Non-Habitual Resident (NHR) Portugal - FAQ

Frequently Asked Questions about the Tax Regime in Portugal under the NHR Status

1. Am I exempt from paying taxes if I am getting paid in another country?

If your salary is paid in a country that has a double tax treaty with Portugal, you as a non-habitual resident will be free from double taxation in Portugal.

 

2. What types of incomes are tax-free under the NHR Status?

Under the NHR regime, most foreign-source income is 10 consecutive years exempt from Portuguese taxation, as is income taxable in another country.  

This implies that British expats are likely to obtain tax-free UK pension revenue, rental revenue, real estate capital gains, interest, dividends, and non-Portuguese jobs earnings.

 

3. What if my income is paid in Portugal?

You may still be qualified for important income tax cuts depending on your job or source of revenue.

 

4. When am I recognized as a tax resident in Portugal?

You are granted the tax resident status if you: 

a) have lived in Portugal for at least 183 days (consecutive or not) within a 12-month period; 

b) have lived in Portugal for less than 183 days and, on 31 December of that year, you have a house / flat in a situation that indicates that you plan to keep it as your usual place of residence.

 

5. Where should I reside in Portugal?

Check out our Guide to Portugal to choose your preferred place to live.

If you’re a non-EU citizen, you can also take advantage of the Portugal Golden Visa programme.

 

6. What are the advantages of Portugal’s Non-Habitual Residency?

Portugal NHR status provides tax advantages to those who establish their residence for Portuguese tax purposes, enabling them to have tax breaks for 10 consecutive years. Read our article about Relocating to Portugal after Brexit here.

7. Are you coming to work?

If you come to Portugal for work you will profit from a 20% fixed income tax (IRS). This reduced tax rate refers to all high-value-added skilled professionals. The professions list includes jobs such as architects, doctors, tax consultants, senior managers, educators, and designers. See the list of the professions below.

8. Are you retiring abroad?

You can profit from Portugal NHR status if you are a pensioner and are moving to Portugal. All pension incomes from outside Portugal are exempt from IRS payments but earned in Portugal. This is because where double tax agreements exist (such as with Portugal and France for instance), the right to raise taxes falls into the country of residence. Portugal currently exempts retirees from paying taxes on their non-Portuguese pension incomes.

If you’re looking for a nice place to live or spend your stay in Portugal, we can also help you find a house or property > here.