Non-habitual Residency

Benefits

  • Special tax status for up to a period of 10 years;
  • Income sourced within Portugal, considered as qualified within the scheme, is taxed at a flat rate of 20%;
  • Income sourced from outside of Portugal could be deemed as tax exempt;
  • There is no double taxation for pension income or for employment and self-employment income obtained abroad (subject to Double Taxation Treaties).

ELIGIBILITY 

Having not been taxed in Portugal, as a tax resident, in the previous 5 years and subsequently being a Portuguese tax resident as a result of one of the following:

  • Having your habitual residence in Portugal;
  • Spending more than 183 days in Portugal in the tax year - 1st January to 31st December;
  • Having a property in Portugal at 31st December of that tax year with the intention to use it as your main habitual residence.

The Non-Habitual Resident scheme is a tax regime that offers foreign residents reduced tax rates and exemptions on some taxes. It was introduced in 2009 and updated in 2020.

 

The regime aims to attract qualified professionals and high net worth individuals, in addition to people benefitting from pensions obtained abroad.

 

Those who reside abroad and intend to live in Portugal and Portuguese citizens returning to Portugal could be eligible to apply.

 

This preferential tax status is issued for ten years. You can only apply for it once and it is not renewable.

What next?

You should apply for the Non-Habitual Resident scheme until the 31st of March of the following year. You can seek advise from a tax specialist or a legal representative who can guide you through the process. Individuals who have the right to be a resident in Portugal through the Golden Visa Program can apply for the Non-Habitual Resident scheme.