A Guide to the Non-Habitual Resident Regime

Portugal's Non-Habitual Resident (NHR) Regime is an attractive program for those considering moving their tax residence to this beautiful country. In this blog, we dive deeper into the NHR regime, what it means for expats and how you can take full advantage of the tax benefits.

Understanding the NHR regime

The NHR regime is a tax scheme specifically designed to encourage professionals, retirees, and other qualifying individuals to settle in Portugal. Under certain conditions, you can enjoy significant tax benefits over a period of ten consecutive years.

Who Eligible?

Expats who have not previously been tax residents in Portugal may qualify for the NHR regime. This includes professionals with specialized skills, as well as pensioners who receive a fixed minimum income.

Tax Benefits of the NHR Regime

One of the key benefits of the NHR regime is the low tax rate on income from foreign sources. Some income, such as pensions and royalties, may even be fully exempt from taxes during the first ten years of residence in Portugal.

Step-by-step Application Process

The application process for the NHR regime requires careful documentation and compliance with specific requirements. A detailed overview of the application process and the required documents is essential to ensure a smooth transition.

Impact on Real Estate Investments

The NHR regime also affects real estate investments. Expats can benefit from a favourable tax environment when purchasing real estate and generating rental income.

Advice and Support

It's recommended that you work with tax advisors and legal experts who are familiar with the NHR regime to make sure you're fully compliant and taking full advantage of the benefits available.

Portugal's NHR regime offers a unique opportunity for expats to enjoy a tax-friendly climate and the country's rich lifestyle. With the right knowledge and guidance, the NHR regime can be the key to a successful and tax-efficient transition to Portugal.