The Portuguese Government announced the intention to put an end to the non-habitual residents’ tax regime in 2024. This intention was confirmed in the State Budget proposal for 2024.
The end of the regime will not prejudice the rights of those who already have the NHR. According to the State Budget proposal, can also have access to the RNH i) people who, on December 31, 2023, meet the conditions for registration as RNH, that is, are tax residents in Portugal until that date, and ii) those who hold a valid residence visa on that date with the aim to reside in Portugal.
Therefore, those wishing to obtain the RNH must carry out the respective procedures in 2023.
People who meet one of the following requirements can obtain an RNH:
Taxpayers acquire the right to be taxed as non-habitual residents for a period of 10 years, consecutive or interpolated.
This regime provides numerous tax advantages. It is important to distinguish the origin of the income, that is, whether the source is in Portugal or abroad.
Employment and self-employment revenues from “high added value activities” are subjected to a special tax rate of 20%, regardless of the value of the income.
The list of “high added value activities” is contained in Ordinance no 230/2019 from the 23rd of July, and includes many activities, of which we highlight: company´s board directors and senior management, certain engineers, physicists or mathematicians and other technicians, doctors, certain professors, specialists in information and communication technologies / IT, authors, journalists and linguists, professions related with agriculture, livestock and forests, qualified workers in the industry or construction sector, as well as creative and performing artists.
Donations and inheritances in Favour of spouses, descendants or ascendants pay no taxes. Note that this exception applies, regardless of whether the person has NHR.
One final remark: the Portuguese tax system does not establish a wealth tax. For further information, please contact email@example.com