The Uncertain Future of the Non-Habitual Resident (NHR) Tax Regime

10 November 2023

On 9th November, the President of Portugal announced the dissolution of the parliament and called for an early general election on 10th March 2024, following the resignation of the Prime Minister, as mentioned earlier in this article.

 

In the national address, the President announced the scheduling of elections for 10th March 2024, ensuring the discussion and approval of the 2024 state budget, with the final vote scheduled for 29th November 2023.

 

At this stage, there are three possible outcomes for the future of the Non-Habitual Resident (NHR) Tax Regime:

1.    The termination of NHR in 2023 is approved, as proposed in the State Budget;

2.    The end of the tax regime is extended beyond 31st December 2023;

3.    The initiative is removed from the State Budget.

 

Until 29th November, there is no certainty regarding the future of the NHR tax regime. We recommend taking action before the end of 2023 to avoid potential issues, given that the official end date is still 31st December 2023.

 

If you have any further inquiries regarding this matter, please do not hesitate to contact us.


Photo Credit: © Rui Ochoa / Presidência da República

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