NHR Portugal – A Guide to Portugal’s Non-Habitual Tax Regime

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NHR, Portugal’s non-habitual residency tax regime, is something that has gained a lot of international excitement and attention. But as anyone who has tried delving into the scheme will know, it can quickly become a confusing topic. 

It doesn’t help that NHR status is quite a broad tax incentive but one that has different implications for pensioners, sole traders, company owners, or those who get paid in royalties (to name a few of the groups). If you have different types of income (say a pension but you also earn money as a freelancer) they are likely to both get taxed at different rates – and one may be eligible for NHR and the other not.

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Another issue is the name: non habitual residency sounds like it’s aimed at people who don’t live in Portugal. The opposite is actually true and to be eligible for the NHR scheme you need to be tax resident in Portugal. This means spending more than 183 days in Portugal in any 12 month period starting or ending in the relevant fiscal year OR spending less than 183 days in Portugal but maintaining a domicile (home) which suggests Portugal is your main and habitual residence[1]https://www.onelife.eu.com/wp-content/uploads/2019/11/ONE_COPR_PT_EN_NHR-e-book_1911.pdf.

But even though the topic can be confusing, the intentions of the Portuguese government are positive. Portuguese tax rates are high and the aim of the NHR regime is to attract foreigners to Portugal. 

The best way to think of NHR is a cushion. Rather than being subject to normal Portuguese tax rates, NHR cushions the blow for the first 10 years. In many cases it allows you to pay tax elsewhere or to pay a simple flat-rate. It also allows you to avoid double taxation. It doesn’t always mean that you’ll pay less tax than if you’d stayed in your home country, but it normally means you’ll pay less tax than if you were paying the standard Portuguese rates. And, you do have to consider what your taxes get you here, such as public healthcare, great weather, and access to beaches and beautiful scenery.

Who’s eligible: 

  • Anyone who hasn’t lived in Portugal for the past 5 years (foreigners or Portuguese)
  • Anyone who hasn’t been on the NHR scheme before (you can only join once)
  • Anyone who satisfies both of the rules above and also become tax resident in Portugal

Sample Rates

The following are some of the sample rates. Please note: these are examples, and may not apply to your situation. 

Pensions

The NHR treatment of pensions is quite straight-forward in comparison to other forms of income. Previously pensioners could receive their foreign income pensions tax-free in Portugal but, as of March 2020, and following complaints from other EU countries, it is now taxed at a flat rate of 10% under the NHR scheme[2]https://www.europeantax.blog/post/102g090/new-10-income-tax-charge-on-pensions-under-portuguese-nhr-regime.

This generally applies to all income that’s paid out after retirement e.g. European state pensions, IRAs, 401ks, US Social Security, LISAs, annuities, etc. 

There are some exceptions. For example, UK government service pensions – including local authority, army, police, teaching, fire service and some NHS pensions. These pensions do not come under NHR rules as they remain taxable in the UK only[3]https://www.blevinsfranks.com/non-habitual-resident-regime-nhr-portugal-tax-advantages/.

Remote workers

Normally if you’re an employee working remotely while living in Portugal, and your income can be taxed abroad, that’s where you’ll pay your taxes. You do also have the option of paying the 20% flat-rate if your activity is considered high value, so you will need to weigh up which is best for you. 

Employees in Portugal

High value activity professionals can benefit from a 20% flat rate of tax[4]https://www.lexology.com/library/detail.aspx?g=d343f685-dc44-4d9d-ae5a-fef9eb3a66ea (+ social security) which, depending on how much you’re earning, may be better than the standard Portuguese rates of tax. 

Portugal has a unique list of activities that it considers high value, and this gets changed every year. Example professions that have made the list in recent years include journalists, dentists, IT professionals, linguists, general managers and executive managers of companies, hotel managers, jewellers, and electricians.  

