❝At AFM we have an experienced team dedicated to guide you through the NHR application, from start to finish.❞

What is Portugal NHR tax regime?

This scheme was designed to attract foreigners to invest in Portugal. Introduced in 2009 the “Non Habitual Residency” tax regime which is commonly referred to as NHR, become very successful after 2013 and has attracted many people to retire or work in Portugal. This tax regime offers several tax exemptions on income from foreign source and special tax rates for income from selected occupations.

Who can apply for the NHR?

Anyone that has a residency permit to live in Portugal and has not been tax resident in Portugal in the previous 5 years.

Does the NHR require any property investment in Portugal?

It’s not necessary to invest in property, but you are obliged to have a residency permit, which requires that you live in the country, either in a rented property or in a purchased one.

What is the minimum time I am required to be in Portugal, to become an NHR?

There is no minimum stay requirements once you are granted the NHR status, however please be aware that spending time in another country may trigger tax residency tests in such country. Also, when you renew your Portuguese VISA, you may need to justify your absence of Portugal to SEF.

How do I submit my application for the NHR in Portugal?

The first step is to obtain your NIF (Portuguese tax id number) as this will be required to rent ot buy a property. Only after you get your residency permit, you will be able to obtain the Portuguese tax residency and submit your NHR application.

What are the time frames to become an NHR in Portugal?

The whole process can take up to 3 weeks if you are a EU citizen and own or rent a property in Portugal. If however you are non EU citizen, you should expect an average of 6 months or more to get the necessary residency permit.

Are there any important deadlines to submit the NHR application?

To register for the NHR regime in Portugal, applicants must be registered as a Portuguese resident and the NHR application must be submitted before 31st of March of the year following your residency. If you became tax resident after 1st of January this year, then you have until 31st of March of next year to apply. If however you are already tax resident since last year you must apply before 31st of March this year.

I missed the deadline to apply for the NHR, what can I do?

Speak with our team and we may be able to assist you in changing your residency retrospectively, so that you can apply for the NHR again. Please note that you will be required to obtain tax residency certificates from the country from where you departed.

What documentation is required to obtain residency?

If you decide to rent a property, you will need to make sure that the contract is duly registered at the tax office and paid the stamp duty. If you have bought a property, you can show the copy of the purchase deed instead. Please note that non-EU citizens may also need to have a Portuguese bank account and in certain cases health insurance.

Is all the income from foreign source exempt under the NHR regime?

Beneficiaries of the NHR regime in Portugal with a foreign income are in most cases exempt from taxation in Portugal due to DTAs in place. But please contact us in order to verify if all your income fit into this, to avoid surprises.

Is there inheritance tax in Portugal?

There is no inheritance tax in Portugal, but there is a stamp duty which is exempt for Spouses, direct descendants, and ascendants. For everyone else, the stamp duty on inherited Portuguese assets is 10%.

Is there a gift tax in Portugal?

There is no gift tax in Portugal, but only stamp duty. The principle is the same as the inheritance tax, spouses, direct descendants, and ascendants are exempt from gift tax in Portugal. There is a 10% stamp duty on Portuguese assets for all others, and an additional rate of 0.8% on real estate (for everyone).

How much is the wealth tax in Portugal?

There is no wealth tax in Portugal.

I don’t have any income, can I still apply for the NHR?

Providing you haven’t been tax resident in Portugal in the last 5 years, you can become NHR. Please note that although currently you may not have any tax benefit, you may have income in the future that will benefit from your NHR status.