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Non Habitual Resident Status
key points
- Over a period of 10 years, you'll be taxed at a fixed rate of 20% personal income tax on dependent and self-employed work resulting from high value-added professions.
- Over a period of 10 years, you'll be taxed at a fixed rate of 10% IRS on pension income earned abroad.
Which are the requirements to apply for nhr status?
- Not being resident in Portugal in the last 5 years;
- Register as a tax resident in Portugal with the local Finance Service (for this you must have stayed in Portugal for more than 183 days, consecutive or interpolated, or having stayed for less time, there, on December 31 of that year, there is housing in conditions that suppose the intention to maintain and occupy it as a habitual residence);
- Request the attribution of Non-Habitual Resident status at the moment you register as a tax resident in Portugal or until March 31 of the following year you become a resident in Portugal.
Once I acquire nhr status, which is the rate and incidence of taxation applicable to income earned in Portuguese land.
In the case of dependent or self-employed work, the applicable tax rate is 20%.
Taxation is levied on income from activities of high added value with a scientific, artistic or technical character:
- Architects, engineers and the like;
- Plastic artists, actors and musicians;
- Auditors;
- Doctors, dentists, teachers and psychologists;
- Liberal, technical and similar professions;
- Superior frames;
- Investors, administrators and managers, when integrated into companies that have been covered by the contractual regime provided for in the Investment Tax Code.
Registration as a Non-Habitual Resident gives you the right to be taxed as such for a period of 10 years from the year of your registration as a tax resident in Portuguese territory.
Once acquired the nhr status in which cases the flat rate of 10% irs is applied to income earned abroad?
For Pensioners:
- income is taxed in the State of origin, in accordance with an agreement to eliminate double taxation entered into by Portugal with that State;
- according to the criteria provided for in the IRS Code, income is not considered to have been obtained from a Portuguese source.
In case of income from dependent work:
- income is taxed in the State of country of origin, in accordance with to eliminate double taxation celebrated by Portugal with that State;
- such income is taxed in another State with which Portugal has not entered into any convention to eliminate double taxation, provided that the income is not considered to be obtained in Portuguese territory by the criteria of article 18 of the IRS Code.
In the case of income from self-employment (from services with high added value, with a scientific, artistic or technical character, or from intellectual or industrial property, income from capital, property income or income from capital gains) and other patrimonial increments), when:
- income may be taxed in the country, territory or region of origin, in accordance with an agreement to eliminate double taxation entered into by Portugal with that State, or;
- when there is no convention to eliminate the double taxation entered into, the OECD Model Convention may be applicable (considering the observations and reservations made by Portugal) and provided that the country, territory or region of origin does not have a privileged taxation regime, and provided that the income is not considered as obtained in Portuguese territory by the criteria of article 18 of the IRS Code.
Choosing Parcialfinance to assist your intallation in Portugal
Being your only interlocutor throughout your journey reduces the learning time, travel and possible mistakes that you would have when doing it with different partners.
What we are offering you is a specialized team that will provide a detailed analysis of your situation and propose you the best solutions to take at each stage of your installation in Portugal. This support includes searching for a property in Portuguese territory, help you legal understand the legal and tax scheme, as well as all administrative procedures throughout the process.
Our team is also equipped with solutions tailored to your needs. If your goal is to live in Portugal, we can present you with mandatory and optional insurances, assist you benefitting from tax advantage programs and show you investment opportunities .
Groupe ParcialFinance, although of Portuguese origin, also has offices in Switzerland, Luxembourg, Belgium and France. Do not worry, because even if you are not resident in any of these countries, we can guarantee you the same quality of service online.
Was this your dream for a long time now? Send us your project and we will start making it a reality.
Do you want to know how to apply for nhr status? ->
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