Freelancers/Self Employed 

Like employees, freelancers and the self-employed need to fall into the high value activity category to benefit from NHR[5]https://philippsauerborn.com/en/complete-guide-about-the-nhr-system/. If that’s the case, you would normally be subject to 20% + social security.[6]https://philippsauerborn.com/en/complete-guide-about-the-nhr-system/

A 20% flatrate may or may not be more advantageous than where you’re currently paying your taxes. It’s generally more advantageous for higher earners whose income above a certain threshold (e.g. €40k) would be taxed at a higher rate than 20%. 

However, NHR isn’t everything and you may find that, as a freelancer, the Simplified Regime offers you similar or even better tax rates. So, don’t despair if you don’t fall into the high value category and do weigh up whether the Simplified Regime is better for you. 

“John recently moved to Portugal and operates a freelance business, billing clients in his home country. Last year, his invoicing totalled €75,000. As a freelancer in the Simplified Regime, he is taxed on just 35% of his total income. 65% is automatically allotted to cover operating expenses. No further accounting is required. His annual tax is €5,625: just 7.5% of his gross income, far less than the 20% flat rate charges under NHR.” [7]https://www.eurofinesco.com/en/our-publications/sole_trader/1-simplified-regime/36-e2-sole-traders-a5-tablet-colour-cover-13th/file

Note: If you carry out multiple types of work, you may find that some of it is eligible for NHR under the high value activity rules and some is subject to standard Portuguese taxes.

Entrepreneurs – 20% 

Generally speaking, most entrepreneurs (or those that own at LTD/LLC company) end up paying 20% + social security. 

Some people manage to find ways around this. For example, setting up a company in somewhere like Estonia or even Malta where corporation tax is just 5%. 

It isn’t quite as straightforward as that, particularly due to Portugal’s effective management rule. This rule basically asks where is the company being effectively managed from: Portugal or Malta? To get around this, many people have to hire staff and have an office there and so you really have to be earning quite a bit to make all this hassle worthwhile. 

How to pay 0% tax

As discussed, most people won’t end up paying 0% tax, however, there are one or two cases where people do. This is normally on income that can be taxed abroad but, for whatever reason, isn’t. Dividends, interest, rental income from abroad, and royalties are some examples of income that may fall into this category. 

A few important points

Before delving into the specifics, there are a few important points that are worth highlighting early on. 

NHR is not a residency visa

A lot of people make the mistake of thinking NHR is some kind of residency visa. It’s not. NHR is purely tax-related. 

If you’re from outside the EU/EEA/Switzerland and you don’t have an EU/EEA/Swiss passport, you will most likely need to obtain a residency permit (such as the D7 or Golden Visa) to move to Portugal. Once you have moved to Portugal, you will be able to apply for the NHR program then but the two are not connected. 

See a list of residency permits here. 

NHR is worth applying for

For most people, the NHR regime offers more favourable rates than normal Portuguese taxes. Because of this, it’s worth applying for. 

Once you become resident in Portugal (i.e. officially move here) you have a window in which to apply for NHR. That window is 31st of March of the following calendar year. So, if you move in August you have until the following March whereas if you move in February, you would have until March of the next calendar year. If you don’t apply within that period, you lose the right to apply for NHR. 

You may not think it’s worth applying if:

  • You’re a student or even still in high school. 
  • You aren’t currently earning a lot of money.
  • You don’t know if you’ll stay in Portugal. 

Even still, because you only really get one opportunity to apply, it’s generally worth applying for. 

There is a tax credit system

If you’ve paid tax elsewhere, you can use that as a tax credit against your tax in Portugal. 

For example: you pay 5% tax on your pension in another country but Portugal wants to tax it at 10%. Now, you only have to pay 5% tax to Portugal. 

Everything needs to be reported

Even if you won’t be eligible for tax in Portugal – for example, if you have income from a rental abroad – you still need to report those earnings in Portugal. 

NHR normally means tax residency in Portugal

NHR is an extremely confusing term and many take it to mean it’s for people who don’t live in Portugal. In fact, the opposite is true: NHR is for people who live here and are tax resident here. 

NHR doesn’t cover capital gains

NHR generally doesn’t cover capital gains. 

