We want to let you know that the State Budget Law for 2024 has repealed the tax regime for Non-Habitual Residents (NHR) as of November 29th, 2023. However, there is a transitional provision in place that protects certain situations.
The NHR regime will continue to apply for ten consecutive years from the date a taxpayer became a resident in Portugal. This regime applies to taxpayers and their families who:
– Were already registered as RNH in the Tax and Customs Authority’s register of taxpayers as of January 1st, 2024.
– Meet the requirements to qualify as a resident for tax purposes in Portugal by December 31st, 2023.
– Become a tax resident in Portugal by December 31st, 2024, and declare that they have one of the following:
– A work contract, secondment agreement, or promise of employment signed by December 31st, 2023, for work in Portugal.
– A lease or possession agreement for property in Portugal signed by October 10th, 2023.
– A reservation or promissory contract for the acquisition of a right in rem over real estate in Portugal, signed by October 10th, 2023.
– Enrollment or registration of dependents in a school located in Portugal, completed by October 10th, 2023.
– A valid residence visa or permit until December 31st, 2023.
– An ongoing procedure, initiated by December 31st, 2023, for obtaining a residence visa or permit with the competent authorities.
Lastly, income from dependent and self-employed work obtained in Portugal and arising from high value-added activities of a scientific, artistic, or technical nature will be taxed at a special rate of 20%, with no maximum income limit.