Updated: March 14, 2024

 

The Non-Habitual Resident (NHR) Tax program in Portugal is a popular tax scheme that provides foreign residents or investors residing in Portugal with lower tax rates and exemptions on certain taxes. Launched in 2009 and later updated and improved in 2020, the tax regime aims to attract foreign investors from all across the world to become Portuguese tax residents and invest in the country.

Over the years, more than 10,000 citizens from various countries have already applied for this program and are currently enjoying the benefits of the scheme as NHR tax residents. So, if you are looking to optimize your tax planning and investments, you can apply for the Portugal NHR scheme.

 

March 2024: Latest Updates to the NHR Program

In October 2023, the Portuguese Prime Minister announced his intention to end the NHR program. As such, the State Budget Law for 2024 dictated the termination of the NHR regime, with complete closure to new applicants expected by the end of May 2025. With this said, individuals already enrolled before this date will retain program benefits for a ten-year period.

During the transitional period, there’s an opportunity for individuals to qualify under the existing NHR program. Those who became tax residents in 2023 and who have not been tax residents in Portugal for the previous five years can apply until 31 March 2024.

Alternatively, stricter eligibility criteria apply for applications until 31 March 2025, the requirements of which can be found below. Individuals will only have to fulfil one of the following criteria to be eligible. 

  • Having a promissory or employment contract signed by December 31, 2023 
  • Having a lease agreement or other contract for the use/possession of property signed by October 10, 2023 
  • Having a reservation or promissory contract to buy property in Portugal signed by October 10, 2023 
  • Having children enrolled or registered in a school in Portugal by October 10, 2023 
  • Having a residence visa or a residence permit valid from December 31, 2023
  • Having an application for a residence visa or residence permit initiated by December 31, 2023
  • Being a member of the household of someone who meets the above criteria 

Successful applicants will hold NHR status from their tax residency start date until December 31, 2033.

Will the NHR program be replaced?

The Tax Incentive for Scientific Research and Innovation, informally referred to as the NHR 2.0, presents similar benefits to the original NHR program, albeit with stricter criteria.

To be eligible for the Tax incentive for the Scientific Research and Innovation program, requirements are as follows:  

  • Become tax residents in Portugal 
  • Have not been residents of Portugal in the previous five years 
  • Earn income in certain professional categories 

The eligible professional categories are as follows:

  • Teachers and scientists 
  • Those in qualified jobs, as specified in the Tax Code, shown below
  1. Activities carried out within the scope of the extractive industry and manufacturing industries  
  2. Tourism, including activities that are of interest to tourism  
  3. IT and related activities and services  
  4. Agricultural, aquaculture, fish farming, farming and forestry activities  
  5. Research and development, in addition to high technological intensity activities  
  6. Audiovisual and multimedia production  
  7. Defense, environment, and energy 
  8. Telecommunication and activities of shared service centers 
  • Highly qualified professionals: This refers to individuals or entities engaged in one or more of the activities mentioned above within a qualifying organization. 
  • Members of corporate bodies that carry out economic activities  
  • Those employed by companies that are recognized by relevant government agencies, such as AICEP, EPE, IAPMEI, and IP, or that are relevant to the national economy (e.g., working with investment, etc.) 
  • Research and development personnel who meet the definitions of the tax code 
  • People working for startups, certified by law as such 
  • Individuals who work in Madeira or the Azores who meet the criteria set by these regions 

Note: Exclusions include NHR beneficiaries and Regressar Program beneficiaries.

The NHR Portugal Tax Regime

The Portugal Non-Habitual Resident Tax regime is designed to appeal to individuals across the globe.

The tax scheme aims to boost Portugal’s economy in return for offering reduced tax rates. The regime in Portugal was first initiated in 2009 and ensures considerable tax benefits for eligible applicants.

In certain cases, this scheme grants a 20 percent tax rate on income and also allows tax exemptions for private-sector pensioners. As we mentioned, owing to its benefits and popularity, there are more than 10,000 NHR tax residents in Portugal.

