What is NHR / Non Habitual Residency? How to become a Non Habitual Resident in Portugal
The Non habitual Residency (referred to frequently as the NHR) is a Portuguese tax status. It was introduced in 2009 to attract individuals and their families to Portugal. It enables the individual becoming a tax resident in Portugal to get great tax advantages. The tax advantages are granted case by case, for a period of 10 years.
Income Tax Benefits for Non Habitual Residents in Portugal
The Non Habitual Residency has two tax benefits, either you may be:
- Tax exempt
Any individual that receives a qualifying non-resident income (such as a pension, dividend, royalty and interest income) can apply for a tax free NHR status.
Or you may have a:
- Flat tax rate of 20%
Professional individuals from high value-added activities, of which a list is enclosed to the applicable regulation, are eligible to apply for a flat tax rate of 20%, when practicing this activity in Portugal.
How to apply for Non Habitual Residency in Portugal?
When you are buying a property in Portugal, the lawyer that you use for the property purchase, can also do the NHR application for you. Check the table below to see if you might be eligible for the NHR status: