In Portugal, there is (or was, for new applicants) the option to qualify for Non-Habitual Resident (NHR) tax status, a program specifically designed to attract new residents by offering tax benefits for a limited period.

To apply for RNH status, the following criteria had to be met:

Not having been considered a tax resident in Portugal during the previous 5 years;

Becoming a tax resident in Portugal, which entails:

- Staying in Portuguese territory for more than 183 days (consecutive or non-consecutive) within a 12-month period;

or

- Owning a residence under conditions that demonstrate the intention to maintain it as a habitual residence.

The application for registration as a non-habitual resident must be submitted by March 31 of the year following the year in which the applicant became a tax resident in Portugal.

Once granted, RNH status is valid for a period of 10 consecutive years, provided that the beneficiary continues to meet the legal requirements.

Certain types of income from abroad may be exempt from personal income tax, provided they meet the conditions set forth by law, namely:

Property income (rental income);

Capital gains (interest and dividends);

Capital gains;

Income from self-employment, when derived from high-value-added activities.

Pensions received from abroad are generally taxed at a flat rate of 10%.

Income from employment or self-employment, when derived from high-value-added activities, is taxed at a special rate of 20%.

Income Earned Abroad

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Pensions

Income Earned in Portugal

Income Earned in Portugal

Important Note

The Non-Habitual Resident regime has been amended effective 2024 and is no longer available for new applications in its traditional form, except in specific situations provided for under transitional provisions.