Non Habitual Residency in Portugal
NHR or Non-Habitual Tax Residency is something that more and more foreign people are taking advantage of when considering investment in real estate in Portugal. There is a strict application process and steps to follow but the benefits can allow you to declare Portugal as your residence for Taxation purposes. Some advantages of this status can be tax breaks lasting for 10 years. Taxes Associated with IRS on personal income made in Portugal are at a 20% fixed for a 10-year period.
Eligibility for non-habitual resident status in Portugal
• You must live abroad
• Must not have been a resident of Portugal in the last 5 years
• Want to move to Portugal
To be considered a resident it is necessary to reside in Portugal for 183days a year or have your main place of residence here.
Some advantages of being a non-habitual resident in Portugal could be for example if you come here for work, you could benefit from a fixed income tax rate of 20%, this is a reduced rate that can apply to specialists and professionals in certain fields. There are many professions included in this category such as Teachers, Designers, Doctors, Architects, Senior Executives, Dentists, Technicians and many more.
If you are retired and claiming a pension, then there can also be benefits from NHR. Benefits coming form Pensions derived from outside of Portugal yet paid here are exempt from IRS payments because there are agreements to protect against double taxation. At present Portugal exempts retirees from paying taxes on their pension if they don’t originate in Portugal
There are of course restrictions and exceptions so for more information its advisable to contact the Portugal Tax Authority.
Request a NHR / Tax Consultaion
A good alternative will be to message us here and request NHR advice. We can include a meeting with a taxation specialist in your next visit to Portugal. Hereby you can get up to date information specific to your case and be assured that all information is from professionals in the industry.
All in all NHR is one more reason why Portugal is such a great place to think about your next real estate investment!