As per the 2024 Budget the NHR tax regime – Europe’s most successful tax regime in Europe for the last 10 years – was revoked from 1 January 2024 onwards, but with a special grandfathering regime, described below.
Applicants who become tax resident of Portugal until December 31st, 2024, may still register for NHR, provided the following occurs:
The applicant will need to either:
– Initiate the visa application process by December 31, 2023; or;
– Be a member of the household of a taxpayer covered by the transitory regime mentioned in a. above
– Have a promise of employment / employment contract, or a promise of secondment / secondment agreement to work in Portugal signed until December 31, 2023, whose duties must take place within national territory;
– Have signed a promissory purchase agreement or have leased a property in Portugal by October 10th, 2023;
– Have enrolled any children in a school in Portugal for the school year of 2024/25 by October 10th, 2023.
– NEW TAX INCENTIVE FOR SCIENTIC RESEARCH AND INNOVATION (TSRI) – This new tax regime will take effect from January 2024 for individuals who:
(i) have not been tax resident in Portugal for the last 5 years;
(ii) have acquired tax residency in Portugal;
(iii) obtain income from employment or self-employment within the scope of the new regime, encompassing roles like teaching in higher education, scientific research, positions in technology or startups (including board members), highly qualified professions in companies with significant investment applications and jobs in industry and service companies which turnover results, at least, in 50% from exports or yet another activities conducted by tax residents in the islands of Madeira or Azores (yet to be legislated by the Regions).
The benefits under this new tax regime include:
- A flat 20% tax rate applicable to income from employment and/or self-employment provided within the scope previously mentioned.
- Full exemption from taxation on foreign-sourced income, covering employment/self-employment income, dividends, interest, capital gains, and rents.
- These benefits will apply for a 10-year period.
We remain available for any clarification. Please contact us at info@horizonconsulting.pt