The Tax Regime for Non-Habitual Residents

The tax regime for Non-Habitual Residents aims to attract qualified professionals to Portugal, as well as pensioners who receive pensions of foreign origin.

Since the approval of the regime, in 2009, thousands of foreigners moved to Portugal and obtained the benefits, which are valid for a period of 10 years.

The fantastic climate, the security conditions of Portugal and the hospitality of the locals also contribute to the success of this regime.

The scheme is applicable to natural persons qualified as Portuguese tax residents and who have not been in the last five years.

An individual qualifies as a tax resident in Portugal if:

  • Stay in Portugal 183 days or more in any 12-month period; or,
  • Have a residence available on any day of the period mentioned above, suggesting that it is your usual residence.

Under the special regime, income from work and self-employment obtained in Portuguese territory, resulting from activities with high added value for non-habitual residents, are taxed at a special rate of 20%. Income from pensions of foreign origin is taxed at a special rate of 10%.

In addition, foreign income from work and self-employment, royalties, interest, dividends, rents and capital gains from real estate are, as a general rule, exempt from taxation in Portugal.