Your Property Specialists
Email Address Share
  1. Home
  2. Blog

What are the new tax incentives for residents under POE 2024?

Under the POE 2024 proposal, new tax residents can benefit from exciting tax incentives starting in 2024. These changes are designed to encourage individuals with expertise in scientific research and innovation to settle in Portugal, making it an attractive location for experts and entrepreneurs. This programme provides a unique chance for those looking for relocation and investment opportunities to enjoy reduced tax rates and exemptions in their first years. Current RNH holders can retain their benefits even with the proposed termination of the RNH regime, making it crucial for new residents to apply for RNH status by the end of this year. Additionally, the proposed tax incentives will provide a 50% tax exemption on employment income for five years for eligible individuals, making moving to Portugal a financially sound decision. As the country continues to be a hub for research and development, it’s an opportune moment for individuals looking to advance their careers in these fields. By taking advantage of the new tax benefits, you can enhance your quality of life while minimising tax exposure. Stay updated on the proposed changes by monitoring discussions around the state budget, as these could further benefit potential new residents. The landscape is evolving, and with it, the potential for financial advantages. To explore how these incentives align with your plans to move to Portugal, contact us today for tailored advice.

Tuesday, 28 November 2023 - Fiscal
What are the new tax incentives for residents under POE 2024?
Open Gallery
What are the new tax incentives for residents under POE 2024? Under the POE 2024 proposal, new tax residents can benefit from exciting tax incentives starting in 2024. These changes are designed to encourage individuals with expertise in scientific research and innovation to settle in Portugal, making it an attractive location for experts and entrepreneurs. This programme provides a unique chance for those looking for relocation and investment opportunities to enjoy reduced tax rates and exemptions in their first years. Current RNH holders can retain their benefits even with the proposed termination of the RNH regime, making it crucial for new residents to apply for RNH status by the end of this year. Additionally, the proposed tax incentives will provide a 50% tax exemption on employment income for five years for eligible individuals, making moving to Portugal a financially sound decision. As the country continues to be a hub for research and development, it’s an opportune moment for individuals looking to advance their careers in these fields. By taking advantage of the new tax benefits, you can enhance your quality of life while minimising tax exposure. Stay updated on the proposed changes by monitoring discussions around the state budget, as these could further benefit potential new residents. The landscape is evolving, and with it, the potential for financial advantages. To explore how these incentives align with your plans to move to Portugal, contact us today for tailored advice.

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.

 

© Martinez Echevarria & Ferreira, Law Firm - Tax Department

contact us   +