Non Habitual Resident Status keeps growing

In the last two years, 14,344 people have joined the status of Non-Habitual Resident (RNH) in Portugal, with this programme now having 45,262 beneficiaries.
The status, created in 2009, allows an exemption from taxation of income obtained outside Portugal for a period of 10 years. However, from the 2020 State Budget it was defined that retirees residing in Portugal and enjoying the status of RNH, with pensions paid by a foreign country, will pay 10% on this income (instead of the previous exemption). This change should not alter the degree of attractiveness of this statute, since many of its holders come from countries with tax burdens much higher than Portugal.
It should be noted, however, that retired people who, at the time of the entry into force of the new State Budget, already enjoyed the status of Non-Habitual Resident (RNH), may maintain the exemption, unless they opt for taxation at 10% of their income: this option may be important, due to conventions to avoid double taxation.
Another major change in this special regime concerns the list of added value activities, which currently includes farmers and intermediate level professions, linked to science and engineering.
With this measure, Portugal attracts highly qualified people specialised in high value-added activities, with the capacity to invest and boost the national economy.