What is the Portugal NHR tax regime?
The Portugal non-habitual resident tax aims to attract investors and professionals of high cultural and economic worth, in order to increase the country’s international competitiveness. The regime was first implemented in 2009 and allows for substantial tax savings for those who qualify.
Why become a non-habitual tax resident in Portugal?
- TAX RESIDENCY IN WHITE-LISTED EU COUNTRY
- SPECIAL TAX TREATMENT FOR 10 YEARS
- NO WEALTH TAX
- FREE REMITTANCE OF FUNDS TO PORTUGAL
- EXEMPTION ON ALL FOREIGN INCOME
- 20% FLAT RATE ON SOME PORTUGUESE INCOME
- TAX EXEMPTION ON GIFTS FOR FAMILY MEMBERS
- NO MINIMUM STAY REQUIREMENT
Key advantages of applying for Portugal NHR status:
- Benefit from a special personal income tax treatment over a 10-year period
- Enjoy tax exemption on almost all foreign source income
- 20% flat rate for certain Portuguese source incomes (from specific professions and from self-employment), as opposed to normal Portuguese income tax rates of up to 48%
- No minimum stay requirement
- Become part of a white-listed tax environment within the EU
- A tax exemption for gifts or inheritance to direct family members
- No wealth tax
- Free remittance of funds to Portugal
Portugal NHR and double taxation agreements
A key feature of Portugal’s non-habitual resident tax regime lies in its relationship with Double-Taxation Agreements (DTAs). DTAs allow for most categories of income to be taxed in the country of source of income. Most countries, however, choose not to tax income earned by non-residents as they want to be seen as jurisdictions open for foreign investment.
In turn, under the NHR tax regime, Portugal will not tax most foreign source income earned by NHR individuals because the income may be taxed abroad. This allows for NHR residents to receive foreign income completely free of tax.
Portugal currently has signed Double-Taxation Agreements with 79 countries and the OECD model tax convention may be used in the absence of a DTA.
How Expat Financial Can help?
Expat Financial offer the most Comprehensive Package available anywhere in Europe to help people benefit from Portugal’s Lucrative NHR (Non Habitual Residence Scheme). We can set up:
- Free Consultation to assess suitability for NHR scheme
- Application for NIF number (Portuguese Tax Identification Number)
- SEF registration and obtaining the respective residence certificates
- Preparing and submitting the NHR status application to the tax Authority
- Opening of Portuguese Bank Account
- Yearly Tax returns to the Portuguese Authorities
Expat Financial can also help set up the most Tax/Corporate Tax efficient way to distribute funds to Portugal Europewide.
- Set up Limited Company in ‘White Listed ‘ European country with beneficial Corporate Tax rate and DTA (Double Tax Agreement) with Portugal.
- Set up Bank Account
- Provide Company Directors/Trustees and Company address
- Register Portuguese Tax Status with Relevant Country Tax Authorities
- Yearly Tax returns with relevant Country Tax authorities