Non-Habitual Resident Status

Anyone who has not been resident in Portugal for the previous five years can register for Non-Habitual Resident Status, allowing you to receive most types of foreign income tax-free for 10 years, with foreign pensions taxed at a flat rate of 10%.

Once an individual has authorization to reside in Portugal, the process of applying for NHR status is relatively simple. A qualifying individual must not have been resident in Portugal in any of the previous five years and must have a tax ID number in order to apply.

The applicant must go to the local tax office (finanças) and make a written statement that they meet all the criteria of eligibility, and then present a tax identification number, show their passport, indicate the residential address in Portugal (which may be a rented property), and show the residence permit.

Applying for the NHR regime requires qualifying as a tax resident in Portugal, either by staying more than 183 days in a 12-month period, or having a permanent dwelling in Portugal. All applications must be received no later than March 31st of the year following the one in which the applicant wishes to declare themselves resident under the NHR law.