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Non-Habitual Resident Tax Regime (NHR)

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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.


Applicants must:
  • 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);
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
  • Professors
  • 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).


  • Applies to Personal Income Tax (IRS) for a fixed period of 10 consecutive years from the date when the individual became a tax resident.
  • Requires that the person is a tax resident in each of the 10 years.
  • If during the 10-year period the person ceases to be a tax resident in Portugal, the regime will not apply for that year but may be resumed as soon as the person regains tax residency.


  • 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.


  • Registration as a tax resident.
  • Submission of application to the NHR scheme until March 31st of the year following that in which the individual becomes a tax resident.
  • Automatic granting of the status of high value-added activity.
  • Preparation of documents attesting to the high value-added activity in anticipation of an audit.
  • Submission of Personal Income Tax (IRS).
  • Potential audit.

Visit the Tax Authority's website and browse the NHR Brochure