Portugal Non-Habitual Resident Tax Regime

Where Europe, the Americas, and the Atlantic Meet

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Itroduction of NHR

The Non-Habitual Residence (NHR) regime offers qualified individuals the opportunity to become tax resident of a white list jurisdiction, legally avoiding or minimizing income tax on certain categories of income, including, capital gains for 10 years.

In Portugal in 2009, the NHR tax regime came into force, successfully attracting self-employed individuals, pensioners and qualified professionals to reside in Portugal for tax purposes, while not being subject to minimum or maximum stay requirements.

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Documents requiered For NHR

NHR allow you to stay in Portugal?

It does not. The NHR isn’t a visa. It is a tax regime that might reduce your tax liability, and on some occasions secure tax exemption depending on the sources of income and the country of source.
In due to be illegible for the NHR, the applicant must have a valid residence permit in Portugal.

NHR tax regime grant me an automatic exemption on all foreigner sources of income?

The NHR regime will not provide you with an automatic exemption on all foreign sources of income. The possible benefits and exemptions are assessed particularly, taking into account each source of income and its country of origin to assess as precisely as possible the means by which the income will be taxed in Portugal under NHR.

Do I need to stay and live in Portugal to benefit over the NHR?

Although NHR means non-resident, it does not imply that you are not registered as a Portuguese taxpayer. NHR is available to tax residents who have not been in the country for the previous 5 years. As a tax resident you must stay in Portugal for at least 183 consecutive or interspersed days within a 12 month period.

Is it expected updates on the NHR in the next few years?

The NHR is a fairly stable and resilient regime, having undergone only one major change. This change concerns the year 2020, when the Portuguese government decreed to change the tax rate on pension income in some cases from 0% to 10% in order to align with international taxation standards.

Will the NHR cover all my family or only me as the applicant?

It will only affect the tax status of the individual that enrolls in this regime.

Extra Requirements

To be eligible as a “non-regular resident”, you must register as a tax resident of Portugal after not having been resident in this country for at least the previous 5 years. Under the terms of the law, a non-registered individual will be considered resident for tax purposes if they spend more than 183 days in the country during a 12 month period, or if they enjoy a place of residence in the country. However, there is no minimum stay requirement for a registered tax resident in Portugal.

Except EU, EEA and Swiss citizens have an automatic right to live in Portugal and a legal obligation to register accordingly, and individuals of other nationalities must obtain a residence permit.

The recognition of the non-habitual resident status is granted for a period of 10 years, upon request to the Portuguese tax authorities until 31 March of the year following the year in which the Portuguese residence was accepted. Only after successful admission of the application you are recognised in this status.

Therefore, you must request an application and a declaration that the applicant was not resident for tax purposes in Portugal during the 5 years preceding his/her arrival in Portugal. Only if the tax authorities have doubts as to the veracity of what is declared will they request additional documentation to include a tax residence certificate from the previous country and/or a document proving that the applicant’s vital and economic interests were focused on another country during the previous 5 years.

Evaluation and quantification of options

Attractive Business Environment

The Azores offer one of the lowest VAT rates in Europe and some of the most competitive incentive packages within the European Union.

Favorable Tax Regime

One of the lowest VAT rates in Europe and exceptional EU incentives.

High-Growth Sectors

Aerospace, aeronautics, organic agriculture, biotechnology, and renewable energy.

Leader in Sustainability

National leader in geothermal energy and renewable-based energy production.

ESTIMATED FLIGHT TIME TO THE AZORES:

Lisbon: 2 hours

Madrid: 3 hours

Paris: 4 hours

London: 4 hours

(USA) East Coast 4 hours

Canada: 5 hours

Strategic, Analytical & Project Services

Strategic & Analytical Services

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Business activity and market analysis
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Macro-economic and competitive landscape evaluations
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Project Development & Management

Full project coordination and management
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Research & Development (R&D) projects
Internationalization strategies
Consultancy for financial institutions

Funding & Incentive Applications

Preparation of applications for incentive programs
Submission of investment proposals to banking institutions

Good infrastructure and support networks.

The Azores represent the first point of entry into Europe, and their sea makes Portugal one of the countries with the largest maritime platform in the world.

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USA and EU

Strategic location in the middle of 2 continents: American and European.

Good infrastructure conditions

Development of increasingly emerging areas: Aerospace, Aeronautics, Organic Agriculture.

Attractive tax regime

The Azores have one of the lowest VAT rates in Europe and one of the most attractive incentive packages in the European Union.

Invest in the Future, Earn for a Lifetime

Discover the unmatched beauty and stability of real estate investment in the Azores. From oceanfront homes to mountain retreats, every property offers long-term growth, tax benefits, and a lifestyle unlike anywhere else in Europe.

Stable Market Growth

The Azores’ real estate market is steadily rising, fueled by tourism, sustainability, and limited land supply, making it a secure investment location.

High ROI Potential

With growing demand for rental and vacation properties, investors enjoy strong returns and consistent rental income year after year.

Residency Through Investment

Investing in Azores property can unlock Portuguese residency — giving you access to the EU lifestyle and global mobility benefits.