Non-Habitual Residence (NHR) Tax Advice

The Portuguese Government first introduced Non-Habitual Residency (NHR) in 2009 in order to offer a tax break for individuals who move to Portugal and work in a ‘high value added’ profession such as a scientific or specialist technical role.

NHR residents can benefit from a 20% flat income tax rate for the first 10 years of residency and those who are retirees and expats may also benefit from the scheme with foreign income.

Our expert and professional team can work out whether you qualify for non-habitual residence in Portugal. We have strong links with the local tax departments and can manage everything on your behalf ensuring you a fully compliant and paying the right amount of tax in Portugal.

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FAQ

Non-Habitual Residency (NHR) is a tax regime that was introduced by the Portuguese Government in 2009. It is aimed at attracting new residents to Portugal by providing tax incentives for foreign income. This regime allows qualifying individuals to benefit from a flat income tax rate of 20% for certain types of foreign-sourced income. For more information, you can contact our trusted fiscal representatives in Portugal.

The Non-Habitual Residency (NHR) program in Portugal offers a tax exemption on foreign source income for qualified individuals, including those in high value added professions. This means they can benefit from a 10-year tax break on certain types of income. To qualify, individuals must be considered tax residents in Portugal and work in professions that are deemed to generate high value for the Portuguese economy.

NHR residents in Portugal benefit from a flat income tax rate of 20% for certain types of income. This benefit applies for a period of 10 consecutive years.

The NHR scheme in Portugal is open to individuals who have not been taxed as residents in Portugal over the past five years. This includes retirees and expatriates with foreign income, such as pensions, rental income, or dividends. NHR allows these individuals to benefit from tax exemptions on foreign-sourced income for a period of 10 years.

Our expert team at Portutax can assess an individual's eligibility for non-habitual residence in Portugal by evaluating their tax status, residency history, and specific qualifications outlined by the Portuguese tax authorities. We also take into account any applicable double tax treaties and provide personalized advice to ensure compliance with the NHR program.

Strong links with local tax departments are crucial in managing NHR applications as they ensure timely and efficient processing of the application. These links also provide access to up-to-date information and guidance on the NHR program, helping clients navigate the process smoothly. Lastly, these connections can help in resolving any potential issues or discrepancies that may arise during the application process.

NHR offers tax benefits to individuals in scientific or specialist technical roles, including a 20% flat tax rate for certain professions. It also allows for an exemption on foreign-sourced income for a period of 10 years. Additionally, NHR provides a great opportunity for professionals to live and work in Portugal while enjoying favorable tax conditions.

Portutax ensures full compliance and accurate tax payments for NHR clients in Portugal through our team of experienced fiscal representatives who are well-versed in Portuguese tax laws and regulations. We work closely with each client to understand their individual tax situation and provide personalized support to ensure all requirements are met. Our goal is to provide peace of mind and expert guidance to NHR clients, allowing them to fully benefit from Portugal's favorable tax regime.