As 2024 draws to a close, so does the end of the Non-Habitual Resident (NHR) regime as we know it.
The NHR is an attractive regime from a tax point of view, aimed at new foreign residents, as well as Portuguese citizens living abroad who have returned to Portugal.
For a period of 10 years, the Non-Habitual Resident benefits from more favorable IRS (Personal Income Tax) taxation on income from high value-added activities of a scientific, artistic or technical nature.
If you do not benefit from this regime, you can still obtain it if you meet the following conditions:
(1) Not having been considered resident in Portuguese territory in any of the five years prior to the year in which you want the NHR to apply to you;
(2) Being considered a tax resident in Portugal, by changing your address next to the Tax Authorities by December 31, 2024:
· For having stayed in Portugal for more than 183 days; or
· By having a dwelling in conditions that suggest a current intention to maintain and occupy it as a habitual residence.
(3) Meet one of the following conditions demonstrating your intention to change your residence to Portugal in 2023:
i) Promise or employment contract, promise or secondment agreement entered into by December 31, 2023, as long as the performance of those duties must take place in national territory;
ii) Lease agreement or other agreement granting the use or possession of real estate in Portuguese territory signed by October 10, 2023;
iii) Reservation contract or promissory contract for the acquisition of a right in rem over real estate in Portuguese territory signed by October 10, 2023;
iv) Enrollment or registration for dependents in an educational establishment domiciled in Portuguese territory, completed by October 10, 2023;
v) Residence visa or residence permit valid until December 31, 2023;
vi) Procedure, initiated until December 31, 2023, for granting a residence visa or residence permit, with the competent authorities.
Members of the household of the person covered by the regime still in force can also apply for the tax benefit, provided they meet the first two requirements.
Registration as a Non-Habitual Resident under these criteria can still take place until March 31, 2025, provided that the change of tax residence is formalized by the end of 2024.