Who qualifies for non-habitual residency in Portugal?
To qualify for NHR, you must live overseas, not have been a resident in Portugal within the last five years and want to reside in Portugal. To be considered a resident, you must remain in Portugal for 183 days a year or have your primary home there.
Who is eligible for NHR in Portugal?
Individuals of any nationality (including non-EU/EEA citizens) can potentially benefit from Portugal’s NHR regime for 10 consecutive years if they qualify as a tax resident in Portugal and have not been taxed as a Portuguese tax resident in any of the five years preceding the year in which residence is established.
What are the benefits of NHR?
What are the benefits of the NHR Regime? The NHR regime establishes, under certain conditions, IRS exemptions on foreign source income, as well as a limited 20% taxation of income from employment and independent personal services, in both cases if deriving from listed high value-added activities.
How can I avoid paying taxes in Portugal?
Portugal’s ‘non-habitual residents’ (NHR) scheme gives special tax benefits to new residents for their first ten years in the country. It also offers a lower income tax rate of 20% if you’re employed in Portugal in a ‘high value’ activity and allows you to receive some foreign income tax-free.
Do I qualify for NHR?
Non-habitual resident status can be requested by anyone who meets three requirements. You must live abroad, not have been a resident in Portugal within the last five years and want to move to Portugal. To be considered a resident, you must remain in Portugal for 183 days a year or have your primary home there.
How do I apply for NHR in Portugal?
To obtain the NHR status it is necessary to:
- Check that one can benefit from the NHR status ;
- Get a NIF (Tax Number) ;
- Form and file the application file with Finanças ;
- Receive the answer ;
- Report your income in Portugal.
What are the benefits of NHR in Portugal?
Advantages. The advantages of the NHR Program in Portugal include:
Why is Portugal a tax haven?
Portugal is one of the best countries to live or retire and there are several reasons for this: best EU residency program for investors (minimal stay requirements and the possibility of obtaining an EU passport after 6 years), it’s the best EU tax haven for pensioners and high net worth individuals (10-year exemption …
How do I request an NHR?
Can Portuguese citizen apply for NHR?
The NHR program is in principle open to nationals of any country, including non-EU/EEA citizens. All you need to do is to be able to meet the Portuguese residency requirements. Because of the EU freedom of movement, it will be much easier for EU citizens to establish their residence in Portugal, of course.
How long does it take to get NHR?
The application must be submitted by 31 March of the year following the year in which they became tax resident in Portugal. 06 – How long does it take to get a decision on the application? As a general rule, the Tax Authority takes 2 to 3 working days to decide on the application for the NHR scheme.
What are the rules for non-habitual resident NHR in Portugal?
According to the rules of non-habitual resident NHR status in Portugal, most foreign source income is exempt from Portuguese income tax for ten consecutive years, as well as income taxable in another country.
What is Portugal’s NHR tax regime?
The Portugal NHR tax regime (non-habitual resident) is a hugely successful scheme offering lucrative tax breaks for foreign residents. To date, over 10,000 citizens from across the world have successfully applied, helping them alleviate their tax burdens.
What is the non-habitual resident program?
The Non-Habitual Resident (NHR) Portugal program is a tax regime that offers foreign residents and investors reduced tax rates and exemptions on some taxes. It was introduced in 2009 and updated in 2020. The aim is to attract foreigners to Portugal.
How to become a tax resident in Portugal?
You will need all of the necessary documents to prove residency, as well as a Portuguese tax number. You can then apply to be a tax resident in Portugal, and then make an application for NHR status. Who can apply for the non-habitual tax regime in Portugal?