NON-HABITUAL RESIDENT STATUS
In 2009 Portugal created the Estatuto dos Residentes Não Habituais or Non-Habitual Residency Statute, by decree-law nº 249/2009, which is listed in the tax investment code, subsequently changed to the new investment tax code by decree-law nº 162/2014. This statute aims to stimulate the local economy by attracting investment, importing capital and skilled labour into Portugal.
In relation to this, anyone who has not qualified as a tax resident in the country for the last five years prior to application of this statute can obtain tax benefits. It should be emphasized that this statute only applies to foreign or Portuguese citizens who have not lived in the country for more than five years.
Non Habitual residents with income dependent or independent of Portuguese sources, considered to be of high scientific, artistic or technical value, are subject to IRS of a special rate of 20% for a period of ten consecutive years, commencing in the year of registration as a resident in national territory. Professions such as architects, engineers and similar trades, artists, actors and musicians, auditors, doctors and dentists, professors, psychologists, freelance professionals, technicians and assimilated professions, investors, administrators and managers.
In addition to this benefit, non habitual residents are exempt from taxation of income earned abroad in certain situations, in particular, when concerning pensioners or retirees, where income is taxed in the country of origin, thereby avoiding double taxation.
The statute of non habitual resident can be applied for at The Registry of Taxpayers at the Tax and Customs Authority (Registo de Cadastro de Contribuintes da Autoridade Tributaria e Aduaneira).
What are the main advantages of the Non Habitual Resident Statute?
Taxation at a fixed rate of 20% for a period of 10 years on income earned in Portugal and no double taxation on pensions, retirement and dependent or independent income earned abroad.
How can I obtain Non Habitual Resident status?
By not having lived in Portugal for the last five years. Registering as a tax resident at the Finance department (Finanças) dependent on having lived in Portugal for more than 183 consecutive or interspersed days within Portugal or to have accommodation by 31st of December of that year, in a condition which supports your intention to occupy and maintain it as your main residence. Request your registration as Non Habitual Resident online at the Portal das Finanças. Following registration as a resident in Portuguese territory until March 31st of the following year.