Non-Habitual Residency

Portugal's non-habitual resident regime: requirements and benefits

Have you ever thought about moving to Portugal? This country has one of the most attractive tax regimes in Europe, offering generous tax benefits for high-net-worth individuals.

Who may apply for non-habitual resident status?

This regime is valid for foreign individuals of any nationality and for Portuguese citizens who live outside the country and intend to return to Portugal.

Citizens who are taxpayer's resident in Portugal and have not been a Portuguese tax resident in the five years before taking up residence in Portugal can also benefit from this regime.

To be considered resident in Portugal, you must stay at least 183 days a year in Portugal or having a house there, demonstrating the intention to occupy it as your permanent residence.

What are the benefits of this regime?

  • IRS tax-exemptions on almost all foreign source income - valid for business income, pensions, and employment income, among others.
  • Special flat tax rate of 20% on Portuguese source income – this benefit applies to the income from high added value activities, which includes directors, investors, auditors, teachers, artists, engineers, among others.
  • This regime is granted over a consecutive 10-year period.

How can I apply for non-habitual resident status?

You should:

  • Apply for the regime of "non-habitual resident" at Autoridade Tributária e Aduaneira.
  • Submit a declaration stating that you have not been a tax resident in Portugal in any of the previous five years.

If there is evidence of lack of honesty, you may have to submit certificates of tax residence and annual income statements to certify residency abroad.

If you are interested, please contact us to know more about this regime.

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