Non-Habitual Resident

Key Features Portugal's NHR (Non-Habitual Resident) 2.0:

• Duration: 10 years of tax benefits

• Eligibility:

  • Must become tax resident in Portugal

  • Must not have been a Portuguese tax resident in previous 5 years

  • Must apply after registering as tax resident

• Main Benefits (as of early 2024):

  • Employment income from "high value-added activities": 20% flat rate

  • Foreign pension income: 10% flat rate

  • Foreign-source income: Often tax-exempt if certain conditions met

• High Value-Added Activities included:

  • Architects, engineers

  • Artists, musicians

  • Medical doctors

  • IT professionals

  • Researchers, scientists

  • Senior management positions

  • Teachers at universities

• Key Points:

  • Must spend 183+ days per year in Portugal

  • Or have permanent residence available on Dec 31

  • Need to register as tax resident first

  • Then apply for NHR status