If you sell a stock, for example, that would normally be subject to 28% capital gains tax in Portugal. The same applies for precious metals such as gold or silver. 

If you sell a property abroad, however, you wouldn’t normally have to pay capital gains in Portugal. 

Applying for NHR

Applying for NHR is as simple as ticking a box on the Finanças Portal or visiting Finanças. Note: unlike some visas where you can apply as a family, with NHR each person needs to apply individually. 

Before you can apply for NHR, you need to be resident in Portugal. You don’t need to apply for NHR the day you become a resident (as it will be backdated to the day you started your residency) but you do need to apply sometime before 31st of March of the following calendar year. 

For example. You become resident in July; you have until the following 31st of March to apply. You become resident in January; you have until 31st of March of the following year to apply. 

Getting expert help

Some parts of the NHR scheme are relatively straightforward – pensions are taxed at 10%, for example – and the application itself is literally as simple as ticking a box within the Finanças portal online. 

However, unless you have a very simple income (e.g. a pension which you know will be taxed at 10%) tax-related issues aren’t always straightforward. It may hurt to pay €100 for an hour-long chat with an accountant, but it’ll definitely be money well spent – assuming you find a good one, of course. 

Because tax and finance rules change all the time, it’s generally a good idea to get an accountant, particularly if you’re self-employed. 

FAQs

The following are some of the most frequently asked questions about the NHR program.

What happens after 10 years?

After the 10 years are up, you would move onto normal Portuguese tax rates. It isn’t possible to rejoin the NHR scheme if you’ve already been on it. 

Note: you can apply for Portuguese citizenship after 5 years (in practice it takes around 2 years to process). This is ideal for people who are mainly moving to Portugal for a Portuguese passport. 

Can I pause NHR if I leave?

While most people who apply for NHR will stay for the whole 10 years, there’s no requirement to commit for the full decade. You can leave and become a tax resident elsewhere, including your previous country. 

While you can’t pause those 10 years if you leave on say year 5, you can suspend it for a few years and return. You would lose out on the years that you were away but still be eligible to rejoin the program. 

Can I join the NHR scheme even if I don’t live in Portugal?

Normally, you need to live in Portugal, however, there are some circumstances where you might be resident in Portugal but not be present in Portugal for a lot of the year.

  • If you travel full-time, for example, and don’t maintain a residency anywhere else, you could use Portugal as your base as long as you have an address here.
  • The Golden Visa program, aimed at those from outside the EU/EEA/Switzerland, allows you to be resident in Portugal but only requires you to spend an average of 7 days per year here.

Written by

Hi, I'm James. I'm the main writer at Portugalist and the author of the book Moving to Portugal Made Simple. I started Portugalist because I felt there was a real lack of good quality information about Portugal and I wanted to change that.

This article was originally published in February 2021.

68 thoughts on “NHR Portugal – A Guide to Portugal’s Non-Habitual Tax Regime”

  1. Thanks for all the information. In applying for NHR status, do I need to fill out individual applications for both myself and wife?

    Looking forward to your reply.

    Howard

    Reply
  2. Hi James,

    Thank you so much for the amazing article and lots of quality discussion in the Q&A thread! I couldn't find a similar situation as me, so adding this question.

    I am Korean who moved to Portugal in May 2021 with my family reunification visa submitted. However, along with the SEF suspending most of appointments, I only have a pending application and don't have my residence card yet. If you know a lawyer or accountant who can help me apply for NHR, may I ask the introduction plz?

    Thank you!

    Reply
    • Hi Ys,

      Normally you need to be a resident before you can get NHR, but obviously you're stuck in limbo at the moment because of SEF so it seems unfair that you can't do anything now. I'll put you in touch with a lawyer and hopefully they will be able to help.

      Reply
  3. Hi, thanks for the great article.

    Would you be able to kindly provide an account for US-Portugal tax law?

    I would like to understand my estimated tax implications if I were to move to Portugal and work remotely for a US-based company.

