Non-Habitual Resident (NHR) Regime
The Portuguese special personal income tax regime, the NHR Regime, is specifically designed for individuals wishing to transfer their residency to Portugal.
Provided that all requirements are fulfilled the main characteristics of the regime are:
- Foreign sourced income such as dividends, interest, capital gains (duly structured), rental income, occupational pensions, together with self-employment income and professional income can be exempt from personal income tax;
- Portuguese sourced employment and self-employment income are liable to a special flat rate of 20%.
If you have not been a resident, for tax purposes, in the previous five years prior to taking up residence in Portugal you are able to benefit from the potential advantages of the NHR Regime.
Please notice that the NHR is not a remittance scheme, as foreseen in the United Kingdom and Sweden’s taxation system, it consists in effective benefits for inbound individuals qualifying as residents, for tax purposes, in Portugal (regardless of their nationality).
MCS can guide and assist you throughout the entire NHR process. It is crucial to ensure proper compliance with the applicable formalities in the year of relocation and in the subsequent years of residence in Portugal in order to fully benefit from the potential advantages of the NHR regime.
We invite you to download and read our brochure on the NHR Regime, available in our Info Center, for more information or to directly contact us.