HOW CAN I APPLY TO THE NHR?

In order to apply you need to:

1. transfer your tax residency to Portugal. That can happen if:

a) you declare you want to be a tax resident and you have a Portuguese address (either by purchasing a property or by lease), OR

b) you stay for more than 183 days in the country.  

2. Not have been taxed as a resident in Portugal for the last five years. The fact of having a secondary residence in Portugal does not prevent the application of the regime.

PERIOD OF APPLICATION OF THE PROGRAM

10 years.

DECLARATION OBLIGATIONS

If you transfer your tax residency to Portugal, you will need to declare all your global income in the annual declaration. Regardless of its source and the taxation applied to it. Even exempt income must be declared. It will also be necessary to share the IBAN of your accounts held outside Portugal.

OBTAINING THE STATUS OF NON-HABITUAL RESIDENCE

After the submission of the request, the approval of the status of Non-Habitual Residents is granted in 24-48 hours. For that purpose, the following diligences will need to be followed:

1st step: Obtaining the Tax Identification Number as a Non-Resident

2.nd step: Obtaining an address in Portugal (by rental or acquisition)

3rd step: Change of tax residence to Portugal

4th step: Electronic submission of the application for Non-Habitual Resident status

The status of non-habitual residents is individual. Each member of the couple will have to make the application.

EXEMPTIONS ON TAXATION OF FOREIGN SOURCE INCOME:

1. Professional income – exempt in Portugal when effectively taxed in the country of source.

2. Private Retirement Pensions (In a few cases will be taxable in a fixed rate of 10%)

3. Dividends, interest, royalties, real estate capital gains, etc. – exempted when the Convention for the Avoidance of Double Taxation between Portugal and the country of source provides for the possibility of taxation in that country

INCOME FROM PORTUGUESE SOURCES:

1. Professional Income – Taxable at a flat rate of 20%, if related to the exercise of “high value-added” professions.

2. Property income – Will be taxed at a flat rate of 28%.

3. Real estate capital gains – Only 50% of the capital gain will be taxable, applying the general rates provided in the IRS Code.

4. Any other type of income – In principle, will be taxed per the norm Portuguese tax system, being subject to the application of progressive rates up to 48%.

PROPERTY INCOME FROM PORTUGUESE SOURCES:

1. The registration of lease contracts is compulsory, and the owner must pay a stamp duty of 10% on the first rent.

2. Land income will be taxed at a flat rate of 28%, without prejudice to the possibility of aggregation with other income and submission to the general progressive personal income tax rates.

PORTUGAL DOESN’T HAVE WEALTH TAX, INHERITANCE TAX, GIFT TAX BETWEEN SPOUSES OR DIRECT DESCENDENTS *In the case of income from tax havens, it may be subject to an increased rate