The NHR tax regime aims to attract to Portugal non resident professionals qualified for activities with high added
value intellectual or industrial propriety or know-how, as well as beneficiaries of pension schemes granted abroad.
- Live in Portugal for 183 days or more (consecutive or not) in 12 months (yearly);
- Not have been tax residents in Portugal five years prior to applying for the non-habitual resident status;
- Buy or rent a house in Portugal (to be submitted as proof of residency);
Professionals must submit proof of pursuing a high added value activity.
Professional activities covered by the non-habitual resident tax regime, as of 1 January 2020 (except
if the application is submitted by 31 March with reference to 2019), are:
- General managers and executive managers of companies
- Administrative and commercial services managers (e.g., Finance, HR)
- Production and specialised services managers (e.g., farming, livestock, forestry, fishery, mining industry, transports)
- Managers of hotels, restaurants, trade and other services
- Experts in physics, mathematics, engineering and similar fields (e.g. chemistry, statistics, urban planning, design and others)
- Physicians (e.g. generalists and experts)
- Dentists and stomatologists
- ITC experts (e.g. developers)
- Authors, journalists and linguists;
- Creative and performing arts artists (e.g., musicians, producers, actors, dancers, etc.)
- Intermediate level science and engineering technicians and professionals (e.g, mining industry, life sciences)
- ITC technicians (e.g., telecommunications and radio)
- Market-oriented farmers and skilled agriculture and livestock production workers
- Market-oriented skilled forestry, fishery and hunting workers
- Skilled manufacturing, construction and crafts workers, including skilled workers in the fields of metalwork, food processing, woodwork, clothing, handicrafts, printing, manufacture of precision instruments, jewelers, artisans, electricians and electronics professionals
- Facility and machinery operators and assembly line workers, namely operators of fixed installations and machinery
- Directors and managers of companies carrying out productive investment activities, to the extent such personnel is engaged in projects for which contractual tax benefits have been granted under the Investment Tax Code.
* Workers mentioned above must at least have a level 4 qualification on the
European Qualifications Framework or a level 35 on the International Standard Classification of Education
(ISCED), or they must submit evidence of five years working experience in that specific field.
* Qualification as NHR does not automatically grant access to tax benefits (additional requirements apply depending on the type of income).
- Exemption on foreign dividends, interest and capital gains as long as these are taxable at source within an applicable tax treaty.
- Exemption on foreign pensions if not sourced in Portugal (allows for double exemption depending on the applicable tax treaty)
- Exemption on foreign employment income if it is effectively taxed at source.
- Exemption on foreign self-employment income if it derives from a high added value* activity and it may be taxed at source according to the applicable tax treaty.
- Reduced 20% flat tax rate on domestic employment and self-employment income if derived from a high added value activity.
* All income not falling into the above categories is taxed at standard resident tax rates.
Visit the Tax Authority's website and browse the NHR Brochure