If you are looking to move to Portugal, you can check out our article on the cost of living here: Cost of Living in Portugal.

NHR Portugal benefits

  • NHR taxYou become a tax resident in Portugal (a white-listed EU country)
  • You enjoy special tax benefits for ten years
  • There is no wealth tax
  • Free remittance of funds to Portugal
  • Tax exemption on all foreign income
  • 20 percent flat rate on some Portuguese income
  • Tax exemption on gifts for family members
  • There is no minimum stay requirement

Portugal NHR and double taxation agreements

Portugal’s NHR relationship with Double Taxation Agreements (DTAs) is one of the key highlights of the Portugal NHR program. Under a Dobule Tax Agreement, most categories of your income are taxed in the country of the source of income. However, in most cases, countries do not levy personal income tax on non-residents as they want to make their jurisdictions open for foreign investments.

Similarly, Portugal, under the NHR tax regime, does not tax foreign-sourced income of non-habitual tax residents as their income is already taxed in the source country. This makes it lucrative for foreign investors to invest in Portugal as they can obtain foreign income tax-free if their country of origin has a Double Tax Agreement with Portugal.

Currently, Portugal has signed a Double Taxation Agreement with 79 countries. In other circumstances, the Organization for Economic Co-operation and Development (OECD) model tax convention can be used to determine the application of taxes.

Here is a list of countries that have Double Tax Agreement (DTA) with Portugal:

Algeria

Austria

Andorra

Bahrain

Barbados

Brazil

Bulgaria

Canada

Cape Verde

Chile

China

Colombia

Croatia

Cuba

Cyprus

Czech Republic

Denmark

East-Timor

Estonia

Ethiopia

Finland

France

Germany

Georgia

Greece

Guinea-Bissau

Hong Kong

Hungary

Iceland

India

Indonesia

Ireland

Israel

Italy

Ivory Coast

Japan

Kuwait

Latvia

Lithuania

Luxembourg

Macau

Malta

Mexico

Moldova

Montenegro

Morocco

Mozambique

Netherlands

Norway

Oman

Pakistan

Panama

Peru

Poland

Romania

Russia

San Marino

São Tomé and Príncipe

Saudi Arabia

Senegal

Singapore

Slovakia

Slovenia

South Africa

South Korea

Spain

Qatar

Sweden

Switzerland

Tunisia

Turkey

United Arab Emirates

United States of America

United Kingdom

Ukraine

Uruguay

Venezuela

Vietnam

 

NHR Portugal: Eligibility

Non-Habitual Resident Portugal requirements are the following:

  • The applicant must be a resident of Portugal. This can be either through the Portugal Golden Visa program by being an EU/EEA/Swiss citizen, or by having a D7 Visa, amongst other valid visa types.
  • The applicant must not have been a Portuguese tax resident in the five years before obtaining a residence permit in Portugal.
  • Applicants must note that to maintain their residence permit in Portugal, the individual must have a place to stay in Portugal as of 31 December of that year. The home must also be habitual.

Tax under the NHR Portugal Tax Regime

Under the Portugal NHR tax regime, highly-valued professionals are given special tax exemptions as they are valued highly in Portugal.

The following NHR list of professions mentions professionals that are considered of high value in Portugal and can apply for NHR status in Portugal as a tax resident.

NHR Portugal high value activities:

  • Double tax Agreements PortugalMedical physiatrists
  • Doctors
  • University lecturers
  • Psychologists
  • Archaeologists
  • Biologists and life science experts
  • Computer programmers
  • Software consultants
  • Computer consultants and related services
  • News agencies
  • Other information and service activities
  • Scientific research and development
  • Research and experimental development in natural sciences and engineering
  • Research and development in biotechnology
  • Designers
  • Investors
  • Managers
  • Directors
  • Higher management

NHR Portugal Tax Rates on Foreign-sourced Income

Owing to DTAs, NHR tax residents in Portugal are fairly tax exempt. If a resident is receiving income from a country that has a double taxation agreement with Portugal, then they will not be taxed in Portugal.

