What is the Non-Habitual Resident Status?
The Tax Code created the NHR status within the scope of Personal Income Tax (IRS), with the aim of attracting to Portugal non‑resident professionals in high value‑added activities, holders of intellectual or industrial property, and pensioners receiving income from abroad.
Who is eligible?
Applicants must:
- Be considered tax residents in Portugal (under Article 16(1) of the IRS Code), by residing for more than 183 days, holding a dwelling that indicates an intention to reside, being a crew member of an entity based in Portugal, or performing public functions for the Portuguese State.
- Not have been considered tax residents in Portugal in the 5 years prior to the year of application.
Deadlines and application
You must first register as a resident in Portugal. The application for NHR status must be submitted by 31 March of the year following the year in which you became a resident. It can be filed online via the Portal das Finanças (the recommended option) or by a paper application addressed to the Director of Taxpayer Registration Services.
Benefits and taxation
Foreign income: Income obtained abroad is generally exempt, provided that, in the State of origin, the income may be taxed under a double‑taxation agreement.
Duration: Status is valid for 10 consecutive years.
Income tax: A special 20% tax rate applies to high value‑added activities.
Teresa Martins Lança | [email protected]
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