How can British investors benefit from the Non-Habitual Resident (NHR) tax regime in Portugal?

Answers

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  Nuno Albuquerque

  N-Advogados

  March 02, 2021

  British investors can benefit from the non-habitual resident (NHR) tax regime if they have not been a resident in Portugal for the last 5 years. To benefit from the regime, one must register as a tax resident; They should have been in the country for more than 183 days in total by Dec. 31 of the year they apply as well as a property intended to be kept and occupied as the applicant's residence. If the Golden Visa investment you’re planning to do is real state you’ll surely fulfill such requirements. The competitive advantages of the regime are: Taxation, over a period of 10 years, at a fixed rate IRS of 20% , in certain circumstances, on labor income earned in Portugal; Also, no double taxation on pension incomes or for employment and self-employment incomes obtained abroad.

• 

  Tiago Gali Macedo

  NEXT/Gali Macedo & Associados

  March 03, 2021

  Anyone can apply for the Non-Habitual Resident (NHR) tax regime in Portugal, provided they meet the criteria. The first step is applying for the Portuguese tax ID, commonly referred to as NIF, which will identify you before the Portuguese tax authorities. The criteria to be fulfilled in order to benefit from the NHR is to, firstly, become a tax resident in Portugal. This can be achieved by either spending more than 183 days in Portugal (doesn’t matter if all together or separated), or, if less time is spent in Portugal, having a permanent real estate intended to be used as your primary or either secondary residence address. Secondly, one may have not been a tax resident in Portugal during the five years prior to their application for the NHR. When you meet the criteria, your application for the NHR (provided it is executed until March 31 of the following year of the one when you first became a tax resident in Portugal), will be accepted and you will be able to benefit from this tax regime. Also, please bear in mind that residency and tax residency are two different applications, before two different authorities, and can be executed independently. Therefore, as one is not conditioned to the other, you can become a resident in Portugal via the Golden Visa Program (in which, by default, it is mandatory to apply for a NIF) and not become a tax resident, and vice versa.