In order to attract non-resident professionals and foreign pensioners to the country, Portugal created a tax regime for non-habitual residents. This scheme assumes an income rate is 20% for own and qualified employment and tax exemption for almost all income from foreign sources.
The combination of the Golden Visa and the Non-Habitual Resident Regime makes Portugal a highly competitive place with a low tax burden and free movement within the EU.
In order to qualify as an unusual tax resident, you need to fulfill the following requirements:
- To be a tax resident in Portugal:
A tax resident in Portugal, among others, who remains in Portuguese territory, in a given year, more than 183 days (followed or interpolated) or, who, having spent less time, has, on 31 December of that year, housing in Portugal. conditions which imply the intention to maintain and occupy it as a habitual residence.
- Not to have been considered resident in Portuguese territory during the 5 previous antecedents to the application of the regime;
The authorization of the non-habitual resident status must be followed by registration as a resident in Portugal, with a financial service or citizen’s shop.
The individual considered a non-habitual resident earns the right to be taxed as such for a period of 10 consecutive years from the year of their registration as a resident in Portuguese Territory, having to fulfill the requirement of permanence every year.
For more information on the Fiscal Regime of Non-Habitual Residents, please contact us.