In order to attract highly qualified non-resident professionals in value-added activities to Portugal, as well as beneficiaries of pensions obtained abroad, the Investment Tax Code was approved (by DL 249/2009, of 23 September) in which the tax regime for the Non-Habitual Resident on IRS is created.
Who can request this status?
Any citizen who, after registering as a resident in Portuguese territory, meets the following conditions:
– Is considered, for tax purposes, resident in Portuguese territory, in the year for which it intends to start taxation as a non habitual resident;
– Has not been considered resident in Portuguese territory in any of the five years preceding the year in respect of which you wish to be taxed as a non-habitual resident.
Thus, in case you already have the Portuguese tax identification number (NIF) but are still registered as a non-resident, you should previously request the change of address and status to resident online or in an AT department. For this you will need to prove that you live in Portugal through a registered rental contract or property acquisition.
After submitting the application for NHR status you can obtain, through the AT platform, the respective proof, in PDF format.
Thereafter, the citizen who is considered to be a non-habitual resident acquires the right to be taxed as such for a period of 10 consecutive years from the year, inclusive, of his/her registration as a resident in Portuguese territory, provided that in each of those 10 years he/she is considered resident there. This 10 year period is non-extendable.
It should be noted that the enjoyment of the right to be taxed as a non-habitual resident, in each year of the above mentioned period, depends on being, in that year, considered resident in Portuguese territory.
Income obtained abroad is exempt, however, such income (categories A, B, E, F, G and H) must be aggregated for the purposes of determining the rate to be applied to the other income.