Chestertons can help you take advantage of Portugal’s special tax regime for non-habitual residents. Aimed at reinforcing the competitiveness of the Portuguese economy and attracting foreign investment, the scheme has proved highly successful since it was established in 2009.
Under the scheme, non-habitual residents (NHRs) are subject to a specially reduced flat rate of 20% tax on all salaries and business/professional income originating in Portugal within a variety of specified areas. These include architects, engineers, artists, auditors, doctors and dentists, some professionals and highly skilled technicians, in addition to investors, directors and company managers.
Furthermore, NHRs enjoy a tax exemption on almost all foreign sources of income under double taxation treaties. Tax exemptions on pensions, gifts and inheritance are also in place.
The regime is available to anyone who becomes tax resident in Portugal, provided they were not Portuguese tax residents in the previous 5 years. To qualify, you must stay in Portugal for more than 183 days in Portugal during the relevant financial year or have a home in Portugal on 31 December of the relevant tax year that you intend to have as your habitual residence. Once granted, NHR status lasts for 10 consecutive years.
In a large number of cases, non-habitual resident applications start with a property purchase, so contact the Chestertons Portugal team today for more information.