Non-Habitual Residents

What is it?

It is a tax regime that aims to attract Non-Habitual Residents, i.e. citizens that are not resident in Portugal, regardless of their nationality.

The regime offers relevant tax benefits to those who wish to establish their residence in Portugal.

Main advantages

• Reduction or even exemption from taxation, for a period of 10 years, on income from dependent work, pensions, business and professional income and other types of income, obtained abroad, under certain conditions. (However, certain exempt income will be taken into account for the purposes of applying marginal rates)
• Income obtained in Portugal, arising from value-added activities*, will be taxed at the rate of 20%
• There is no inheritance tax in Portugal, for direct family members

Who can benefit?

All citizens, Portuguese or foreign, who have not been tax residents in Portugal in the last five years.

Requirements

• Become tax resident in Portugal
• To be in Portugal for more than 183 days a year (followed or interpolated); or
• Have, on December 31 of that year, a property in conditions that imply the intention to maintain and occupy it as a habitual residence.

When should be asked?

The application for registration as a non-habitual resident should only be made after registering as a resident in Portuguese territory. So, in case you already have the Portuguese tax identification number (NIF), but you are still registered as a non-resident, you must request, in advance, the change of address and status for resident, in any Finance Service or Citizen's Store.
Deadline: The application for registration, as a non-habitual resident, must be made by March 31 inclusive, of the following year that in which become a resident in the Portuguese territory.

* Architects, engineers and similar technicians; Artists, actors, singers and musicians; Sculptors and painters; Auditors; Doctors and dentists; Teachers; Psychologists; Liberal, technical and assimilated professions; Archaeologists, biologists and life sciences specialists; Computer programmers; Activities of the information services; Investors, managers and managers (as specified in Ordinance 12/2010 of January 7)