For those seeking a favorable tax environment and a luxurious lifestyle, Portugal has long been a sought-after destination. The Non-Habitual Residence (NHR) program, introduced by the Portuguese government, has been a key attraction for individuals looking to benefit from significant tax advantages. However, as of January 1st, 2024, the government has announced the conclusion of this program. This means that those who apply before December 31, 2023, still have the opportunity to enjoy the NHR benefits for the next 10 years. Let’s delve into the details of this program and the advantages it offers.
What is the Non-Habitual Residence (NHR) program?
The NHR program is a special tax regime designed to attract individuals to become tax residents of Portugal. It offers a range of tax benefits, including reduced tax rates or even tax exemptions, for specific types of income. This program has been particularly appealing to retirees, high-net-worth individuals, and professionals in various fields.
Under the NHR program, qualifying individuals can benefit from the following tax advantages for a period of 10 years:
1. Tax Exemptions: Certain types of foreign income, such as pensions, dividends, and capital gains, may be exempt from taxation in Portugal.
2. Reduced Tax Rates: For income derived from high-value-added activities or professions, a flat tax rate of 20% may apply, offering significant savings compared to other countries.
3. Double Taxation Agreements: Portugal has an extensive network of double taxation agreements with many countries, ensuring that individuals do not pay taxes twice on the same income.
4. Wealth and Inheritance Tax Benefits: Portugal does not impose wealth or inheritance taxes, making it an attractive destination for those seeking to protect their assets and pass them on to future generations.
Act Now to Secure the Benefits:
With the NHR program coming to an end on January 1st, 2024, time is running out for those interested in taking advantage of these tax benefits. Applying before December 31, 2023, is crucial to ensure eligibility for the program and to secure the advantages for the next 10 years.
In a nutshell:
Portugal’s Non-Habitual Residence (NHR) program has been a game-changer for individuals seeking a favorable tax environment and a high-quality lifestyle. However, with the program concluding on January 1st, 2024, it is important for interested individuals to act swiftly and apply before December 31, 2023, to secure the tax advantages for the next decade. Don’t miss this opportunity to enjoy the benefits of the NHR program and experience the luxury and beauty that Portugal has to offer.