NON HABITUAL RESIDENT
NHR
Under the NHR program, qualifying individuals can benefit from several advantages. Firstly, foreign-sourced income, such as pension, dividends, interest, and certain professional income, can be exempt from Portuguese taxation, provided it is derived from eligible sources and meets specific criteria.
Secondly, certain types of income, such as employment and self-employment income, derived from high-value-added professions can benefit from a flat tax rate of 20%. This competitive tax rate allows individuals to potentially reduce their tax burden significantly.
To be eligible for the NHR program, individuals must become tax residents in Portugal and not have been a Portuguese tax resident in the previous five years. They need to fulfill specific requirements, such as spending a certain number of days in Portugal and establishing their main residence in the country.
The NHR program has attracted many foreign individuals, particularly retirees and professionals in industries such as finance, IT, arts, and consulting. Portugal's attractive lifestyle, high-quality healthcare system, pleasant climate, and affordable cost of living further enhance the program's appeal.
It's important to note that while the NHR program offers significant tax benefits, individuals should consult with tax advisors or professionals to understand their specific tax obligations, both in Portugal and their home country, and ensure compliance with all relevant regulations.
The Non-Habitual Resident program in Portugal provides an opportunity for individuals to optimize their tax situation and enjoy a favorable tax regime. With its appealing benefits and Portugal's many attractions, the NHR program has positioned the country as an attractive destination for those seeking tax efficiency and a high quality of life.
