Government prepares changes to non-habitual resident regime
The Portuguese government is finalizing changes to the NHR regime, which seeks to attract foreign skilled retired workers to Portugal by offering them generous discounts on the IRS.
At the moment, the changes that will be made to the NHR are in the list of professions that are subject to tax benefits. The goal is to attract qualified professionals who bring added value to the Portuguese economy and try to respond to the shortage of labor in specific segments. The professions that will be added are:
- Directors of hotel, restaurant, trade and other services;
- Farmers and skilled agricultural and livestock workers;
- Skilled forest workers, fishing and hunting;
- Skilled workers in industry, construction and craftsmen;
- Plant and machine operators and assembly workers;
- Operational technicians and controllers of maritime and air transport.
The professions that will be excluded are:
- Architects;
- Auditors;
- Tax consultants;
- Psychologists;
- Archaeologists.
Minimum qualifications are still required from applicants: at least upper secondary education (European Qualifications Framework qualification level 4) or five years of duly proven professional experience.
These changes will not take effect until January 2020. The tax benefit is now automatically granted and is to be reviewed every three years.
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