    Reply
  4. Hi James,

    I am self employed and own an LCC company based in Florida. I work online providing recruiting services to pharmaceutical companies. All my income gets taxed in the US at 22-24% (federal rate). If I understand correctly from this sentence "If you’ve paid tax elsewhere, you can use that as a tax credit against your tax in Portugal." once I have paid my US taxes and file my year-end tax form in Portugal, I wouldn't be liable to also pay tax in Portugal on that same income, correct? I would just put the tax that I have paid in the US in the Portuguese tax form to get the credit and avoid double taxation. Did I understand this correctly?

    Reply
  5. Hi James,
    definitely one of the better articles I have read around the NHR scheme. I am a UK employee and have the option of working remotely. Can you refer me to an accountant as I have some questions around the scheme specific to my role.
    Thanks,
    Richard.

    Reply
  6. Hi James,
    I have an Estonian company with which I am working as a digital nomad. I was thinking about getting a residency in Portugal, while keep travelling around, renting long term.
    Do you know a good accountant I can consult with that is an expert about NHR and Estonian tax law?
    Thanks

    Reply
  7. Hi James, thank you for a great article. I am not sure if you can help with this but me and my husband still run a business in the UK (we are self employed). We also have property in the UK and in PT. We pay our PT taxes on our PT rental income. We have NHR status. Our PT accountant asked us for our UK income and said that we should be paying our taxes in PT on our UK income. My UK accountant is confused and so am I! Any advice please, thank you.

    Reply
  8. Hi James,

    Wonderful article, thank you! My husband and I are originally from Ireland but we live in the US and are planning on moving to Portugal and becoming non habitual residents. We have a roth IRA and 401ks from the USA. We have already paid taxes in the USA on the roth IRA and if I were to stay in US would owe no taxes on the roth but would owe taxes on the 401k.

    1) My question is are roth IRAs taxed the same as 401ks even though I've already paid taxes on the roth iras and do they tax 10% on everything withdrawn or only the investment gains? Doesn't seem fair or logical to treat them both the same.

    2) For capital gains tax if I sell stock in my investment accounts is everything taxed at 28% regardless of how long you own stock, in the US long term capital gains are more favorable than short term capital gains. Then does the 28% apply to the increase in value only, so if I bought it for 25k and sold it for 28k it would only apply to the 3k or is the full 28k taxed at 28%?

    Any suggestions would be much appreciated.

    Thank you,

    Catherine

    Reply
  9. Hi James,

    Could you please clarify something for me:

    - Danish citizen, moving to Portugal
    - Danish employer, salary paid in Denmark (remote work)
    - Approved under NHR
    --> isn't the whole point, that I would not pay tax in Portugal, and due to double taxation agreements, my income will not be taxed in Denmark, because I am no longer a residence there?
    If I am correct, I'd suggest correcting the Remote Working section to reflect this.

    Reply
      • Hi James,

        Well, that was my suggestion. I had missed the part about "it is necessary for that income to be actually taxed (e.g., through the application of a withholding tax rate) by the source state."

        I guess this means that I would have to either pay tax in Denmark or in Portugal. Since I do no longer have a residence in Denmark, I would no longer be tax liable there. Hence, I would have to pay tax in Portugal. One question though - I would actually be partially tax liable in Denmark on the days I spend in Denmark (working). Is it fair to presume that the Portuguese IRS would say: days you have paid tax on in Denmark are exempt from Portuguese tax, however, those days that are not taxed in Denmark, will be taxed in Portugal?

        Reply
        • I would make sure you definitely are no longer liable. Some countries will still want you to pay tax if your income is effectively earned there e.g. you own a rental property in the country even though you're not resident there.

          I would speak to an account (can pass your details on) as they can advise what would happen in practice. In some situations it's possible to claim a credit on any tax paid abroad against your Portuguese tax obligations. An accountant can advise and confirm.

          Reply
      • Hi James,

        Yes, this was more or less my suggestion.

