SCOPE

Based on an advantageous tax regime, under IRS, the intention is to attract, to Portugal, non-resident citizens, professionals with high added value activities, as well as individuals with a high wealth or purchasing power;

This attraction is based on the application of the exemption method as a privileged method of eliminating international legal double taxation of income from external sources and on the application of a special rate of 20% (mitigated and proportional taxation) to certain income.

 

CONCEPT

In order to qualify as a non-habitual tax resident, it is necessary to:

a) Being a tax resident in Portugal:

He is a tax resident in Portugal, among others, who remains in Portuguese territory, in a given year, more than 183 days (consecutive or interpolated) or, who, having spent less time, has a home there, on December 31 of that year. conditions that suggest the intention of maintaining and occupying it as a habitual residence.

b) Not having been classified as a tax resident in Portugal in the last 5 years prior to the application of the regime:

The interested party will only have to declare that, in the previous five years, the conditions required to become a resident in Portuguese territory have not been met. This regime also applies to emigrants who want to return to Portugal.

The taxable person who is considered a non-habitual resident acquires the right to be taxed as such for a period of 10 consecutive years starting from the year, inclusive, of his registration as a resident in Portuguese territory, having to fulfill the requirement of permanence every year.

The interested party must request, from the Taxpayer and Customs Authority Register of Taxpayers, the adherence to the Non-Habitual Residents regime when registering as a resident in Portugal or, later, until March 31, inclusive, of the year following that in which to become resident in this territory.

 

RECIPIENTS

Non-residents in Portugal who are willing to establish a permanent domicile in Portugal or who want to return after a minimum period of absence of 5 years (eg independent professionals, retired people and pensioners, dependent workers). Or even, non-residents wishing to establish themselves as temporary residents as a result of secondment relationships (eg independent professionals, dependent workers, members of statutory bodies).

 

 

 

TAX REGIME APPLICABLE TO INCOME

Income from Portuguese sources:

Optionally, income from categories A and B may not be included when they result from activities with high added value, such as architects and engineers, plastic artists, actors and musicians, auditors and tax consultants, doctors and dentists, teachers university students, investors, investors, administrators and managers, senior staff, as specified in Ordinance 12/2010, of 7 January.

 

 

 

Foreign source income:

Income from foreign sources - dependent work - is exempt from taxation in Portugal, provided that they have been effectively taxed in the State of source and provided that they are not considered to be obtained in Portuguese territory.
Income from foreign sources - pensions - are exempt from taxation in Portugal, as long as they have been effectively taxed in the State of source or are not considered to be obtained in Portuguese territory.

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OTHER REQUIREMENTS

• Obtain the Portuguese Tax Identification Number, from the Tax and Customs Authority;
• Proceed to open a bank account in Portugal
• With regard to the requirement to register with Social Security, it is important to note that it is only mandatory if the non-habitual resident earns category A or B income in Portugal.

In this sense, if they are not registered with Social Security, non-habitual residents must have health insurance valid in national territory, which guarantees protection in health and in accidents or, alternatively, have the European health card. , for European citizens, in order to be properly protected in the event of illness or accident, in national territory.

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