Non-Habitual Resident Status (NHR)

Lamares, Capela & Associados provides all services related to NHR in Portugal, which is a tax status intended for Portuguese or foreign citizens who already reside legally in Portugal and who cumulatively fulfil the following requirements:

Have not been considered as residents in Portugal in the last five years;
Are considered residents in Portugal, which occurs by:
(i) Remaining more than one hundred and eighty-three consecutive or non-consecutive days within any period of twelve months, beginning or ending in the relevant year; or
(ii) In case of remaining for a shorter period of time, having a housing on any day within the twelve-month period in such conditions that will lead to the assumption of intending to be kept and occupied as an habitual residence.

Note: Foreign citizens who need a visa to enter Portugal and residence permit to reside there must carry out such proceedings previously.

Foreigners who decide to live in Portugal can apply for the Non-Habitual Resident Status (NHR), both for work reasons and for retirement purposes, and for Portuguese citizens wishing to return to Portugal after residing in another country in the last five years.

Advantages

For a period of ten consecutive years, holders of the Non-Habitual Resident Status (NHR) are entitled to:

Taxation at the rate of 10% of income obtained abroad from pensions (category H);
Exemption on income obtained abroad resulting from dependent work, self-employment, capital, real estate income and real estate surplus, intellectual or industrial property; and
Taxation of income obtained in Portugal at reduced rates in case of activities with high added value (e.g. 20% for dependent work and self-employment income and 28% for capital and real estate income).

The professions considered having high added value are:

Market-oriented, skilled farmers and workers in agriculture and animal production, as well as in forestry, fishing and hunting;
Architects, engineers and similar technicians;
Painters, actors and musicians;
Auditors;
Authors, journalists and linguists;
General managers and executive managers of companies;
Directors of administrative and commercial services;
Production and specialised service managers;
Directors of hotels, restaurants, commerce and other services;
Specialists in physical sciences, mathematics, engineering and related techniques;
Experts in Information and Communication Technologies;
Physicians (medical doctors) and dentists;
Plant and machinery operators and assembly workers, in particular fixed plant and machinery operators;
Teachers of univesities and higher education;
Psychologists;
Liberal professions, technicians and similar;
Skilled workers in industry, construction and craftsmen;
Investors, directors and managers.

It is possible to simultaneously benefit from the Golden Visa/ARI and the Non-Habitual Resident Status (NHR);

Note: In cases where citizens have not exercised their right to be taxed under the NHR status in one or more years of said ten-year period, they may resume the same right in any of the remaining years of that period, provided they are again considered residents in Portugal.

Associated Areas

We provide guidance or counselling on other subjects that may also be of our clients’ need or interest, namely: Portuguese nationality/citizenship, visas and residence permits, bank financing, real estate acquisition, real estate monetisation and management , investment and company incorporation, inheritances, social security and others.

We know and recommend professionals from other related areas and of the clients’ interest such as real estate agents, architecture and/or engineering firms, real estate management companies, market studies, accounting and taxation, financing and community funds, marketing and others.