What Is Portugal’s NHR Scheme and How Can It Benefit You?
Portugal is attractive to prospective residents for a whole number of reasons. Aside from the obvious attractions such as the hot weather and beautiful scenery, there are also huge financial benefits for UK and European citizens intending to relocate to this wonderful country. One of the most beneficial schemes in place within Portugal is the Non Habitual Resident Tax Regime. This scheme was set up to attract part time and permanent residents to the country, so that the country could compete better internationally.
What is the NHR Scheme?
The NHR Regime is made available to individuals that newly become Portuguese residential tax payers (note they must note have been a resident tax payer in the last five years). The terms for being considered a resident of Portugal include: • ‘Living more than 183 (consecutive or not) days in Portugal in any period of 12 months starting or ending in the relevant year’ • ‘When herein living for an inferior period, having, in any day of the 12-month threshold, a house in such conditions that allow to presume the intention to hold and occupy it as his habitual place of residence’ • ‘Is a crew member of a ship or aircraft on December 31, provided he is in the service of entities with residence, headquarters or effective direction in Portugal’ • ‘Performs abroad functions or commissions of a public nature, at the service of the Portuguese State’. If the individual is eligible for the NHR scheme, they are required to apply for the registration as NHR until 31st of March of the following year of registering as a resident. The scheme is granted for 10 years as long as the individual remains a tax resident in Portugal.
What Does This Mean for New Residents in Portugal?
This scheme awards new Portuguese residents a 10-year tax amnesty, for those seeking to retire to Portugal, this would mean a tax free pension. Many expats are already taking advantage of this tax break in Portugal and you can do so to if you qualify as a new resident to the country. Speak to Buy Portugal About Other Financial Benefits to Choosing Portugal There are several financial benefits to residing in Portugal on a temporary or permanent basis, some of these include low mortgage rates for home owners, the country’s low cost of living and other tax benefits. If you are not sure whether you qualify for the NHR scheme or wish to discuss it further, you can speak to the team at Buy Portugal.
Contact us Today for Further Help and Advice
Contact Buy Portugal for further help and advice regarding taxation in Portugal and how you can give yourself the greatest financial start when migrating to Portugal. We have been helping residents of the UK buy and sell property in Portugal as well as settle in the country for over 12 years now and can help you too.