        From what I can read, there is a requirement that the income in effectively taxed in the Source country.
        It is however unclear to me what "effectively taxed" means. I can imagine that it means that by end of the tax year, I will have to show my tax bill from "the Source country" that shows my full income has been taxed. However, I also read an interpretation that it means that as long as the Source country has the ABILITY to tax your income, the Portuguese IRS does not care whether you are actually taxed or not (in the Source country).

        Any views on the above?

        Reply
        • Hi Jesper,

          Basically, yes, although I'd speak to an accountant to confirm. Most income is taxable in either Portugal or the source country. Generally, the NHR regime isn't really about providing a way for people to pay no tax (although they did do that with pensions for a while and upset the EU) but sometimes there are grey areas.

          Reply
          • Gotcha. Thanks for the two answers (I couldn't see your first answer for some reason).
            I am in touch with a financial advisor to get clarification.

            Appreciate your time.

            Reply
  10. Hi James,

    Thanks for the informative article. Do you know how website advertising revenue would be taxed under the NHR scheme (coming from the US, like Mediavine 😉 ) Would it be 0%?

    Reply
      • I don't think so, but perhaps someone else will comment and confirm. I think the 12-month rental contract is a requirement from some consulates for certain visas (like the D7). The NHR regime isn't a visa.

        Reply
    • Hi Tim,

      It's a good question and one for an accountant. I know a lot of bloggers fall under the journalist category and pay 20% and other website owners class themselves as entrepreneurs and pay 20%. I would assume (if it does qualify for NHR) this would be the percentage.

      Some people setup companies in countries like Malta where corporation tax is lower - 5% I think - but have to go through a lot of work to prove that the company is actually based there and it's not effectively run by someone living in Portugal. 0% is a lot rarer than many websites make out.

      Reply
  11. Hey James, thanks for the great article. I am a US/Spanish dual citizen, but have only ever been a tax resident of the US. I moved to Portugal this past May, and am having quite a headache finalizing temporary residency as an EU citizen (keep being told different document requirements, 6x now!), which also complicates signing up for NHR, at the health center, and, of course, getting my Covid vaccination as well. Any chance you can put me in touch with an English-speaking agency that can help me get all of the above squared away? Cheers!

    Reply
    • Hi Xavier,

      That sounds like a nightmare! Some people have had success getting the vaccine by simply going to a vaccination centre with as many residency-related documents as they have and telling their sob story - https://www.portugalist.com/covid-vaccine-problems-portugal/

      As for all the other issues, I'll put you in touch with someone that can hopefully help.

      Reply
  12. Hello Carl,

    Thank you for this excellent overview. My girlfriend and I (EU citizens) are moving to Portugal and are at a bit confused as to whether or not she would be eligible for the NHR system and how she would pay her taxes. We are curious if you have a good expert to put us in touch with?

    Basically, we currently live in Belgium and my girlfriend, who is a Customer Success professional, currently has two offers to work for two foreign companies, one in the Netherlands and one from a US company. The Dutch company, with all of its business activities in the Netherlands, would most likely hire her in the Netherlands so that she would pay taxes in the Netherlands and we understand in this case she would pay 0% taxes in Portugal? On the other hand, if she accepts the offer from the US company, which also has no presence in Portugal and which has international business activities, she could register as an independent in Portugal (but apply for NHR status) and pay only 20% flat rate + social security on ALL income?

    Best regards

    Sam

    Reply
  13. Hi, n.
    I immigrated recently – from Denmark in this case. I am going for the NHR scheme to. Live in a rented apartment in the Seixal area on the southside of the Lisbon river. Am 53 years old and some remote part time hours on accounting and taxes for danish companies.
    On the NHR, I just had a bad experience on my first try to hire a lawyer and accounting in a 2-person-company to help me on the NHR and other tax and finance related topics. After signing and paying, I get no feedback/help.

    Could I ask you to put me in contact with a relevant portuguese accountant ?

    Thanks in advance.

    Reply
  14. Thanks for a very informative article. I am a US Citizen and I collect Social Security. All relevant taxes have already been taken and consequently, I am entitled to a certain amount, tax free, through my retirement. I don't think of Social Security as a Pension and would like to know if I would be expected to pay the 10% Portugese tax on money that has already been taxed. Thank you very much for your help with this!

