Tax is an inevitable and important fact of life and we provide Portuguese tax advice to international Clients that intend to invest in, and/or move to, Portugal.
Our typical tax advice includes the analysis of the Portuguese taxation of each relevant category of income in the light of both Portuguese tax law and, where applicable, the relevant double taxation agreement, plus, if relevant, liaising with the Client's tax advisers in the country of source of the income.
So we can provide proper and timely advice before the Client makes a decision to invest in Portugal and/or move thereto, it is crucial that we thoroughly understand the Client's specific case, notably by ascertaining the full spectrum of the relevant income and the respective sources.
About Portugal's Non-Habitual Resident (NHR) Tax Regime
NHR status grants a new resident of Portugal a 10-year tax exemption on most non-Portugal-sourced types of income, whether or not they are taxed at source, and whether or not, under a double taxation agreement (DTA), tax at source is reduced (e.g. on dividends, interest or royalties) or even eliminated (e.g. on pension income derived from private sector employment). Holding NHR status does not have any disadvantage whatsoever, but, on the contrary, may grant important advantages. If you decide to move to Portugal, it is therefore highly recommended that you apply for it, even if it does not bring you any immediate advantage.
The NHR regime is open to anyone that meets the eligibility criteria and the only such criteria are that the applicant:
Once obtained, NHR status will not in principle be lost under any circumstances during its 10-year statutory period. Even if the holder suspends his/her Portugal tax residence during this period, he/she will automatically reacquire NHR status upon resuming such residence.
The Portuguese taxation of the main types of income under the NHR regime is broadly as follows:
* - Eligible occupations for those that become tax residents of Portugal on or after 1st January 2020 are as follows:
I - The following professionals, provided they hold at least (a) a level 4 qualification under the European Qualifications Framework, or (b) level 35 of the International Standard Classification of Education, or (c) 5 years of duly proven professional experience:-
II - Directors and Managers of businesses that promote productive investment in eligible projects that qualify for tax benefits under a concession agreement entered into under the Investment Tax Code
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