Employment income tax

Under the NHR tax regime in Portugal, foreign source income is tax exempt or is taxed at a low rate of 20 percent if it comes under the list of qualified professions.

Self-employment income tax

  • The income is taxed at a normal progressive rate unless it comes under the eligible profession category.
  • This income is subjected to social security contributions unless the resident already contributes to another social security system.
  • It is optionally taxed at a flat rate of 20 percent. A tax resdient can choose to pay the usual progressive rate if the amount is less than this.
  • Tax exempt if the money earned is from an eligible profession and comes from a foreign country with a DTA with Portugal.

Royalties and income from financial assets

  • You will be tax exempt if your income source is from a country that has a DTA with Portugal.
  • You will be tax exempt if your foreign source income is not from a country with a DTA but is not a blacklisted tax haven.
  • If your foreign source income is from a country that is a blacklisted tax haven, then tax will be levied at 28 percent or 35 percent.

Tax on Real estate income and capital gains

Consider the following when it comes to tax on real estate income and capital gains.

  • You will be tax exempted if your real estate income or capital gains comes from a country with a DTA.
  • You will be exempted from paying tax if your real estate income/capital gains are from a country without a DTA but is not a blacklisted tax haven.

NHR Portugal capital gains from the disposal of securities

  • Tax is levied on capital gains from the disposal of securities like shares, bonds, etc., at an optional rate of 28 percent or 35 percent if the source of gain is from a blacklisted tax haven.

Pension income tax

  • Since March 2020, pension income is taxed at a flat rate of 10 percent.

Tax on Portuguese Source Income Under the NHR Tax Regime

Employment income Tax

If your employment falls under the eligible professions category, then tax is payable at the usual progressive tax rates.

If your employment is categorized under one of the qualified NHR tax regime professions, then you will need to pay an optional tax rate of 20 percent. Otherwise, you can also pay the usual progressive tax rates, which are less.

Self-employment income tax

If your employment falls under the eligible professions category, then tax is payable at the usual progressive tax rates.

If your employment is one of the qualified NHR tax regime professions, then you need to pay an optional tax rate of 20 percent. Otherwise, you can also pay the usual progressive tax rates.

Real estate income and capital gains

You need to pay a rental income tax charged at an optional rate of 28 percent, or you can pay by the usual progressive tax rates.

Net capital gains are taxed at 50 percent, which is charged per the usual progressive rates.

Pension income tax

Pension income tax is usually taxed at 10 percent.

Portuguese tax table

INCOME (€)

TAX RATES (%)

BAND (€)

TAX ON BAND (€)

CUMULATIVE TAX (€)

0 - 7,091

14.5

7,091

1,028

1,028

7,092 - 10,700

23

3,608

830

1,858

10,702 - 20,261

28.5

9,561

2,725

4,583

20,262 - 25,000

35

4,738

1,658

6,241

25,001 - 36,856

37

11,655

4,386

10,627

36,857 - 80,640

45

43,783

19,702

30,329

Over 80,640

48

-

-

-

 

NHR Tax Regime: Application Process

Here is a step-by-step guide on the application process for the NHR tax regime in Portugal.

Step 1 – Proof of residency

As a first step, you first need to prove that you have the legal right to reside in Portugal.

NHR Portugal for EU citizens

If you are a citizen of the EU/EEA or Switzerland, you can register without a visa. You can complete your registration for residency in the city hall of your municipality (Câmara Municipal). Make sure to bring your passport and European Health Insurance Card (EHIC) for the procedure.

NHR Portugal for non-EU citizens

If you are a non-EU citizen, you must first obtain a residence permit so that you are able to reside in Portugal. You can either obtain the permit through the Portugal Golden Visa Program or through the route of Passive income (D7 Visa). You can obtain residency online, or you can contact your country’s Portuguese Embassy.

Step 2 – Obtain NIF number (Portuguese tax identification number) and register as a tax resident in Portugal

If you are planning to initiate a business in Portugal or any other legal or financial activity, you need to obtain an NIF number. The NIF number is a nine-digit tax identification number that non-residents can get through their representatives/lawyers in Portugal. If you are a resident of Portugal, then you can obtain it directly from a local tax office. You need to carry your ID card/passport and proof of residency. You can also get an NIF online before moving to Portugal, using services such as GetNifPortugal.

