Tax heaven: Non habitual residents tax regime (NHR Portugal)

The non habitual residents tax regime (NHR) is available to non-EU and EU citizens.

Individuals may apply who have not been considered residents for tax purposes in the last 5 years in Portugal and decide to transfer their tax residence to Portugal.

Individuals who are eligible to register for this tax regime may benefit for the duration of 10 years, provided that every year they are considered tax residents.

Non habitual residents will be exempt from personal income tax on certain types of income if this income is taxable in the country of source under an existing double tax treaty or, if no tax treaty is applicable, it is subject to tax in a different jurisdiction and is not considered Portuguese sourced income.

A reduced flat rate 20% personal income tax will be applied to activities that are considered high added value activities and are specified on the official list of accepted activities.

Next step

Morpho can refer clients to accountants who can assist with NHR.