Tax & financial advice for expats in Portugal

Good news! 
 
Many expats who were eligible for NHR status didn’t apply - either because they weren’t aware of the program or received incorrect advice - resulting in unnecessary tax payments.

Following a recent ruling from Portugal’s Supreme Administration Court, it may still be possible to apply for Non-Habitual Residence (NHR) status – even if you missed the initial deadline. 
 
The detail 
 
To qualify for NHR status, one of the key requirements is that you must not have been a tax resident in Portugal for the five years preceding your arrival and application. 
 
Traditionally, the deadline for NHR applications is 31^st March in the year following the start of your tax residency e.g. if you became resident on 1^st June 2017, the application deadline was 31^st March 2018. 
 
As a result of this ruling, if you were eligible at the time of arrival in Portugal you may still apply for NHR, although the NHR period will start from your original residency date i.e. if you became tax resident on 1^st June 2017, the end date of NHR will be 2026. 
 
NHR – a taxation no brainer 
 
To recap, the benefits of NHR lasts 10 years and offers:

• 0% tax on foreign dividends and interest
• 0% tax on capital gains from non-Portuguese property
• 10% income tax on foreign pensions
• 20% tax on income from "high-value" professional activities

These benefits make NHR one of the most attractive tax regimes in Europe. If you’re eligible under this new ruling, it is highly advisable to consult with your lawyer or accountant to review your status and potentially apply.

If you need any assistance in evaluating your investment and pension planning in light of NHR, we would be pleased to assist. 
 

Best wishes,
Mark & Debrah