Once you obtain your NIF number, you should register yourself as a tax resident in Portugal in your nearest Finanças (finances office).

Step 3 – Application for NHR tax regime

After you complete all the processes, you must register at the corresponding government website. For your registration process, you will need a NIF number, email address, phone number, and fiscal address. Once your registration is done, you will get a password by post within two weeks. You can then visit the application site to complete your application. You will need to share the following documents:

  • A document that mentions that you were not a tax resident in Portugal in the last five years
  • Your last five years’ tax returns
  • Your rental agreement or a deed of a property in Portugal

Things to Keep in Mind

NHR RequirementsIn order to apply for the NHR regime in Portugal, you need to first register yourself as a resident of Portugal.

  • Applicants for the NHR Portugal tax regime must have proof of habitual residence by 31 December, and the application needs to be submitted before 31 March.
  • You will need to wait for around two weeks for the approval/rejection of your application.
  • The NHR status in Portugal is granted for a period of ten years. You are considered a non-habitual resident from the date on which you become a resident of the country.

NHR Regime for UK Citizens

Since Portugal has a double taxation agreement with the United Kingdom, the taxation for British citizens remains the same under the NHR tax regime. The Portuguese government has mentioned that British citizens living in Portugal as residents will continue to exercise all their rights after Brexit.

NHR Regime for US Citizens

If you are a citizen of the United States, then you can apply for the NHR Tax regime. To obtain NHR tax status, you need to live abroad, you should not have been a resident in Portugal within the last five years, and you should want to live in Portugal. To register yourself as a resident in Portugal, you will need to stay in the country for 183 days a year or should have a primary home there.

Portugal Golden Visa Program

The Portugal Golden Visa program was launched in 2012 and remains one of the most popular and attractive residency-by-investment programs in the world. This five-year residency permit program offers non-EU residents residency in the country in return for an economic investment.

Portugal Golden Visa: Benefits

  • Portugal-Golden-VisaYou can obtain residency in return for a minimum investment of €250,000
  • You can qualify for a European passport after five years of residency. With Portuguese citizenship, you can enjoy visa-free travel to 174 countries.
  • The country has a thriving economy and offers a lucrative real estate market.
  • You have the option to become a non-habitual resident and enjoy tax exemptions.
  • The stay requirement is very short
  • You can include your family in your Golden Visa application

Benefits for family members

One of the most attractive benefits of the Portugal Golden Visa program is that you can include your family members while applying for a resident permit in Portugal. The Portugal Golden Visa offers a second residency in Portugal and provides an array of benefits to the applicant as well as their family members.

You can include the following family members in your application for the Portugal Golden Visa:

  • Your spouse or your legal partner.
  • Your children under the age of 18.
  • Dependent children under the age of 26 as long as they are single and enrolled as full-time students or can prove that they are financially dependent on their parents.
  • Parents of either spouse, if over the age of 66 (or 55 and dependent on the applicant).
  • Siblings under the age of 18 from either spouse or the partner if they are legal guardians, as determined by the courts.

Portugal Golden Visa: Requirements

An applicant needs to meet the following criteria to be eligible for the Portugal Visa Program:

  • The applicant needs to be either non-EU, non-EEA citizen, or non-Swiss.
  • The applicant should make a minimum investment of €250,000. They can choose from the various investment routes that are available.
  • The applicant should have no criminal record.
  • The applicant should spend a minimum of seven days in Portugal for the first year, then no less than 14 days each subsequent two-year period – this is the minimum stay requirement.

Portugal Golden Visa Processing Time

The processing time for your Portugal Golden Visa application is relatively short.

