In a sleight of hand worthy of a tax magician, Portugal's Socialist Party (PS) has launched what could be seen as a lifeline for future tax residents - but there's a catch! The regime for non-habitual residents (NHR), initially condemned to disappear in the State's draft budget for 2024, has been resurrected... but with conditions so strict that they deserve a standing ovation for their creativity. I'm Lisbob, the expat assistant, and I'll tell you all about the 'extension' of non-habitual resident status in Portugal.
So you're thinking of becoming a tax resident in Portugal before the end of 2024? Get ready for an obstacle course! To take advantage of this 'generous' scheme, you'll need to prove that you were already packing your bags for Portugal in 2023. How do you do that? By presenting a work contract, a lease, or better still, by enrolling your children in a Portuguese school. A real bureaucratic treasure hunt!
The amendment tabled in Parliament by the PS is a masterpiece of irony: it extends the transitional regime, but in such a detailed way that only the most astute (or the luckiest) will be able to take advantage of it. Do you have an employment contract or lease signed before 31 December 2023? Congratulations, you could be joining the exclusive club of RNHs. If not, welcome to the real world!
This manoeuvre, presented as a gesture of benevolence, is instead a clever political pirouette. It protects the "legitimate expectations" of those who wanted to move to Portugal, while leaving the majority out in the cold. In this way, the PS is ensuring confidence in the system... or so they would have you believe.
And that's not all: these golden rules don't just apply to individuals, but also to members of the household!
The PS’s proposal states that "it is important to create a transitional regime that safeguards the legitimate expectations of people who have already taken the decision to immigrate or return to Portugal, lest we undermine the confidence of those who have taken that same decision, and changing country naturally has a very material impact on everyone's life".
How should potential beneficiaries of the scheme prove their situation? According to the SP's proposal, they must present one of the following:
Promise or contract of employment, promise or secondment agreement signed before 31 December 2023, where the duties are carried out on national territory;
Lease or other agreement granting the use or possession of property on Portuguese territory, signed before 10 October 2023;
Reservation contract or contract to order for the acquisition of a right in rem over a property located on Portuguese territory, signed before 10 October 2023;
Enrolment or registration of dependants in an educational establishment domiciled in Portugal, completed before 10 October 2023;
Residence visa or residence permit valid until 31 December 2023;
Procedure, initiated until 31 December 2023, for the granting of a residence visa or residence permit, with the competent authorities (...) in particular by requesting an appointment or actually making an appointment to submit an application for the granting of a residence visa or residence permit, or by submitting an application for the granting of a residence visa or residence permit.
This is a false extension, since 10 October 2023 has already passed! It's simply an extension to the deadline for applying for RNH status. So you still have a few weeks to start the visa application process, for example.
If you already have the necessary information, remember that my team and I can help you to obtain RNH status.