    Reply
    • Probably best to speak to an accountant.

      There is a tax credit system to stop people being taxed twice. If you pay taxes on the income in the US you may be able to get a certain exemption on your Portuguese taxes.

      Reply
  15. I came to Portugal late 2020. My income is from private pension and non-Portuguese rental, so I applied for and obtained NHR in March 2021. I have asked for the assistance of an accoutant in filing my 2020 Portuguese return. They have told me a tax-free lump sum paid in the UK in January 2020 may be subject to Portuguese taxation. I really hope this isn't the case. My understaning was that only pension received in Portugal (post residency) was taxable in Portugal. Is this correct? Thanks

    Reply
  16. Hi James,
    I would be grateful if you could explain the tax on pensions arrangement between Portugal and Ireland. I have retired from work in Ireland and considering retiring to Portugal and it’s very difficult to get this information.
    Thanking you,
    Marlene

    Reply
    • Hi Marlene,

      I don't know about Ireland specifically, but if you have a pension from abroad and have NHR you would pay 10% tax on it.

      Reply
  17. Thanks for the information! This website is really helpful. A recommendation on an accountant to discuss this further would be greatly appreciated. If they could help with my D7 application, even better!

    Reply
  18. I became a NHR in Portugal before March 2020 when the rate was zero. Will I be pushed up to the 10% this year? Or will my rate remain zero since I joined when it was zero? Thank you.

    Reply
    • Hi Susan,

      I assume this is for pensions? You should be grandfathered in to the zero rate. The 10% is only for anyone who applies after that date.

      Reply
  19. Hi James,

    Thank you for the useful information/article!

    I'm an EU citizen planning to move to Portugal while working remotely from there (my employer is German company), so I'll be receiving my income outside Portugal (technically) in my German bank account.

    Do you think I'll be eligible for the NHR in this case?

    Reply
    • Hi Kemal,

      Yes. See the section of the article dedicated to remote workers.

      Just make sure your employer is okay with you working remotely. Not all are.

      Reply
  20. Hi James

    Great website - very helpful.
    I have acquired NHR status (that was easy!) but my contabilista is not really responding and it's frustrating. Do you have a suggestion for where to find a responsive English-speaking accountant who's well versed in NHR?

    Reply
  21. Hi James,

    I am Portuguese/USA Citizen married to USA Citizen and both living and working in The Netherlands. We have property in Portugal and we intent to move to Portugal for good while working from Home remotely for European based companies. Will NHR apply to both of us and if so can you forward us to an expert in this area?

    Thanks and great site btw

    Reply
    • Hi Edgar,

      It's open to both Portuguese and non-Portuguese as long as:

      * You haven't lived in Portugal in the five years prior
      * You haven't been on the scheme before
      * You become resident in Portugal

      It sounds like you'd meet those requirements. I'll put you in touch.

      Reply
  22. Thanks for a very helpful article. Are there any travel restrictions once I apply for NHR? I understand that the requirement is for 183 days of the year, but would need to travel back to the US for work and also other European countries for vacations. I’m wondering how that affects the 183 days and if I should keep a log as proof just in case.

    Reply
    • Hi Allen,

      You're asking a slightly complicated question without knowing all of your details.

      If Portugal is your only residence and tax residence then you should be spending 6 consecutive months or 8 months with gaps in Portugal per year during the five-year temporary residency period. This rule is more related to residency than NHR, but the two are connected.

      If you are planning to be in and out of the country a lot, it's a good idea to keep a log. It isn't normally asked for currently, but it could be in the future.

      Reply
  23. I have an investment portfolio in addition to my Soc. Sec. pension. I understand that the pension would be taxed at 10%. Would income and or capital gains be taxed in Portugal if the portfolio is in my home country?

    Reply
    • Hi Fred,

      This is a good question for an accountant. I'm just a writer, but can refer you to someone if you need.