Year 0 – Portugal Golden Visa is issued, which is valid for two years

Year 2 – The residence permit needs to be renewed. After renewal, it is again valid for two years

Year 4 – The residence permit needs renewal and is valid for the next two years

Year 5 – You can request both permanent residence or citizenship, or you can renew your Golden Visa in year 6

Portugal Golden Visa Application Timeline

Step 1: Onboarding

After you decide on your investment route for the Portugal Golden Visa, you must start collecting the necessary documents for yourself and the paperwork of dependents included in your application.

Step 2: Bank account and NIF

You must get your NIF number (Tax Identification Number) in Portugal. Note that you will need to have a fiscal representative to get an NIF number in Portugal. Once you obtain your NIF number, you can then proceed to open your bank account at one of your preferred banks in Portugal.

NHR Application TimelineStep 3: Make the investment

You can make your investment through your preferred investment route. Your agency can help you collect and submit all paperwork for your investment to ensure a smooth investing experience.

Step 4: Online application

You need to submit your Golden Visa application online.

Step 5: Pre-approval

If you meet all the requirements, your application will be pre-approved.

Step 6: Biometrics

After you book your interview, it will take you around two months to attend a biometrics session in person. Note that this process can take longer in certain situations.

Step 7: Issue of Golden Visa

Once your biometrics are collected, it takes around four months to get your Golden Visa approved by SEF. After you pay the government permit issue fee, you can then obtain your residence permit.

 

Portugal Golden Visa: Investment Options

To obtain a residence permit in Portugal, you need to make an economic investment in the country. The thriving economy of the country attracts foreign investors from all around the world to invest in Portugal. Investment options include the following:

Fund subscription

You can make a minimum contribution of at least €500,000 to a qualified investment fund.

Scientific research

You can contribute a minimum amount of €500,000 to Science and Technology research.

Job creation

Company incorporation and creation of ten jobs that will amount to the value of at least €500,000.

Donation

You can support the arts or reconstruction of national heritage by making a minimum investment of €250,000. This is reduced to €200,000 if investing in a low-density area.

Important note: Recently, Portugal updated its Golden Visa Program and rolled out certain changes, especially in the investment criteria section. You can find out more here.

Portugal Golden Visa: Documents Required

  • Portuguese Golden Visa application formDocuments required for the NHR Program
  • Your copy of a valid passport and travel documents
  • Deed or contract of the purchased property or signed promissory contract with proof of your deposit payment
  • Declaration from your bank in Portugal authenticating the transfer of funds
  • Health Insurance proof in Portugal (only required if you reside in Portugal)
  • Certified copy of your criminal certificate or a police clearance letter from your country of origin
  • A completed form allowing SEF (Serviço de Estrangeiros e Fronteiras) to get a copy of your Portuguese criminal records
  • Declaration from you confirming compliance with the investment requirements
  • Documents showing a good relationship with the Portuguese Tax and Customs Authority and Social Security systems. These can be issued 45 days prior to your online application.
  • A receipt as proof that you paid the application processing fee

An applicant must note that the certificates of criminal records or police clearance letters should have been issued no more than 90 days before submitting the application. For all other certificates for submission, the timeline is 180 days.

Legalizing Portuguese Golden Visa documents

All your Portugal Golden visa documents and the application form must be legalized and translated into Portuguese with the help of a certified translator. You must note that your documents can be legalized either by the Portuguese Consulate or by the Apostille of The Hague Convention.

Translation of Portugal Golden Visa documents

In addition to your original documents, you also need to submit a copy of your documents translated into Portuguese. This can be done in the following ways:

  • It can be translated by a translator who is accredited by the Portuguese Consulate.
  • By getting the translation certified by a Portuguese lawyer.
  • By the issuing country’s consulate in Portugal.

Non Habitual Resident Portugal Tax Calculator

You can calculate your NHR tax based on your income in our Portugal NHR tax calculator.

