You only have until the end of 2023 to apply for the Non-Habitual Resident (NHR) Program in Portugal

On the 2nd of October, the Portuguese Prime Minister announced the end of the non-habitual residents (NHR) regime, with a scheduled date for the end of 2023. The Government introduced the Non-Habitual Resident Tax Scheme in 2009 to attract skilled professionals whose jobs involve high-value-added activities and recipients of pensions earned abroad. This scheme is aimed at new foreign residents of any nationality and Portuguese citizens who have been living abroad for more than 5 years.

This status corresponds to a special scheme whereby a reduction in Personal Income Tax (IRS) is granted over 10 years. It is important to emphasize that the NHR tax regime does not apply to all income, i.e., income earned in Portugal is not exempt, only income earned abroad. The advantage is the application of an IRS tax rate of only 20% on income from employment and self-employment related to high-value-added activities, as defined in the regulation. On the other hand, pensions received from abroad and registered under the NHR tax regime from 1 April 2020 will enjoy a greater advantage as they will be subject to a tax rate of 10% IRS.

The Non-Habitual Resident Program expires at the end of the year but remains in effect for those who already benefit from it.

Prime Minister António Costa assured that those who already benefit from or are enrolled in this status will retain that condition for the duration specified in the program. The Prime Minister also mentioned that the measure was necessary and made sense in the past, as 59% of the beneficiaries chose to remain in Portugal after the 10-year period.

The tax regime for Non-Habitual Residents saw a significant increase last year, with 57,887 registrations in 2021, which rose to 74,258 in 2022. The 2023 data is not yet known, but the expectation is that, with the announcement made at the beginning of October, the number of registrations will continue to rise.

Make Casas do Barlavento your partner and benefit from the tax regime for Non-Habitual Residents in 2023!

Portugal benefits from a stable political and social environment, as shown by the Global Peace Index, in which it is ranked 7th globally. The sense of security experienced in Portugal is an excellent reason for families to choose to stay here. The highly skilled workforce, the ease of communication in other languages, especially English, and the quality of life are strong incentives for entrepreneurs, highly skilled professionals, and high-net-worth individuals to settle in the European Union.

One of the crucial services we provide is tax consultancy, which is essential for registering for the Non-Habitual Resident program. This consultancy includes administrative and tax assistance with government agencies and private entities.

If you don't have residency in Portugal, our team dedicates its efforts to finding properties that perfectly meet the needs of our foreign clients. Thanks to our in-depth knowledge of the local real estate market and national legislation, we are well-placed to pinpoint appropriate properties, considering each client's particular preferences and needs. In addition, we provide the necessary support throughout the acquisition process to make the transition into a new phase of life as smooth as possible.

Our services go beyond the mere purchase and sale of real estate. With us, you will find a "One-Stop-Shop" as we focus on meeting all your needs by consolidating our position as the ideal partner in the Western Algarve region.

Would you like to secure the benefits of this tax regime? The Non-Habitual Resident Program (NHR) ends in 3 months!

Contact Casas do Barlavento and find out everything we can do for you. This is the right time to take action!