How to Become an NHR in Portugal in 2023

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Over 50,000 foreigners have signed up to the Portuguese NHR programme since 2009. Becoming a NHR in Portugal offers many benefits. This guide will show you how to reduce your tax liability via this European tax residency.

What is a NHR?

NHR  stands for Non-Habitual Resident. It is a form of tax status that Portugal provides to select individuals. NHR is a way of making the country more appealing for foreign investment.

Who is eligible to become a NHR?

You qualify to become a Non-Habitual Resident if you are over 18 years of age and:

1. Have lived in Portugal for more than 183 days in the last 12 months or have purchased a property with the intention of it becoming a habitual residence
2. Have not resided in Portugal in any of the preceding five years
3. Are a crew member of aircraft of ship starting from December 31 of the year prior to your application
4. Work for the Portuguese State

Four reasons to become a NHR in Portugal

1. You pay a flat 10% on pension income
2. You are liable for a fixed 20% income tax as a highly-valued professional
3. Most of your foreign source income is tax exempt
4. The status is valid for 10 years

What counts as a highly-valued professional

Portugal wants to reward relocating talent with preferential tax rates. They are interested in certain types of individuals moving to the country. These include but are not limited to the following:

• Agricultural specialists
• Board members and directors
• Doctors
• Engineers
• Journalists
• Programmers
• System analysts

When should you apply to register as a NHR?

You can only qualify as a NHR if you have a Portuguese tax identification number, either a NIF or TIN.

If you are a Portuguese non-resident, you will have to notify the authorities of your change in address and status by:

1. Accessing the Portal das Finanças
2. Visiting a tax office or Loja do Cidadão

The deadline for you to obtain NHR status is up to and including March 31 of the year following the year in which you become Portuguese resident.

How to get NHR status from the Tax and Customs Authority

You can make an online request via the Portal das Finanças. Complete the application form with the required details. You will have to inform Portuguese authorities which country you lived in the previous year before your application.

Where we can help you become a Non-Habitual Resident in Portugal

RIF Trust is a leading authority on Residency and Citizenship-by-Investment programmes worldwide. We have helped over 5,000 individuals and families achieve their investment migration goals. You could be next.

As we explained, you will need to be considered a Portuguese resident before becoming a NHR in Portugal. One way of doing this is through a Golden Visa and we can assist you with your application.

The Portugal Golden Visa currently requires a minimum investment of Є250,000. However, there are potential changes that will limit the options available to investors. So, to avoid missing out on visa-free access to the EU Schengen Zone and other benefits including a route to citizenship, act now.

So, don’t delay, contact us today.