Five Ways to Plan for a Post-NHR Future
21 Nov 2023
Recent political turmoil in Portugal has stirred a wave of uncertainty, particularly for expats living under the country's Non-Habitual Resident (NHR) scheme. Many are pondering their next steps with the NHR regime's future in question following the government's collapse and the call for elections. This scenario underscores the importance of planning, especially for those in the latter half of their 10-year NHR duration.
The Importance of Proactive Planning
For expats under the NHR scheme, the current political landscape necessitates a proactive approach to safeguard their financial future. Here are key steps to consider:
1: Seek Expert Tax Advice: Engaging with tax professionals who understand the intricacies of the NHR regime and the evolving tax landscape in Portugal is crucial. They can provide bespoke advice tailored to your unique situation.
2: Evaluate Your Financial Position: Take a comprehensive look at your finances, considering potential changes to the NHR benefits. Assess your income sources, investments, and tax liabilities within the changing Portuguese tax environment.
3: Explore Residency in Other Jurisdictions: Given the uncertainty, it's wise to consider alternative residency options. Researching and understanding the tax regimes of other countries can provide a backup plan should the NHR regime undergo unfavourable changes.
4: Stay Informed and Adaptable: Keep abreast of the latest developments in Portuguese politics and tax laws. This knowledge will allow you to adapt your financial planning as new information emerges.
5: Plan for Post-NHR Taxation: Begin strategising for the eventuality of your NHR status expiring. This might involve restructuring your assets or reassessing your tax planning strategies to align with Portugal's standard tax regime.
The current political climate in Portugal presents a unique challenge for expats under the NHR scheme. The need for strategic planning and consultation with tax experts has never been more critical. By taking proactive steps and staying informed, expats can navigate this period of uncertainty with greater confidence and secure their financial well-being in Portugal.
Disclaimer: This article was written for Portuutax, a member of the Gibro Group of businesses. It provides general information and is not a substitute for professional financial advice. Portutax does not offer legal services. For personalised guidance, consult with a qualified expert.
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