NHR - Non-Habitual Residence
NHR is a special taxation regime that is available under certain eligibility criteria to expats that recently moved to Portugal. This status grants certain tax exemptions and privileges over a 10-year period.
e-residence can guide and assist you throughout the entire NHR process.
It is crucial to ensure proper compliance with the applicable formalities in the year of relocation and in the subsequent years of residence in Portugal in order to fully benefit from the potential advantages of the NHR regime.
We offer a one-stop shop for all NHR related requirements of your move to Portugal, which include the following tax services:
- Initial personalized briefing on the NHR regime
- Arrival or registration formalities
- Applying for the NHR status
- Analysis and preparation of a High Value Added Activity
- Filing of personal income tax returns
- Ongoing tax and social security advice
Overview of the NHR regime benefits
0% tax on dividends
Foreign sourced dividends are taxed at 0%
0% tax on wealth
Portugal has 0% wealth tax, unlike other European countries
0% tax on foreign income
As determined by the applicable Tax Treaty or the OECD model tax convention, if no Tax Treaty is in force between Portugal and the country of source
20% tax on self-employment
Self employment (freelance) and employment considered as high value professions are taxed at 20%
No minimum stay requirement
There is no minimum stay requirement for EU citizens, if they have a rented or owned place to live
Fast track to an EU passport
After 5 years of living in Portugal, you can apply for Portuguese citizenship
How can you apply for NHR status online?
How can you apply for NHR status online?
Fill out a quick online application form
Upload all required documents
Receive your NHR confirmation documents
FAQ
Check our latest articles
As a part of its effort to attract foreigners, Portugal introduced the “Non Habitual Residency” tax regime which is commonly referred to as simply NHR. This regime encompasses a number of tax exemptions and privileges and its main aim is to provide an opportunity to optimise taxes for certain groups of people.
Currently with NHR in Portugal it is very convenient to trade and receive benefits from cryptocurrencies.
Generally speaking, most foreign-source income is tax exempt in Portugal, however there are conditions that must be met in order for this to apply.
In order to register as NHR, you need to have a NIF (no worries if you don’t have one, as you can always apply through our platform), and a permit to stay legally in Portugal (EU citizenship or Portuguese residency). You will also need to provide us with access to "portal das finanças", in order for a member of our legal team to change your fiscal status (you can change the password after we are done with your application).
Once you fill out your application and pay the fee, our legal team will complete the procedure to request the NHR status for you. On average it takes 2-3 weeks to handle this request.
Basically speaking, the NHR allows you to optimise your tax payouts and greatly reduce what you owe in taxes to the government. Even though it sounds sketchy, but this is a completely legal regime that functions according to all tax laws and it is globally renowned and accepted.
Many individuals who have undergone the process of obtaining an NHR or changing their tax residence have been asked by tax authorities to provide a СRUE. Recognizing this common challenge, we have written a comprehensive article detailing how to secure this document. Please follow this link to the article.
Portugal can be very tax-friendly for expats. While income is taxed at progressive rates of up to 48%, there are ways to reduce taxes on your investment and pension income.
A tax resident must apply to obtain NHR status until the 31st of Marth, during the year following the year of becoming a tax resident.
The Tax Residence Certificate is a document issued by the Portuguese tax authorities attesting that the person is considered tax resident in Portugal in a given fiscal year under the terms of the Portuguese tax law and for the purposes of the application of conventions to eliminate double taxation.
Portuguese citizens wishing to return to Portugal after residing in another country in the last five years.
After 10 years and, if you stay in Portugal, must pay tax at standard Portuguese rates going forward.
A special tax rate of 20% applicable to employment and self-employment income derived from a “high value-added activities”.
In order to register as a Non-Habitual Resident, applicants must meet the following requirements:
Be over 18 years;
Reside legally in Portugal;
Have tax residency status;
Not have been a tax resident for five years before the date of application.