NON HABITUAL RESIDENT

The Non Habitual Resident’s Tax Regime was created to attract qualified professionals to Portugal.

Its main purpose, but not exclusive one, is to attract non-resident who perform high value-wadded activities professionals as well as pensioners who receive pensions abroad.

Access conditions:

The regime can be obtained through requesting the respective registration, by those who fulfill the following conditions:

– Are considered tax residents in Portuguese territory (under Article 16 of the IRS Code);

– Haven’t been considered tax residents in Portuguese territory in any of the 5 preceding years.

 

Requesting phase:

Law-Decree 41/2016 of August 1st has changed the wording of paragraph 10 of Article 16 of the Personal Income Tax Code (CIRS). Henceforth, requests for registration as non-habitual tax resident must be exclusively submitted by electronic means, through the tax authorities’ website (Portal das Finanças). This new feature will simplify and standardize the requesting phase for future applicants of this tax scheme. Nevertheless, for purposes of registration as a tax payer who pursues an activity of high added value, additional documental evidence should be presented near the Portuguese Tax Registration Services Office.

 

Tax framework:

The beneficiaries of this regime may benefit from a full tax exemption in Portugal or a flat income tax rate of 20%, for a 10 years period.