Non-Habitual Residents Regime

The regime has been introduced in order to attract individuals and their families to Portugal by making it beneficial from a tax perspective to become a tax resident.

Under the NHR status salaries, pensions, rental income, investment income and capital gains originating in a non-Portuguese source can be exempt from personal income tax.

The only requirement to benefit from the NHR status: become a Portuguese tax resident, not having been a Portuguese tax resident in the previous 5 years.

NHR will be exempt from personal income tax on qualifying income if it is subject to tax in the country of source under an existing Double Tax Treaty that allows for this.

If no tax treaty exists the income will be exempt if it were subject to tax in another jurisdiction and is not considered as Portuguese source income under domestic rules.

There is also a special flat rate of 20% applicable for certain types of income arising from highly qualified activities.

In the first instance please contact us for further information.