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How can I benefit from the Non-Habitual Resident tax regime in Portugal?

To benefit from the Non-Habitual Resident (RNH) tax regime in Portugal, you must register as a tax resident by December 31, 2023. This regime allows new residents to enjoy significant tax advantages during their first ten years in the country, making it ideal for buyers looking to relocate or invest. Eligible individuals must not have been tax residents in Portugal for the previous five years and earn income from specific high-value sectors such as scientific research or qualified employment. This is a perfect opportunity for those interested in leveraging Portugal's favourable tax environment for financial gain. If you register before the deadline, you can secure these benefits, potentially leading to substantial savings and a lower effective tax rate. The current state budget proposal for 2024 contains provisions to maintain these benefits, reinforcing the importance of acting now. Joining the RNH programme can be particularly appealing for expats and retirees drawn to Portugal’s pleasant climate and lifestyle. Savvy investors might also consider this a strategic move to enhance their income streams while enjoying a comfortable living. In addition, the proposed tax incentives will extend to new tax residents in specific fields post-2024. Consult with a local tax advisor to ensure compliance and maximise your financial benefits. Don’t miss out on this once-in-a-lifetime opportunity to enjoy life in Portugal while benefiting from its tax regime. Contact us for more information and personalized advice today!

Tuesday, 28 November 2023 - Fiscal
How can I benefit from the Non-Habitual Resident tax regime in Portugal?
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How can I benefit from the Non-Habitual Resident tax regime in Portugal? To benefit from the Non-Habitual Resident (RNH) tax regime in Portugal, you must register as a tax resident by December 31, 2023. This regime allows new residents to enjoy significant tax advantages during their first ten years in the country, making it ideal for buyers looking to relocate or invest. Eligible individuals must not have been tax residents in Portugal for the previous five years and earn income from specific high-value sectors such as scientific research or qualified employment. This is a perfect opportunity for those interested in leveraging Portugal's favourable tax environment for financial gain. If you register before the deadline, you can secure these benefits, potentially leading to substantial savings and a lower effective tax rate. The current state budget proposal for 2024 contains provisions to maintain these benefits, reinforcing the importance of acting now. Joining the RNH programme can be particularly appealing for expats and retirees drawn to Portugal’s pleasant climate and lifestyle. Savvy investors might also consider this a strategic move to enhance their income streams while enjoying a comfortable living. In addition, the proposed tax incentives will extend to new tax residents in specific fields post-2024. Consult with a local tax advisor to ensure compliance and maximise your financial benefits. Don’t miss out on this once-in-a-lifetime opportunity to enjoy life in Portugal while benefiting from its tax regime. Contact us for more information and personalized advice today!

Furthermore, anyone who meets the requirements for RNH and registers as a tax resident in Portugal by December 31, 2023, can still request RNH status and enjoy its benefits during the 10-year period. Additionally, POE 2024 proposes a new tax incentive for those who become tax residents from 2024 onwards, but only for the area of scientific research and innovation.

To be able to benefit from this regime, taxpayers must meet the following cumulative conditions:

 a) Have not been a resident in Portugal, for tax purposes, during the last five years;

 b) Has acquired tax residence in Portugal; and 

c) Earn income that falls into one of the following categories: 

  • i) Higher education and scientific research teachers, including scientific employment in entities, structures and networks dedicated to the production, dissemination and transfer of knowledge, integrated into the national scientific and technological system;
  • ii) Qualified jobs within the scope of contractual benefits to productive investment, in accordance with chapter II of the Investment Tax Code;
  •  iii) Research and development jobs for personnel with minimum educational qualifications at level 8 of the National Qualifications Framework (doctorate), the costs of which are eligible for the purposes of tax incentives for research and business development (SIFIDE).

The OE Proposal for 2024 also foresees extending the already existing Return Program, so that it applies to taxpayers who become tax residents in Portugal up to 2026 and who have not been tax residents in our country in the last 5 years. The Program allows a 50% tax exemption on income from employment and self-employment up to 250,000 Euros per year during the first 5 years of residence.

We will continue to closely monitor parliamentary discussions and possible proposed changes to the current text of the OE Proposal for 2024.

 Martínez-Echevarría & Ferreira has a team of competent lawyers and professionals qualified to provide advice in several areas of law. For questions related to tax matters, do not hesitate to contact our department. We are at your disposal through the usual channels and contact platforms.

 

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