Portugal Non-Habitual Resident Taxation Regime

Dr . Antoine Saliba Haig | 23 Jan 2017

Portugal Golden Visa

The Portugal Non-Habitual Resident Taxation Regime was introduced in 2009 with the aim of attracting foreign individuals and their families to Portugal by making it beneficial from a tax perspective to become a tax resident in Portugal. This special tax regime thus applies mostly to highly skilled professionals, wealthy investors and retired individuals and applies for a consecutive 10 year period.

Eligibility 

One of the main requirements in order to benefit from this special tax regime is to become a Portuguese tax resident, not having been a tax resident in Portugal in the previous five years.

According to Portuguese Tax laws, an individual is deemed to be a tax resident of Portugal if:

  • One is physically present in Portugal for more than 183 days in a calendar year or
  • One owns property in Portugal on 31st December as a permanent residence 

To qualify under this regime, non-residents must first obtain a valid residence permit, and then register as a tax resident, and only then apply for the Non-Habitual Resident status. This special tax status has to be requested until March 31 of the year after taking up residency in Portugal.

Non-Habitual Resident Regime - Tax Treatment 

A beneficial tax treatment under the Non Habitual Resident regime applies for a 10 year period. The main tax benefits are the following :

  • Portugal source income liable to a special 20% rate if derived from a high value activity;
  • Foreign source income including pensions and dividends can benefit from a tax exemption in Portugal for a maximum period of 10 years;
  • Foreign source active income may also qualify for an exemption, provided that it is taxed in the source state under a tax treaty with Portugal.

Why work with us

We are able to advise you on the requirements and tax and legal implications of the Portugal Non-Habitual Resident Regime, and indicate expected time frames based on the specific circumstances and nature of your application. 


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Dr Jean-Philippe Chetcuti

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+356 22056411

Mr Kenneth Camilleri

Senior Partner, Global Immigration & Tax

+356 22056414

Dr Antoine Saliba Haig

Legal Associate

+356 22056446

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