Non-habitual Residence Regime

Key benefits of choosing Portugal as non-habitual residence.

I – WHAT ARE THE COMPETITIVE BENEFITS?

A fixed tax rate on personal income for a period of 10 years (IRS taxes – on income) of 20% over profits in Portugal.

The absence of double taxation in the case of pensions and income from employment or self perceived abroad.

II – HOW TO OBTAIN THE STATUS OF NON-HABITUAL RESIDENT?

  1. Not having resided in Portugal for the past  five years;
  2. Register as tax resident in Portugal with the local tax office (for this, you must have been in Portugal for more than 183 consecutive days, or, if you stayed for less time, have  by December 31st of the same year,  a dwelling in such conditions that indicate you intend to keep it and return to it as your habitual residence);
  3. Apply for the status of  non-habitual resident, when you are registered as tax resident in Portugal or before March 31 of the year after you became resident in Portugal.

If you are employed or self-employed, the tax rate is 20% on the income received in the country (plus from 2014, a surcharge of 3.5%). The tax applies to income derived from high value-added activities that are of a scientific, artistic or technical nature.

For more information on these or other areas, feel free to contact us.