Revocation of the Non-Habitual Resident Regime

Despite the government’s resignation, the State Budget for 2024 was approved and revoked the NON-HABITUAL RESIDENT (NHR) regime that was in force, starting from January 1, 2024.

There’s not much time left, but there’s still the possibility of benefiting from one of the most attractive schemes in Europe by registering as a non-habitual resident and gaining the right to pay lower income tax for a decade. The possibility of joining the Non-Habitual Resident regime is foreseen until March 31, 2024, for the year 2023, but only for those who still meet the necessary conditions as of December 31, 2023. What are these conditions?

Firstly, the taxpayer must have lived outside Portuguese territory for at least five years and, at a certain point, become a tax resident here, meaning spending at least 183 days a year in Portugal. If so, the individual may benefit from a single IRS rate (of 20%), just by engaging in an activity considered to have “high added value,” such as tax consulting, law, company administration or management for productive investment, architecture, sculpture, music, acting, dancing, painting, medicine, design, psychology, computer programming, scientific research, archaeology, or university teaching. If a pensioner, a flat IRS rate of 10% applies.

Then, one must obtain their NIF. The NIF is the Fiscal Identification Number that unlocks everything in Portugal. It’s a unique 9-digit number assigned by the Portuguese Tax Authority (commonly referred to as Finanças). Without it, you can’t do anything… not even open a bank account. Part of our services includes preparing all the paperwork and acting on your behalf. The Venture Builder is your partner to guide you through all stages of coming to Portugal, whether with “Relocation” or opening your company in Portugal. We handle all legal and bureaucratic registrations, allowing you to benefit from the experience of our consultants and partners from the Market-Place Service Club. Our support includes tax, accounting, economic and financial advisory, strategic consultancy, innovation, and technology.

Interested or still have questions? Learn more about our upcoming webinar here.