Competitive advantages:
For a period of 10 years, the non-habitual resident will benefit from IRS (Personal Income Tax) exemptions on foreign source income and a 20% flat rate of taxation on labour and self-employed income sourced from high-value activities.
Sources of income classed as high-value activities are often those of a scientific, artistic or technical nature including:
- Artists, actors, and musicians
- Auditors
- Doctors and dentists, teachers and psychologists
- Engineers
- Liberal professions, technicians, and similar
- Investors, directors, and managers, when part of companies covered by the contractual regime provided for in the Investment Tax Code.
As of April 2020, those who receive a pension and want to become tax residents in Portugal to benefit from NHR status will have their pension taxed at a flat rate of 10% in Portugal.
How can you acquire Non-Habitual Resident Status?
To acquire non-habitual resident status you will need to fulfill a certain set of criteria:
1- You must not have been resident in Portugal for the last 5 years;
2- Apply to become a resident in Portugal; either by obtaining a residence permit (non-EU citizens) or a residence certificate (EU citizens)
3- Register with Finanças as a tax resident in Portugal;
The application for non-habitual residency is done online through finanças. For ease and peace of mind, you can work with a professional who can take care of the whole process for you.
Registration as a Non-Habitual Resident offers these benefits for a period of 10 years, from the year of registering as a tax resident in Portuguese territory.