The Portuguese Tax Authorities (PTA) has clarified that the deadline for registration in the Non-Habitual Residents (NHR) regime is set for March 31, 2025, for those who become tax residents by December 31, 2024.
Furthermore, the PTA has clarified that the approved transitional measure allows for the enrollment in the NHR regime, as previously established, until the end of the tenth consecutive year from the year of the individual’s registration.
To be yet eligible, applicants must become tax residents in Portugal by December 31, 2024, and meet a set of criteria, such as 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; having a promise or employment contract, or a promise or posting agreement signed by December 31, 2023, that will be carried out on Portuguese soil; having a lease agreement or another contract granting the use or possession of property in Portugal signed by October 10, 2023; having a reservation contract or promise of acquisition of real property rights in Portugal signed by October 10, 2023; and having completed the enrollment or registration of dependents in an educational institution located in Portugal by October 10, 2023.
Additionally, it is crucial to submit the application for NHR registration by March 31, 2024, for the year 2023, or by March 31, 2025, for the year 2024.
The NHR regime offers significant advantages, including a flat tax rate of 20% on income from dependent and independent work earned in Portugal, if derived from high-value-added activities, exemption from taxes on dividends, royalties, and interests earned outside Portugal, and a flat tax rate of 10% on foreign pensions.
Tax Department
Sofia Quental | Inês Grácio | Flávia Almeida | Catarina Amaral
