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Non-habitual resident (NHR) is a special status aiming to attract professionals who carry out activities with high added value or intellectual property, who are not residents of Portugal as well as individuals benefiting from pensions earned abroad.
Generally speaking, under NHR regime:
- foreign income is tax exempt, provided that established conditions are met (i.e. double non-tax situation not admissible)
- local income is taxed at a special fixed rate of 20%
Fact sheet
- Program type
-
Offshore Income
Offshore Income residency programs require that you get a minimum income from offshore. Income can come from work or pension. You are usually not allowed to work for companies in the country under that program.
- Residency type
- Temporary residency (10 years)
- Minimum yearly income
- €12,000 ($14,284)
Requirements
The new NHR regime is available to all individuals becoming tax resident in Portugal if they were not Portuguese tax residents in the previous 5 years. That includes Portugal nationals' citizens living outside the country and who wish to return to Portugal.
Usually the permit is granted to those who can prove that they have a monthly regular income of at least €1,000 ($1,190) monthly.
Benefits
The status is granted for a period of 10 consecutive years.
- Non habitual residents will be subject to a reduced 20% income tax rate both on salaries and business and professional income of a Portuguese source arising from high added value activities of a scientific, artistic or technical nature.
- Non habitual residents will be exempt from income tax on salaries of a non Portuguese source if such salaries were subject to tax in the country of source under an existing Double Tax Treaty or, if no Tax Treaty exists, were subject to tax in another jurisdiction and are not considered as Portuguese source income under domestic rules.
- Rental income, investment income and capital gains of a non Portuguese source obtained by non habitual residents are also PIT exempt under the same conditions.
- Pensions paid abroad to non habitual residents are also PIT exempt if such pensions were subject to tax under an existing Double Tax Treaty or if the pension should not be considered as obtained in Portugal and related contributions did not allow a PIT deduction in Portugal.
Renewal
NHR status is valid for 10 years and NOT renewable.