Non-habitual Residency

The NHR is a 10-year tax exemption scheme that can be of benefit to expats who become residents of Portugal. Many expats benefit from tax exemption for dividends, pensions and other cases. There are currently over 10,000 non-habitual residents in Portugal.

Passive income is not taxable under the NHR as long as it is taxed at the country of source. These are income streams such as foreign sources, dividends, foreign sourced employment income (as long as it can be taxed in the country of source) and foreign sources self employment income. If you have any questions, our personal tax experts will be able to give you more information about your situation.

It can be a lengthy process, which is why our team will be able to walk you through the whole process. There are certain criteria you need to meet in order to apply for the NHR status, such as:

• Proof of residency
• NIF proof documents 
• Tax status 
• Description of your job

To establish yourself within the NHR programme, you must have established a tax residential status as an expat in Portugal and secure a place to live by 31 December of that year, to show your intention Portugal will become your main home. You then have until 31 March of the following year to apply for the NHR.

Yes! Download our free brochure to learn more about the NHR.