NHR Non Habitual Residents regime

  • Portugal is a very attractive option for individuals who become Non Habitual Residents (NHRs). As a beneficial Personal income Tax (PIT) regime, NHR is available to individuals who wish to become tax resident in Portugal, provided they were not a Portuguese tax resident in any of the previous 5 years. NHR status is granted for 10 years.
  • To qualify as an NHR one must spend at least 183 days per year in Portugal.
  • The benefits of NHR are:
    • Reduced 20% flat rate for Portuguese (self) employment income from qualifying activities in Portugal
    • Exemption for almost all foreign source income
    • No gift and inheritance tax for assets outside of Portugal. Inheritances or gifts of Portuguese assets to spouse, descendants or ascendants are tax exempts. Inheritances or gift to other individuals are subject to a flat 10% stamp tax rate
    • No wealth tax and free remittance of funds either to Portugal or abroad
    • Portuguese companies may take advantage of EU non-discrimination rules and EU directives on mergers, dividends, interest and royalties , as well as Double taxation Treaties (DTT) signed by Portugal.
    • Dividends and capital gains obtained by Portuguese companies can benefit from a participation exemption regime, thus making Portugal an interesting location for investments abroad.
    • Non Habitual Tax Residents will pay a flat rate of 10% on income from their foreign pensions.

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