Tax Law

Non-Habitual Resident

For whom it is intended:

Foreign or Portuguese citizens who have not been considered tax residents in Portugal in the last five years and who become tax residents in Portugal.

The Non-Habitual Resident Status (NHR) is a special tax scheme that, for ten years, allows the relief of personal income tax (IRS) on income originating in Portugal, from qualified work and taxable income or pensions, as well as the exemption from tax on income generated outside Portugal (except pensions).

NHR holders can also benefit from other tax benefits that Portugal offers, namely inheritances and donations, between ascendants and descendants (e.g. parent to child, or grandparent to grandchildren, or child to parent) and husband and wife, are exempt from said tax. Other inheritances and gifts (such as uncle to a nephew or unrelated persons) are taxed at a flat rate of 10% on assets located in Portugal (other assets will not be subject to tax).

Requirements:

  • Not having been considered a tax resident in Portugal in the last 5 years;
  • Be considered resident in Portugal, which occurs if:
  1. Staying in Portugal for more than 183 days

or

  1. Buying or renting a property in Portugal (having available housing in conditions that make it possible to presume that it will become a permanent residence).
  • Be an income earner, entitled to:
  1. Taxation at the rate of 10 per cent of income earned abroad from pensions (category H)
  2. The exemption of income obtained abroad from employment, self-employment, capital, property income and real estate capital gains, intellectual or industrial property
  3. Taxation of income obtained in Portugal at reduced rates in the case of high value-added activities* (e.g. 20% for income from dependent or self-employment and 28% for income from capital and property).

 

* Occupations considered to have high added value are:

  • Market-oriented farmers and qualified workers in agriculture and livestock production as well as forestry, fishing and hunting.
  • Architects, engineers and similar technicians
  • Visual artists, actors and musicians
  • Auditors
  • Authors, journalists and linguists
  • CEOs and executive managers of companies
  • Directors of administrative and commercial services
  • Directors of production and specialised services
  • Directors of hotels, restaurants, shops and other services
  • Specialists in physical sciences, mathematics, engineering and related techniques
  • Information and Communication Technology Specialists
  • Doctors and dentists
  • Plant and machine operators and assembly workers, including fixed plant and machine operators
  • Teachers in university and higher education;
  • Psychologists
  • Liberal professions, technicians and asylees
  • Qualified industrial, construction and craft workers
  • Investors, directors and managers

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Other Contacts

Lamares, Capela & Associados provides its services to national and international individuals and companies.

Lisbon, Portugal

Get in touch with us for further information.

Lamares, Capela & Associados is committed to protecting and respecting your privacy and we will only use your personal information to manage your account and provide the products and services you have requested. Occasionally, we would like to contact you about our products and services and also about other matters that may be of interest to you.