INCOME (€)

TAX RATES (%)

BAND (€)

TAX ON BAND (€)

CUMULATIVE TAX (€)

0 - 7,091

14.5

7091

1028

1028

7,092 - 10,700

23

3608

830

1858

10,702 - 20,261

28.5

9561

2725

4583

20,262 - 25,000

35

4738

1658

6241

25,001 - 36,856

37

11655

4386

10627

36,857 - 80,640

45

43783

19702

30329

Over 80,640

48

-

-

-

 

Portugal Visa-Free Countries

COUNTRY

REQUIREMENTS

Afghanistan

visa required

Albania

visa-free/90 days

Algeria

visa required

Andorra

visa-free

Angola

pre-visa on arrival

Antigua and Barbuda

visa-free/180 days

Argentina

visa-free/90 days

Armenia

visa-free/180 days

Australia

eTA/90 days

Austria

visa-free

Azerbaijan

eVisa/30 days

Bahamas

visa-free/90 days

Bahrain

visa on arrival / eVisa/30 days

Bangladesh

visa on arrival/30 days

Barbados

visa-free/90 days

Belarus

visa-free/30 days

Belgium

visa-free

Belize

visa-free

Benin

eVisa

Bhutan

visa required

Bolivia

visa-free/90 days

Bosnia and Herzegovina

visa-free/90 days

Botswana

visa-free/90 days

Brazil

visa-free/90 days

Brunei

visa-free/90 days

Bulgaria

visa-free

Burkina Faso

visa on arrival/30 days

Burundi

visa on arrival/30 days

Cambodia

eVisa/30 days

Cameroon

visa required

Canada

eTA/180 days

Cape Verde

visa-free (EASE)/30 days

Central African Republic

visa required

Chad

visa required

Chile

visa-free/90 days

China

visa required

Colombia

visa-free/90 days

Comoros

visa on arrival/45 days

Congo

visa required

Congo (Dem. Rep.)

eVisa/90 days

Costa Rica

visa-free/90 days

Cote d'Ivoire (Ivory Coast)

pre-enrollment/90 days

Croatia

visa-free

Cuba

tourist card/30 days

Cyprus

visa-free

Czech Republic

visa-free

Denmark

visa-free

Djibouti

eVisa

Dominica

visa-free/180 days

Dominican Republic

visa-free

Ecuador

visa-free/90 days

Egypt

visa on arrival / eVisa/30 days

El Salvador

visa-free/90 days

Equatorial Guinea

visa required

Eritrea

visa required

Estonia

visa-free

Eswatini

visa-free/30 days

Ethiopia

visa on arrival / eVisa

Fiji

visa-free/120 days

Finland

visa-free

France

visa-free

Gabon

visa on arrival / eVisa/90 days

Gambia

visa-free/90 days

Georgia

visa-free/360 days

Germany

visa-free

Ghana

visa required

Greece

visa-free

Grenada

visa-free/90 days

Guatemala

visa-free/90 days

Guinea

eVisa/90 days

Guinea-Bissau

visa on arrival / eVisa/90 days

Guyana

visa-free/90 days

Haiti

visa-free/90 days

Honduras

visa-free/90 days

Hong Kong

visa-free/90 days

Hungary

visa-free

Iceland

visa-free

India

eVisa/30 days

Indonesia

visa on arrival/30 days

Iran

eVisa/30 days

Iraq

visa on arrival/60 days

Ireland

visa-free

Israel

visa-free/90 days

Italy

visa-free

Jamaica

visa-free/30 days

Japan

visa required

Jordan

visa on arrival

Kazakhstan

visa-free/30 days

Kenya

eVisa/90 days

Kiribati

visa-free/120 days

Kosovo

visa-free/90 days

Kuwait

eVisa/90 days

Kyrgyzstan

visa-free/60 days

Laos

visa on arrival / eVisa/30 days

Latvia

visa-free

Lebanon

visa on arrival/30 days

Lesotho

visa-free/14 days

Liberia

visa required

Libya

visa required

Liechtenstein

visa-free

Lithuania

visa-free

Luxembourg

visa-free

Macao

COVID-19 ban

Madagascar

visa on arrival / eVisa/90 days

Malawi

visa on arrival / eVisa/30 days

Malaysia

visa-free/90 days

Maldives

visa on arrival/30 days

Mali

visa required

Malta

visa-free

Marshall Islands

visa-free/90 days

Mauritania

visa on arrival

Mauritius

visa-free/90 days

Mexico

visa-free/180 days

Micronesia

visa-free/90 days

Moldova

visa-free/90 days

Monaco

visa-free

Mongolia

eVisa/30 days

Montenegro

visa-free/90 days

Morocco

visa-free/90 days

Mozambique

visa on arrival/30 days

Myanmar [Burma]

