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Tax & Money

NHR Tax Regime — Non-Habitual Resident Status

The NHR (Non-Habitual Resident) regime offers significant tax benefits for new tax residents in Portugal. While the original program was ended for new applicants in 2024, a modified version exists. If you were approved before the changes, you keep your benefits for the full 10-year period.

1

Check eligibility

You must not have been a Portuguese tax resident in the previous 5 years. You must become a Portuguese tax resident (183+ days or habitual abode in Portugal). New applicants fall under the revised 2024 rules which are more restrictive than the original NHR.

2

Become a tax resident first

Register your address at Financas and formally become a Portuguese tax resident. You cannot apply for NHR without first being registered as tax resident.

3

Apply by the deadline

Apply by March 31 of the year following the year you became tax resident. Example: if you became resident in 2025, apply by March 31, 2026. Apply through Portal das Financas under 'Entregar pedido de inscricao como residente nao habitual'.

Portal: https://www.portaldasfinancas.gov.pt
4

Understand the tax benefits

Original NHR (pre-2024): flat 20% on Portuguese-source employment/self-employment income from 'high value' activities. Foreign pensions taxed at 10%. Most foreign income exempt if taxed in source country. New rules: benefits vary by situation — consult a tax advisor for your specific case.

5

File correctly each year

NHR status doesn't change how you file — you still submit IRS normally. But you must correctly indicate your NHR status and fill Anexo L to claim the special rates. Foreign income goes in Anexo J as usual.

Watch out

  • Missing the March 31 deadline means losing the NHR benefit permanently — it cannot be applied retroactively
  • NHR does NOT mean you don't file taxes. You still file annually and declare worldwide income
  • The 2024 changes significantly altered the program. Information about 'old NHR' may not apply to new applicants
  • Some countries' tax treaties override NHR benefits — always check the specific treaty with your home country

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