The Portuguese non-habitual resident – the NHR – program status provides tax advantages to those who have established a residency in the country of Portugal for the purposes of taxation, which enables them to have tax breaks for ten consecutive years.
One may refer to our other article on our website about relocating to the country of Portugal after Brexit.
What if one is coming to the country of Portugal to work?
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.
What if one is coming to the country of Portugal to retire?
One may profit from the Portuguese non-habitual resident the NHR if they are a retiree and have moved to the country of Portugal.
All retirement incomes coming in from outside of the country of Portugal are exempt from the fixed income tax the IRS payments but earned in Portugal. This is owing to the fact that, in places where double tax agreements exist such as between the country of Portugal and the country of France for instance.
Are you retiring abroad?
You can profit from the Portugal NHR status if you are a pensioner and are moving to Portugal. All pension incomes from outside Portugal are exempt from IRS payments but earned in Portugal. This is because where double tax agreements exist (such as with Portugal and France for instance), the right to raise taxes falls into the country of residence. Portugal currently exempts retirees from paying taxes on their non-Portuguese pension incomes.
If you’re looking for a nice place to live or spend your stay in Portugal, we can also help you find a house or property.