eVisa

Namibia

visa-free/90 days

Nauru

visa required

Nepal

visa on arrival/90 days

Netherlands

visa-free

New Zealand

eTA/90 days

Nicaragua

visa-free/90 days

Niger

visa required

Nigeria

pre-visa on arrival

North Korea

visa required

North Macedonia

visa-free/90 days

Norway

visa-free

Oman

visa on arrival / eVisa/14 days

Pakistan

eVisa

Palau

visa-free/90 days

Palestinian Territories

visa-free

Panama

visa-free/90 days

Papua New Guinea

visa on arrival / eVisa/60 days

Paraguay

visa-free/90 days

Peru

visa-free/90 days

Philippines

visa-free/30 days

Poland

visa-free

Qatar

visa-free/90 days

Romania

visa-free

Russian Federation

visa required

Rwanda

visa on arrival / eVisa/30 days

Saint Kitts and Nevis

visa-free/90 days

Saint Lucia

visa-free/90 days

Samoa

visa-free/90 days

San Marino

visa-free

Sao Tome and Principe

visa-free/15 days

Saudi Arabia

visa on arrival / eVisa/90 days

Senegal

visa-free/90 days

Serbia

visa-free/90 days

Seychelles

tourist registration/90 days

Sierra Leone

visa on arrival/30 days

Singapore

visa-free/90 days

Slovakia

visa-free

Slovenia

visa-free

Solomon Islands

visa-free/90 days

Somalia

visa on arrival/30 days

South Africa

visa-free/90 days

South Korea

eTA/60 days

South Sudan

eVisa

Spain

visa-free

Sri Lanka

eTA/30 days

St. Vincent and the Grenadines

visa-free/30 days

Sudan

visa required

Suriname

eTourist card/90 days

Sweden

visa-free

Switzerland

visa-free

Syria

visa required

Taiwan

visa-free/90 days

Tajikistan

visa-free/30 days

Tanzania

visa on arrival / eVisa

Thailand

visa-free/30 days

Timor-Leste

visa-free/90 days

Togo

visa on arrival/7 days

Tonga

visa-free/90 days

Trinidad and Tobago

visa-free/90 days

Tunisia

visa-free/90 days

Turkey

visa-free/90 days

Turkmenistan

visa required

Tuvalu

visa-free/90 days

Uganda

eVisa

Ukraine

visa-free/90 days

United Arab Emirates

visa-free/90 days

United Kingdom

visa-free/180 days

United States of America

eTA/90 days

Uruguay

visa-free/90 days

Uzbekistan

visa-free/30 days

Vanuatu

visa-free/90 days

Vatican City

visa-free

Venezuela

visa-free/90 days

Viet Nam

eVisa/30 days

Yemen

visa required

Zambia

visa on arrival / eVisa/90 days

Zimbabwe

visa on arrival/90 days

 

Goldcrest: How We Can Help You

Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team is here to discuss your needs, assist you with your real estate doubts, and offer insightful expertise and strategic advice. We are focused on securing the best deal for you.

Frequently Asked Questions about the NHR Portugal Program

Who can qualify for the Non-Habitual Resident program in Portugal?

Non-Habitual Resident Portugal requirements are the following: 

  • The applicant must be a resident of Portugal. 
  • The applicant must not have been a tax resident in Portugal in the five years before obtaining a residence permit in Portugal. 
  • Applicants must note that to maintain their residence permit in Portugal, the individual must have a place to stay in Portugal as of 31 December of that year. The home must also be habitual.

Professionals from various walks of life, like freelancers, pensioners, business owners, and other professionals of high cultural or economic value, can apply for the NHR scheme in Portugal. Successful applicants can secure a tax exemption on foreign income, plus many more benefits. 

There are three types of taxes that are levied on property in Portugal:

  • Municipal property tax (IMI)
  • Real estate transfer tax (IMT)
  • Stamp duty (IS)

There is no tax levied on wealth in Portugal. The fact that there is no wealth tax is an additional attraction to foreign investors and expats.

Like inheritance tax, spouses, direct descendants, and ascendants do not have to pay gift tax in Portugal. You need to pay a 10 percent stamp duty on Portuguese assets and an additional rate of 0.8 percent on real estate.

You need to submit all required documents that prove your residency in Portugal, along with your Portuguese tax number. You will need to have tax residency in Portugal to qualify for the program Once you fulfill all criteria under the NHR tax regime, you can apply to obtain the NHR tax status in Portugal.

The Non-Habitual Resident (NHR) tax program in Portugal is a popular tax scheme that provides foreign residents or investors with tax residency in Portugal with lower tax rates and exemptions on certain taxes, provided they are a tax resident in Portugal and meet certain other criteria. 

The NHR scheme allows for generous tax exemptions. The Portugal NHR requirements are as follows:

  1. The applicant must hold residency in Portugal, which can be achieved through the Portugal Golden Visa program, being a citizen of an EU/EEA/Swiss country, or possessing a valid visa type such as the D7 Visa.
  2. The applicant should not have been a tax resident in Portugal for the five years preceding the acquisition of a residence permit in the country.
  3. It is important for applicants to take note that in order to maintain their residence permit in Portugal, they must have a place of residence in Portugal by 31 December of that particular year. The residence should also be their primary and regular place of dwelling.

After ten years of NHR tax residency, you will lose your non-habitual tax resident status and the tax benefits associated with it and pay tax at standard Portuguese rates.

Regarding tax residency in Portugal, as per the Portuguese tax legislation implemented in January 2015, an individual is considered a tax resident in Portugal if they fulfill either of the following requirements: They spend over 183 days, whether consecutive or not, in Portugal within a 12-month timeframe that begins or ends within the relevant fiscal year. If they fulfil these criteria, they will have tax residency in Portugal. 

The submission deadline for the application is 31 March of the year after the one in which individuals establish tax residency in Portugal. Concerning the application processing time, typically, the Tax Authority requires around two weeks to reach a decision regarding eligibility for the NHR scheme. You will need to be a new tax resident in Portugal to apply for NHR status in Portugal.

No, Portugal does not have 0 percent personal income tax. In 2023, individuals who are considered tax residents in Portugal are subject to progressive tax rates ranging from 14.5 percent to 48 percent on their global income. However, as a tax resident in Portugal, under the NHR program, you can receive significant tax benefits for up to ten years, provided you meet certain criteria. The country also has a Double Tax Agreement with many countries, which is evidently an advantage when it comes to personal income tax across tax jurisdictions.

Currently, Portugal has signed a Double Tax Agreement with 79 countries, including the USA and the UK. Under a Double Tax Agreement, most categories of your income are taxed in the country of the source of income. However, in most cases, countries do not levy personal income tax on non-residents as they want to make their jurisdictions open for foreign investments.

When it comes to pension tax, foreign pension income tax is usually taxed at 10 percent in Portugal.

For Non Habitual Residents, there is no inheritance tax in Portugal.

The Non-Habitual Residency (NHR) program is nearing its end, with different application deadlines for individuals depending on their tax residency status and meeting other criteria. Some have until March 31, 2024, while others have until March 31, 2025, to apply. Following the conclusion of the NHR program, the Tax Incentive for Scientific Research and Innovation Program will be introduced, providing similar benefits but with stricter criteria.

The Tax Incentive for Scientific Research and Innovation Program is set to supersede the existing NHR scheme. Eligibility for the new program will require individuals to earn income in designated professional sectors such as teaching, scientific research, and development. Under this initiative, a consistent tax rate of 20 percent will be levied on professional earnings within Portugal, coupled with exemptions on various types of income sourced from abroad, including dividends, interest, capital gains, and rents. Note that the new regime will not include pensions.