Portugal's Non-Habitual Resident (NHR) program is one of Europe's most attractive tax regimes, offering significant benefits to new residents who become Portuguese tax residents. This program provides substantial tax advantages for the first 10 years of residency, making Portugal an even more compelling destination for international investors and professionals.
Tax Rates and Exemptions
Under the NHR program, qualifying residents can benefit from a flat 20% tax rate on Portuguese-sourced income from high-value-added activities, including certain professional services, intellectual property, and investment income. This represents significant savings compared to standard Portuguese tax rates.
Foreign-sourced income may be exempt from Portuguese taxation if it's subject to tax in the source country, providing excellent opportunities for international professionals and investors to optimize their global tax position while enjoying Portuguese residency.
Qualifying for NHR Status
To qualify for NHR status, applicants must not have been Portuguese tax residents in the five years preceding their application and must become Portuguese tax residents by spending more than 183 days per year in Portugal or having a permanent home in the country.
The application process is straightforward and can be completed within the first year of establishing Portuguese tax residency. Our tax specialists guide clients through the application process to ensure all requirements are met and benefits are maximized.
Investment Income Benefits
NHR status provides particular advantages for investment income, including dividends, interest, and capital gains from foreign sources. These may be exempt from Portuguese taxation under certain conditions, making Portugal an attractive base for international investment activities.
Real estate investors can also benefit from favorable treatment of rental income and capital gains, particularly when combined with Portugal's Golden Visa program for a comprehensive residency and investment strategy.
