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We are able to help you establish your tax residency in Portugal under the non-habitual residency – NHR – regime.

NHR Status Portugal

The Non-Habitual Residency (NHR) is an attractive scheme in Portugal that allows those who qualify to benefit from a decade of generous tax breaks. One of the attractions of NHR is that (most) income from foreign sources is exempt from Portuguese taxation for ten consecutive years. This means that you could potentially receive rental income, capital gains on real estate, dividends and non-Portuguese employment income exempt of taxation in Portugal and a possible double exemption, both in Portugal as well as the country where the income is paid. Does it sound too good to be true?

Migrate To Portugal?

You may have considered moving to Portugal for a lifestyle change; excellent climate, great food and a lower cost of living. Besides a better quality of life did you know that Portugal also offers a very attractive regime to newly resident individuals?

Retire In Portugal?

What about pension income? If you are in receipt of pension income from a foreign source, it will be exempt from Portuguese income tax, if the pensions are subject to tax under an existing double tax treaty or if the pension income is not considered as obtained in Portugal and the contributions to the scheme did not give rise to a tax deduction. Since most double tax treaties give exclusive taxation rights to the country of residence in effect your pension income could theoretically end up being tax exempt.

Key Benefits

  • Flat rate of 20% on Portuguese earned income from qualifying activities and exemption from almost all foreign sourced income.
  • Tax exemptions on gifts and inheritance tax to spouse, children or family with non-related benefactors being either tax exempt or subject to a flat stamp duty tax rate of 10%.
  • No wealth tax and free remittance of funds either to or from Portugal.
  • Beneficial treatment for pensions and life contracts including unit linked investments which further reduces the effective tax burden.

The Non-Habitual Residence regime also allows for the accrual of wealth in a tax friendly environment save for blacklisted tax havens and to dispose of assets with tax exemptions as well as to transfer wealth to the next generation without being subject to either inheritance or gift tax.

Non Habitual Residency Portugal Guide Image

Talk to Us

Speak directly to an expert in non-habitual residency about how to get residency in Portugal under the NHR status. To take full advantage of the current opportunities it would be sensible to receive professional advice from cross border specialists.

For further information please contact us on Tel: +44 207 998 0570 or email enquiries@fwm.gi