Non Habitual Residence in Portugal - NHR

  Non habitual residence

The non-habitual residency tax regime is attractive to Portugal therefore Algarve, as a retirement hotspot - How it works:

The Portuguese government introduced the NHR tax regime in 2009 to encourage ‘high value’ industries and individuals to relocate here. It offers those working in a ‘high added value’ profession in Portugal, a flat income tax rate of just 20%, 

Such professions include: architects, engineers, artists, auditors, doctors, university teachers and company managers, among others.

The tax concept of non-habitual resident was updated in 2013, with the previously hazy issue of retirement cleared up. Once it was made clear that income derived from pensions was exempted from taxation – both in Portugal, and abroad – the number of requests rose: between 2009 and 2012 only 100 foreigners wanted NHR status, while in 2013 some one thousand applications were made.

Under NHR, most types of income that comes from a foreign source or which is taxable in another country is exempt from Portuguese taxation for ten years and cannot be extended. In addition, applicants must not have been resident in Portugal during the last five years . 

A declaration attesting to this fact must be supplied, ( residing in Portugal for 183 days each year) alongside any additional information the Portuguese tax authorities may request. In practice, this means that expatriates can potentially receive some income and gains without paying tax in either country. 

For futher reading as per the Portuguese Fiscal Authority:

  Non Habitual Hesidence - NHR

The non-habitual residency tax regime is attractive to Portugal  as a retirement hotspot - How it works:

The Portuguese government introduced the NHR tax regime in 2009 to encourage individuals to relocate here. It offers a flat income tax rate of just 20% with no double taxation on pension incomes or those that are working or self employed.

The tax concept of non-habitual resident was updated in 2013, with the previously hazy issue of retirement cleared up. Once it was made clear that income derived from pensions was exempted from taxation – both in Portugal, and abroad – the number of requests rose: between 2009 and 2012 only 100 foreigners wanted NHR status, while in 2013 some one thousand applications were made.

Under NHR, most types of income that comes from a foreign source or which is taxable in another country is exempt from Portuguese taxation for ten years and cannot be extended. In addition, applicants must not have been resident in Portugal during the last five years . 

A declaration attesting to this fact must be supplied, ( residing in Portugal for 183 days each year) alongside any additional information the Portuguese tax authorities may request. In practice, this means that expatriates can potentially receive some income and gains without paying tax in either country. 

For futher reading as per the Portuguese Fiscal Authority:

  Non habitual residence

The non-habitual residency tax regime is attractive to Portugal therefore Algarve, as a retirement hotspot - How it works:

The Portuguese government introduced the NHR tax regime in 2009 to encourage ‘high value’ industries and individuals to relocate here. It offers those working in a ‘high added value’ profession in Portugal, a flat income tax rate of just 20%, 

Such professions include: architects, engineers, artists, auditors, doctors, university teachers and company managers, among others.

The tax concept of non-habitual resident was updated in 2013, with the previously hazy issue of retirement cleared up. Once it was made clear that income derived from pensions was exempted from taxation – both in Portugal, and abroad – the number of requests rose: between 2009 and 2012 only 100 foreigners wanted NHR status, while in 2013 some one thousand applications were made.

Under NHR, most types of income that comes from a foreign source or which is taxable in another country is exempt from Portuguese taxation for ten years and cannot be extended. In addition, applicants must not have been resident in Portugal during the last five years . 

A declaration attesting to this fact must be supplied, ( residing in Portugal for 183 days each year) alongside any additional information the Portuguese tax authorities may request. In practice, this means that expatriates can potentially receive some income and gains without paying tax in either country. 

For futher reading as per the Portuguese Fiscal Authority:

  Non habitual residence

The non-habitual residency tax regime is attractive to Portugal therefore Algarve, as a retirement hotspot - How it works:

The Portuguese government introduced the NHR tax regime in 2009 to encourage ‘high value’ industries and individuals to relocate here. It offers those working in a ‘high added value’ profession in Portugal, a flat income tax rate of just 20%, 

Such professions include: architects, engineers, artists, auditors, doctors, university teachers and company managers, among others.

The tax concept of non-habitual resident was updated in 2013, with the previously hazy issue of retirement cleared up. Once it was made clear that income derived from pensions was exempted from taxation – both in Portugal, and abroad – the number of requests rose: between 2009 and 2012 only 100 foreigners wanted NHR status, while in 2013 some one thousand applications were made.

Under NHR, most types of income that comes from a foreign source or which is taxable in another country is exempt from Portuguese taxation for ten years and cannot be extended. In addition, applicants must not have been resident in Portugal during the last five years . 

A declaration attesting to this fact must be supplied, ( residing in Portugal for 183 days each year) alongside any additional information the Portuguese tax authorities may request. In practice, this means that expatriates can potentially receive some income and gains without paying tax in either country. 

For futher reading as per the Portuguese Fiscal Authority:

  Non Habitual Hesidence - NHR

The non-habitual residency tax regime is attractive to Portugal  as a retirement hotspot - How it works:

The Portuguese government introduced the NHR tax regime in 2009 to encourage individuals to relocate here. It offers a flat income tax rate of just 20% with no double taxation on pension incomes or those that are working or self employed.

The tax concept of non-habitual resident was updated in 2013, with the previously hazy issue of retirement cleared up. Once it was made clear that income derived from pensions was exempted from taxation – both in Portugal, and abroad – the number of requests rose: between 2009 and 2012 only 100 foreigners wanted NHR status, while in 2013 some one thousand applications were made.

Under NHR, most types of income that comes from a foreign source or which is taxable in another country is exempt from Portuguese taxation for ten years and cannot be extended. In addition, applicants must not have been resident in Portugal during the last five years . 

A declaration attesting to this fact must be supplied, ( residing in Portugal for 183 days each year) alongside any additional information the Portuguese tax authorities may request. In practice, this means that expatriates can potentially receive some income and gains without paying tax in either country. 

For futher reading as per the Portuguese Fiscal Authority:

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