The Portuguese Government has decided to grant a more advantageous Tax Status for highly qualified individuals who wish to reside in Portugal in 2024.
This Status, also referred to as RNH 2.0, provides a benefit in terms of IRS – Individual Income Tax – consisting of a special 20% tax rate on income from highly qualified activities, for a period of 10 consecutive years from the year of registration as a resident in Portugal.
The following activities are covered by this new Tax Status:
a) Teaching in higher education and scientific research, including scientific employment in entities, structures, and networks dedicated to the production, dissemination, and transmission of knowledge, integrated into the national science and technology system, as well as positions and members of social bodies in entities recognized as technology and innovation centers;
b) Qualified positions and members of social bodies under contractual benefits for productive investment;
c) Highly qualified professions carried out in:
i) Companies with relevant applications, in the exercise of commencing functions or in the five previous exercises, benefiting or having benefited from the fiscal regime supporting investment; or,
ii) Industrial and service companies, with a specific scope of activity and that export at least 50% of their turnover, in the exercise of commencing functions or in any of the two previous exercises;
d) Other qualified positions and members of social bodies, in entities that carry out economic activities recognized by AICEP, EPE, or by IAPMEI, IP, as relevant to the national economy, namely for attracting productive investment and reducing regional asymmetries;
e) Research and development personnel whose costs are eligible for the tax incentive system for business research and development;
f) Positions and members of social bodies in entities certified as startups; or
g) Positions or other activities carried out by tax residents in the Autonomous Regions of the Azores and Madeira.
Individuals wishing to benefit from RNH 2.0 must immigrate to Portugal, which necessarily implies obtaining a residence permit if they are foreign citizens, i.e., with residence outside the European Union.
Among the various possible residence permits, the one that may be most suitable for these individuals is the Residence Permit for Highly Qualified Professionals (HQ), also known as Visa D3.
The issuance of Visa D3 is divided into two phases:
- 1st Phase – Consulate – Issuance of the residence visa
The applicant must submit the request for the issuance of the residence visa in person at the Portuguese Consulate or Consular Section of the Portuguese Embassy in the Country of Origin or the country where they are resident, or through the E-visa portal (depending on the consulate in question).
When submitting the residence visa application, the following documents must be provided, among others:
- Proof of the establishment of a company in Portugal;
- Proof of high qualifications;
- Proof of an annual income of at least 1.5 times the gross national average annual salary or three times the value of the index for social support (IAS), i.e., about €1530 monthly in 2024.
Once this residence visa application is submitted, the Consulate has 30 days to issue it.
When the residence visa is issued, it is time for the applicant to travel to Portugal to apply for the residence permit.
- 2nd Phase – AIMA – Issuance of the Residence Permit
In most cases, the residence visa is issued by the Consulate with the date and location of the appointment. In cases where this does not happen, it is necessary to request an appointment by telephone.
At the time of the appointment, the applicant will provide biometric data – photograph, fingerprints, and signature – and submit the necessary documentation for the issuance of the residence card.
Once all the documents are submitted, AIMA has 90 days to issue the residence card.
The law allows highly qualified individuals to avoid the 1st phase of the process and only go through the 2nd phase, thus not needing to go to the Consulate. This is called the HQ Process or HQ Visa.
Characteristics and advantages of the HQ residence card
– The residence permit for highly qualified entrepreneurs is issued for a period of 2 years and renewable for a subsequent period of 3 years;
– This type of residence permit allows the possibility of applying for family reunification;
– Allows travel within the Schengen Area as a tourist for a period of 90 days without the need for a Schengen visa;
– Access to the National Health Service;
– Allows access to Courts, Education, and the Business Universe
– Eligibility for obtaining Portuguese nationality after 5 years of legal residence in Portugal;
– Eligibility for obtaining a permanent residence permit after 5 years of legal residence in Portugal.
Minimum periods of stay required for the renewal of the HQ residence card
During the validity period of the residence card, its holder should not be absent from the country for a period exceeding 6 consecutive months or 8 interpolated months.
However, there are several exceptions to the obligation to comply with these deadlines, which, being exceptions, do not result in the cancellation of the residence permit. The existence of compelling personal, family, or professional reasons that require being absent from the country for periods longer than those mentioned above does not affect the maintenance of the residence permit by its holder.