      That said, I believe that shares are taxed in Portugal and subject to capital gains here. For the 10% rule to apply, it needs to be income that you can only receive at retirement age like a pension.

      As for other income, it depends on the type of income. Normally Portugal taxes you on your worldwide income, but under the NHR scheme you may be able to pay it elsewhere for the 10-year period.

      Reply
  24. Hi James,

    Thanks for the helpful write-up. My wife and I are looking to move to Portugal in the near future as remote US workers and are curious to know how this will impact the taxes we pay (both to the US and Portugal).

    We both receive income as W2 employees, although her W2 income is only from part-time work. Her main source of income comes via her personal design business where she holds contracts with individual clients. Any info/suggestions on who could help us better understand our situation RE: taxes would be greatly appreciated!

    Best,
    Josh

    Reply
  25. Hi James,

    I have NHR status in Portugal since a year, but I will be taking a job abroad for few years.
    Where in the Portal das Finanças can I request to suspend my NHR and ensuring I will not lose my status when I am back? Is there documentation required?

    Muito obrigado

    Laurent

    Reply
    • Hi Laurent,

      I think you will need to go into a Finanças office and speak to them.

      From a residency point of view, you are allowed to leave for up to two years for normal circumstances. If you're leaving for longer and came in on a visa like the D7, you should make sure this doesn't affect your residency rights.

      Reply
      • Hi James,

        "Before you can apply for NHR, you need to be resident in Portugal. If you move to Portugal on a visa, this will be the date that you moved to Portugal"

        You mean the 1st date arrived in Portugal , before obtained the staying permit from immigration office ?

        IE: arrived on November 01 of 2020, then the deadline of apply NHR is Mar 31 of 2021, rather than Mar 31 of 2022.
        As 2020 would be considered as 1st year of residence ?

        Reply
        • Hi Mike,

          I've edited the article slightly as it wasn't straightforward. Generally, it's March of the following year.

          If you arrived on November 01 of 2020, your deadline would be March 31 of 2021. However, if you arrived on January 01 of 2021, it would be March 31 2022.

          There is a lot of confusion over the start date for residency. I've heard some people say it's the day you became resident and others say it's when you became tax resident (which is often taken to mean when you changed your NIF to a Portuguese address). Still trying to get an answer on this one.

          Reply
  26. Great article - thanks. Does a remote worker in Portugal being taxed abroad also apply to their employer? I.e. if a US based company allows an employee to work remotely in Portugal, the employer can continue to be taxed in the US via the NHR scheme, but what's the impact to the employer? Would they continue paying normal US taxes as if the employee was still in the US?

    Reply
    • This would need to be looked at on an individual basis, particularly when it comes to paying social security payments in Portugal and payroll. Remote.com is one service that aims to make this easier for companies.

      Reply
  27. Hi, does NHR tax apply if I hold a residency permit, am retired or semi retired drawing my income from large savings account.

    Reply
    • Hi Kenny,

      I don't quite understand your question but I'll try to answer.

      Yes, NHR is an option if you hold a residency permit. Despite the name, it's something you apply once you become a resident. There are time limits on applying so be sure to read the notes in the article.

      Yes, it's an option if you're either retired or semi-retired. It's basically open to everyone as long as they haven't lived in Portugal for the past 5 years or signed up to the regime before.

      With regards to your savings account, is it located in Portugal or abroad?

      Reply
      • Hi James,
        Could you kindly continue the answer with a situation whereas the savings account were located in Portugal and monies were transferred between a US account to this savings account quarterly for example? Perhaps a pension in the US were to deposit into that US account, but not into the Portugal savings account.

        Thank you

        Reply
        • Hi Carl,

          If I understand the question correctly, you want to know if you'd be liable for taxes in Portugal if your pension was moved between accounts outside of Portugal?

          I'm not an accountant or tax advisor, but as I understand it if you're liable for taxes in Portugal, you're liable. It doesn't matter where your pension is paid from or what bank account it's paid into.

          I would really speak to a professional advisor if you're trying to avoid paying Portuguese taxes while being resident there.

          Reply

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