The NHR regime is designed to promote the transfer of residence to Portugal for investors, specialised professionals and entrepreneurs. This regime applies to single persons and provides for the reduction, or exemption, from income tax of dependent or independent workers regarding pensions, capital gains and other income (interests, royalties, dividends) for a period of ten years.
- Wages obtained in Portugal arising from a high value-added activity (defined by ministerial order) have a flat taxation rate of 20%
- Income obtained abroad may be totally exempt:
- For property income, rentals and capital gains the exemption applies to the income that can be taxed in the country of origin, provided it is not considered a "tax haven"
- For benefits and retirement pensions the exemption is granted, provided that the income is not considered as obtained in Portugal
To be considered as a tax resident in Portugal according to the rules of taxable resident you must:
- Stay in Portugal for more than 183 days in a period of 12 months
- Have a property that can be considered as usual residence on December 31st of the year in question
- Not have been taxed in Portugal in the last five years