Non-habitual resident status in Portugal comes to an end
We hereby inform you that yesterday, 3 October 2023, the Portuguese Prime Minister, Antonio Costa, announced the end of the non-habitual resident status in Portugal on 31 December 2023, which means that it will no longer be possible to apply for this regime as from 1 January 2024.
In short, individuals who are interested in benefiting from this status will be able to do so until 31 December 2023, meaning that if accepted, they will be able to benefit from this regime for a period of 10 years.
The Non-Habitual Residents regime is a status that came into force in 2009 and aims to attract to Portugal non-resident professionals qualified in activities of high added value, intellectual property, industrial property or know-how, as well as beneficiaries of pensions obtained abroad.
This regime has several benefits, such as taxation at a rate of 20% for high value-added professions for dependent and self-employed workers, as well as the possibility of exemption for capital income, property income or capital gains, depending on the state of origin of the income, and also for withdrawing pension funds which would be taxed at 10%, or exemption from taxation if the pensions are taxed in the state of origin.
This status is available to anyone who has not been considered resident in Portuguese territory in any of the previous five years, in relation to the year in which he/she wishes to be taxed as a non-habitual resident, and to anyone who is considered resident in Portuguese territory in the year in which he/she wishes to be taxed as a non-habitual resident.
In view of the above, the Tax Law Department of Belzuz Abogados is fully prepared to support and advise any person wishing to change their tax residence to Portugal and apply for Non-Habitual Resident status.
Tax and Legal Department | Madrid (Spain)
Belzuz Advogados SLP
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