NHR

In plain words

NHR (Non-Habitual Resident) is Portugal’s preferential tax regime for those who become tax residents of the country for the first time. It was created to attract professionals, retirees and wealthy people to Portugal by offering reduced tax rates for a set period — as a rule, up to 10 years.

The essence of the regime is favourable taxation of certain types of income: part of foreign income, income from qualifying activities and a number of other categories under preferential rules instead of the usual progressive rates. For many people moving to Portugal this made the country especially attractive financially, complementing visas such as D8 and golden visas.

An important point: the NHR conditions have changed in recent years — the regime has been reformed, and the rules for new applicants differ from the old ones. That is why outdated information cannot be relied on: the current conditions must be checked and residence planned in advance. We calculate the tax consequences for the specific situation rather than promising reliefs that may no longer exist.

Where the NHR regime matters

What matters about NHR

How to work with NHR

1. 01Checking the current conditions
2. 02Calculating the tax consequences
3. 03Planning residence
4. 04Registering the status
5. 05Preferential taxation

What you need to know

• NHR is Portugal’s preferential tax regime
• For those who have become tax residents for the first time
• It gives reduced rates for up to 10 years
• The conditions have changed in recent years — the regime has been reformed
• You need to rely on the current rules, not outdated ones

Common mistakes

• ✕Relying on outdated information about the regime
• ✕Not checking the current conditions for new applicants
• ✕Moving without calculating the tax consequences
• ✕Assuming the relief is automatic on moving
• ✕Not planning the moment residence is acquired

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