NHR-Non Habitual Residency and taxes

 

Porugal's tax system has some similarities to other European contries but there are also great differences. One should therefore have respect and clarify important issues of a tax nature. We work with several competent, both large and small Portuguese  and non-Portuguese tax consultants and can recommend the one that best suits you.

Portugal has several advantages, including no inheritance tax, no gift tax and no wealth tax.

 



NHR-Non Habitual Residency


In 2009, Portugal introduced a special tax status, NHR, aimed at all EU citizens. There are few conditions to be met in order to obtain the status that applies for a maximum of 10 years, namely;

  • One must not have been a tax resident or have done business in Portugal for the past five years, and also,
  • You must have a permanent residence in Portugal when the application is made.

Based on the double taxation agreement that applies to the countries in between, taxation on, for example, certain private occupational pensions will be 0%. If you also continue to work with Portugal as a starting point, the tax rate for certain occupational categories will be as low as 20%.


Capital gains tax on the sale of housing is payable, however, it is only 50% of the profit that is taxed. Deductions may also be made for any documented improvements in the property, brokerage and lawyer fees and the taxes you once paid on the acquisition.


Property tax, see Buying guide property tax

 

Non Habitual Residency (NHR)

Contact us with your questions, we can answer several of your questions and can lead you to the right specialist.

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