The Fiscal Regime for Non-habitual Residents consists of a tax regime based on Personal Income Tax (IRS), which aims to attract qualified professionals to work in Portugal with high added-value activities and beneficiaries of pensions obtained abroad.
As of February 2020, the Portuguese Parliament will aloow the Government to introduce changes regarding the non-habitual resident regime. These changes will not affect those who are already non-habitual residents, that is, those who benefit from the current IRS exemption (0%), and whoever signs up until the new regime comes into force will continue to benefit from this advantage until the end of the ten years of duration on the tax incentive.
After the entry into force of this measure, new adherents to the regime on non-habitual residents will lose the double tax exemption, being taxed at a fixed rate of 10% on pensions paid by their country of origin.
For now, the conditions in force, are those shown below.
Non-Habitual Residents
Non-Habitual Residents
Benefits
- Taxation, over a period of 10 years, at a fixed income tax rate of 20% on income earned in Portugal.
- No double taxation for pension incomes or for employment and self-employment income obtained abroad
Recipients
- Citizens who are not resident in Portugal and are willing to return home after a minimum period of absence of 5 years (eg independent professionals, pensioners, dependent workers, emigrants).
- Citizens not resident in Portugal who wish to establish themselves as temporary residents, as a result of posting relations (eg independent professionals, dependent workers, members of statutory organs).
How to obtain Non-Resident Status?
- To be a tax resident in Portugal, remaining in Portugal more than 183 days (consecutive or non-consecutive) throughout the year. This permanence is verifiable upon presentation of deed of purchase of a property, or upon presentation of a lease of duration of 6 months or more.
- Not have been classified as a tax resident in Portugal in the last 5 years prior to the application of the regime.
- The application for registration as a non-habitual resident must be made, electronically, at the Tax Office portal, after the registration as a resident in Portuguese territory and until March 31, inclusive, of the year following that in which he becomes a resident in that territory.
THE AVAILABLE INFORMATION DOESN´T EXEMPT FROM CONSULTATION OF THE APPLICABLE LAW
