Special Tax Regime for non-habitual residents

Part of a broader strategy to attract foreign investment (and Ultra and High Net Worth Individuals) and increase its economic competiveness, becoming a premium real estate location as well as one of the leading EU countries in R&D and new technologies, in 2009 Portugal introduced a privileged (voluntary) Personal Income Tax regime for non-habitual residents, intendent to attract:

• Skilled professionals in high added value activities, of scientific, artistic or technical nature;

• Entrepreneurs and investors (know-how, intellectual and industrial property);

• Retired individuals, beneficiaries of pension schemes granted abroad.

These will be tax exempt regarding most foreign income, while benefiting from a reduced taxation on some Portuguese income, provided some conditions are met.


The non-habitual resident tax regime is available to applicants that meet all of the following conditions:

1. Are entitled to Portuguese residency;

2. Have not been taxed as Portuguese residents in the 5 years prior to acquiring Portuguese residence;

3. Apply for Portuguese tax residency.

The non-habitual resident status, for tax purposes, applies for a consecutive 10-year period, provided that the conditions for maintaining Portuguese tax residency are fulfilled during each year of that period.

Partner: http://www.connectmind.pt/

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