With the implementation of the 2024 State Budget, the government has repealed the NHR regime that previously offered numerous tax advantages, including exemptions on various income types like pensions and dividends. Nonetheless, it remains feasible to apply for NHR status in 2024, provided that you establish tax residency in Portugal during that year and satisfy specific conditions.
In accordance with the current State Budget for 2024, despite the Non-Habitual Resident (NHR) Regime having been revoked and only remaining in effect until the end of 2023, the Government has approved a transitional regime that allows individuals to apply for the NHR Status in 2024, provided that they become tax residents in Portugal during the course of that year.
Individuals applying for the Non-Habitual Resident (NHR) Status under this transitional regime may still avail themselves of the previous regime’s various tax exemptions and reductions if any of the following conditions are met:
- Having a job offer or an employment contract, secondment agreement, or similar document signed by December 31, 2023, for positions to be carried out in Portuguese territory.
- Entering into a lease agreement or another contract that grants them the use or possession of a property in Portuguese territory by October 10, 2023.
- Having a reservation contract or a promise of acquisition of real estate in Portuguese territory, entered into by October 10, 2023.
- Enrolling or registering dependents in an educational institution located in Portuguese territory by October 10, 2023.
- Holding a residence visa or residence permit valid until December 31, 2023.
- Initiating the necessary procedures for obtaining a residence visa or residence permit by December 31, 2023, including scheduling an interview or submitting an application to the relevant authorities.
These updated eligibility criteria apply not only to individuals but also to members of the household.
Tax Department
Sofia Quental | Inês Grácio | Flávia Almeida | Catarina Amaral
