Updated: May 30, 2023

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 residents of Portugal 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. So, if you are looking to optimize your tax planning and investments, you can apply for the Portugal NHR scheme. 

The NHR Portugal Tax RegimeNHR Tax

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 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 of the program

  • You 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 agreementsDouble tax Agreements Portugal

Portugal’s NHR relationship with Double Taxation Agreements (DTAs) is one of the key highlights of the Portugal NHR program. Under DTAs, most categories of your income are taxed in the country of the source of income. However, in most cases, countries do not levy 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 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.

Currently, Portugal has signed Double Taxation Agreements 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 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: EligibilityEligibility for the NHR Program

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 or 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 also must 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 list mentions the professionals who are considered of high value in Portugal:

  • Medical 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

Tax on Foreign Source Income Under the NHR Tax Regime

Owing to DTAs, NHR residents in Portugal are fairly exempt from taxation. 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 exempted from tax 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. Residents can choose to pay the usual progressive rate if the amount is less than this.
  • Tax-exempted 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 exempted from tax if your income source is from a country that has a DTA with Portugal.
  • You will be exempted from tax 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

  • 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.

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

This type of income is usually taxed at 10 percent.

Portuguese tax table for 2023

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.

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.

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 a 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 a 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 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

In 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 Residents

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 ProgramPortugal-Golden-Visa

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.

Important note: The Portugal Golden Visa program is coming to an end. If you are interested in applying for the program, you should begin your application now. You can read our article Portugal Golden Visa Ending to stay updated on the developments. 

Portugal Golden Visa: Benefits

  • You 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: RequirementsNHR 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 TimelineNHR 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 a NIF number in Portugal. Once you obtain your NIF number, you can then proceed to open your bank account. You can get a NIF number and open your bank account remotely with the help of an immigration agent.

The following allows you to get a NIF and open a bank account before you arrive in Portugal, helping make the relocation process as simple as possible. 

Step 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

Investment Options NHR Program PortugalTo 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: 

Residential real estate

You can purchase residential real estate in designated interior areas of Portugal that cost a minimum of €500,00,0 or €350,000 if you are investing in a rehabilitation project. If your residential property is located under the ‘low density’ area category, then a 20 percent discount will apply. You can learn more by reading our article: Low Density & Interior Eligible Areas for the Portugal Golden Visa 2023.

Commercial real estate

You need to invest a minimum of €500,000 if you are planning to purchase a commercial real estate. There are no location restrictions if investing in commercial property. If you are investing in a rehabilitation project, you need to invest a minimum amount of €350,000. If your commercial property is located under the ‘low density’ area category, then a 20 percent discount will be applicable.

Buy real estate in Madeira or the Azores

You can invest a minimum of €500,000 if you are planning to purchase real estate in the islands of Madeira or the Azores. If you are investing in a rehabilitation project, you need to pay a minimum amount of €350,000.

Read our article: How to Buy a Property in Portugal to know more.

Fund subscription

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

Capital transfer

You can choose to make a capital transfer of a minimum amount of €1.5 million.

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.


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. To know more about the changes, you can read our article: Understanding the Portugal Golden Visa Changes 2022


Portugal Golden Visa: Documents RequiredDocuments required for the NHR Program

  • Portuguese Golden Visa application form
  • 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.

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


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.

The following articles may also be of interest to you:

Frequently Asked Questions about the NHR Portugal Program

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

According to NHR Portugal 2023, you can qualify to be a  resident in Portugal if you are a foreign national living outside Portugal and have not been a resident in Portugal in the last five years. To qualify for residency in Portugal, you need to stay in Portugal for a period of 183 days in a year or should already have a residence in the country.

Who can apply for NHR Portugal?

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.

Which tax do you need to pay when you buy a property in Portugal?

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)

Do you need to pay wealth tax in Portugal?

There is no tax levied on wealth in Portugal. But, in 2017, Portugal updated its property tax criteria, where people need to pay an annual tax on Portuguese property, despite the country of residence of the property owner.

The property value determines the amount of tax that you need to pay. If you are a married couple or are civil partners, you then have a combined allowance of €1,200,000. The tax rate in Portugal ranges between 0.4 percent, 0.7 percent, and 1.0 percent.

Do you need to pay gift tax in Portugal?

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.

What is needed to apply for NHR Portugal Tax residency?

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

What is a non-habitual tax resident in Portugal?

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.

Who qualifies for non-habitual residency in Portugal?

The requirements for Non-Habitual Residency in Portugal 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.

What happens after ten years of NHR in Portugal?

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

Can I be resident in Portugal but not a tax resident?

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.

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