The Non-Habitual Residency scheme – often referred to as the NHR – is a tax regime which offers expats and investors reduced tax rates and exemptions on some taxes, throughout Portugal. Approximately 10,000 non-habitual residents are already enjoying the benefits.
Some key benefits of the NHR scheme include:
- Tax exemption on almost all foreign sources of income
- Residency in the EU
- Exemption on tax from gifts or inheritance to family members
- No wealth-tax
- Plus so much more
€ 450+ VAT
- NIF number
- Passport to tax authority portal
- Previous country of residence
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Frequently Asked Questions
What is the 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.
What kind of income is exempt from tax under the NHR?
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.
What documents do I need to show to apply for the NHR?
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
Am I eligible for the NHR?
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.
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