There are plenty of reasons for someone to choose Portugal as their next home. Some of them have to do with safety, others with cost of living. Some reasons are top priorities for expats, others are enticing for entrepreneurs.
But what do all of them have in common? They can benefit from a low tax burden! That’s right. There’s a special tax regime addressed to foreign citizens who intend to live in Portugal or even Portuguese emigrants who might want to return to their homeland. And, as you might have guessed from the title, it’s called NHR.
If the word “tax” sounds unsettling, there’s no need to worry. We’ll tell you all about one of the most attractive tax regimes in the world!
Attracting talent in high value-added activities
The Non-Habitual Resident (NHR) status is a fiscal regime introduced in 2009 to improve Portugal’s international competitiveness. Through reduced tax rates and several exemptions, it focuses on two kinds of people:
- Retirees who moved to Portugal and are enjoying their pensions here;
- Highly-skilled workers who are employed or self-employed in high value-added professions (such as investors, doctors, engineers and many others).
Since these people are essential to boost our economy, non-habitual residents can benefit from:
| Personal income tax treatment over a 10-year period |
| 20% flat rate on business and professional income from Portuguese sources |
| 10% tax rate for most pension income earned abroad |
| Tax exemption on inheritance or gifts |
All in all, the NHR tax regime is perfect for retirees, high networth individuals and entrepreneurs. Is that your case? Let’s find out then how you can start enjoying the Portuguese way of life!
How to get the NHR status?
Even though this is a very attractive regime, you still have to meet some requirements before fully enjoying your status:
- You must have the right to reside in Portugal, either by being an EU/EEA/Swiss citizen or through the Golden Visa program;
- Not have been taxed as a Portuguese resident in the five years preceding the application;
- Holding a real estate property (or rental contract) as a proof of residency.
Need expert advice on tax benefits?
The safest way to apply for NHR status and start saving in tax is with the help of a professional team. You should rely on experts who understand the Portuguese law and are able to deliver the best solutions for your needs.
In other words, you should rely on YELLOW PORTUGAL.
Feel free to reach us anytime and we’ll be your gateway to live and invest in this friendly tax environment.