Non-Habitual Residents

NHR regime

The Non-Habitual Residents regime intends to promote residence transfer of foreign entrepreneurs, investors and specialized professionals to Portugal.

Competitive advantages

 

  • For a period of 10 years, taxation related to IRS (personal income tax) on labour income in Portugal is at a flat rate of 20%, as long as derived from high added value activities of scientific, artistic or technical nature (see box).

  • No double taxation for pension incomes or for employment and selfemployment income obtained abroad.

General terms

  • Be tax resident according to Portuguese legislation

  • Not have been taxed as a Portuguese resident for the last 5 years.

 

   An individual is considered tax resident in Portugal in a 

   year when:

  • He stays in Portugal for more than 183 days, during a 12 month period, beggining or ending in that tax year.

     

     OR

  • He has a residential accommodation available in Portugal in any day of that 12 month period, that would lead to the assumption that it is intended to be his habitual residence.

High added value activities

 

Architects, engineers, fine artists, auditors, doctors, teachers, designers, IT technicians, researchers, psychologists, liberal professionals, investors, directors and managers under conditions.

Foreign income exemption

Pensioners and

retired people

Foreign-source occupational pensions may be fully exempt of taxation when:

 

  • The addressee is qualified for the special NHR regime.

  • The pensions are subject to tax in the source country, according to the double taxation elimination treaty, signed by both States, or

  • The pensions are not considered to have been obtained through a Portuguese source.

If these requirements are met, the pension will not be taxed in Portugal.

 

In addition, the Tax Treaty between the source country and Portugal may prevent that country from taxing the pension, resulting in potential double non-taxation.

Income from

employment

  • Income is taxed in the origin, according to the double taxation elimination treaty, signed by both States, or

  • Income is taxed in another State with no double taxation elimination convention with Portugal, as long as the income was not obtained in Portuguese territory.

Other income

(except pensioners)

  • The income may be taxed in the source country, territory or region, according to the convention to eliminate double taxation, or

  • When there is no convention to eliminate double taxation, the OECD model convention may be applied, and as long as the source country, territory or region does not have a privileged tax regime, and as long as the income was not obtained in Portuguese territory.

We can help

 

We can guide and assist you throughout the Non-Habitual Residents process.


We ensure information and process management transparency, regarding compliance with all necessary formalities, in the year of relocation and following, assuring that you will take all the benefits of the NHR regime.

Whatever your needs are, we can assist you in:

  • Financial advisory

  • Taxation advisory and accounting support

  • Legal / bureaucracy support

  • Real Estate

  • Business guidance

  • Viability projects

  • Investment projects

  • Market research

  • Marketing

Data Protection Guarantee, according to the current legislation. ECN Consulting guarantees all confidentiality in the processing of all provided data, which are exclusively used in the internal organization of services and projects. We are available to correct or erase the individual data, unless for law obligation purposes, according to our privacy policy. Tel. +351 21 0174 047; E-mail: ecn@ecn.pt 

​Also in accordance with Portuguese law, regarding the Alternative Dispute Resolution, ECN Consulting is an adherent company of CNIACC - National Center for Information and Arbitration of Consumer Disputes (http://www.arbitragemdeconsumo.org). More information in 'Portal do Consumidor' at www.consumidor.pt

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