Tax benefits of the Non-Habitual Residents’ regime
In general terms, the regime offers the following benefits:
- Special rate of 20% applicable to employment and self-employment income from "high value-added activities".
- Exemption (with progression) for foreign source income, provided certain conditions are met. In most cases, capital gains on securities will be taxed.
- A flat rate of 10% on pensions from a foreign source, as well as to other payments from pension funds and similar retirement schemes.
Taxpayers can benefit from the regime for a period of 10 years, counting from the year in which they became tax residents in Portugal.
Eligibility conditions for the special regime
The Non-Habitual Residents’ regime was recently revoked, and its application is currently limited to taxpayers who have become tax residents in Portugal by 2024.
For taxpayers who have become residents in 2024 but who have not registered under the regime, the application of the regime may still be considered.
Discover some of the additional benefits of residing in Portugal and other opportunities that the Portuguese tax system offers to individuals.
Other beneficial aspects of the Portuguese tax system for individuals
- Tax exemption on gifts or inheritances for spouses, descendants or ascendants.
- Exclusion of tax on free transfers of assets, by gift or inheritance, due to the application of territoriality rules, or liability to a flat 10% Stamp Tax rate.
- There are no wealth taxes or taxes on the repatriation of funds, whether to Portugal or abroad.
- Beneficial tax regime for individuals starting a self-employed activity in Portugal.
- Beneficial tax treatment for pension funds and other life insurance products (including unit-linked life insurance).
- Portugal takes advantage of the EU non-discrimination rules and has signed around 80 double tax treaties.
→ Why should Portugal be on your list of destination alternatives?
Portugal is part of the European Union, the Eurozone and the Schengen area. With a stable political and social environment, a safe society, a highly qualified workforce fluent in English and an excellent quality of life, it is no surprise that Portugal is becoming a top choice for anyone wishing to reside in the European Union.
If you want to add to this an extremely competitive tax regime, Portugal should not just be on your list of options, it should be at the top of it.
Why Portugal?
Geostrategic position
Between Europa, América and África
6th Position
No English Proficiency Index
10
Airports
7th Position
No Global Peace Index
15th Position
On quality of life for expats
5 Years
Best city for a getaway in the world
3 Years
Best tourist destination in the world
7 Years
Best Golf Destination in the World
How can we assist?
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Comprehensive analysis of the tax implications of moving to Portugal, taking into account the Non-Habitual Residents’ regime, as well as other applicable tax regimes.
■Assistance with the tax registrations before the Portuguese tax authorities and with the registration under the Non-Habitual Residents’ regime, as well with other special tax regimes.
■Assistance with the compliance with tax obligations, including the preparation and submission of annual Portuguese income tax returns.
■Regular tax advisory services on tax and social security matters in Portugal.
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