NHR status is back in Portugal
The rules governing NHR tax status had been extensively modified by former Prime Minister Antonio Costa, and had become virtually impossible to obtain. The new Portuguese government has announced that it wants to reintroduce this famous non-habitual resident status, but not without a few changes. I'm Lisbob, the expat assistant, and I'll tell you all about the return of the NHR status programme.
The Portuguese government recently announced the return of the Non-Habitual Residents (NHR) scheme, a crucial initiative aimed at attracting more foreigners and boosting the national economy. The scheme, which was suspended the previous year, is back with significant adjustments to better meet the country's current needs. This new feature will form part of the package of measures that the Portuguese Minister for the Economy will present to the Council of Ministers on Thursday.
Non-Habitual Resident (NHR or RNH) status is an advantageous tax regime for new tax residents in Portugal. This status offers reduced taxation of 20% on income from specific professions for a period of ten years. However, it is important to note that pensioners are no longer eligible for this scheme, as the Portuguese government now wishes to focus its efforts on working professionals.
According to Joaquim Miranda Sarmento, the tax regime will maintain a rate of 20%, covering only salaries and professional income, but excluding dividends, capital gains and pensions, to avoid conflicts with countries such as Finland and Sweden. The precise details of the programme have not yet been revealed, but I'll keep you posted as soon as possible.
The Finance Minister specified that Portuguese people who have lived abroad will benefit from these incentives without having to buy a house. However, the government will not go back on the golden visas linked to property purchases. He expressed the executive's confidence in approving these tax benefits, despite opposition from the PS and Chega.
The return of Non-Habitual Resident status marks an important step in Portugal's economic strategy. By reintroducing this attractive tax regime, the government is seeking to attract a new wave of foreign talent and investment, essential for the country's economic growth. This initiative underlines Portugal's desire to position itself as a major player on the international stage, offering an enviable living and working environment for expatriates from all over the world.