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Special Tax Regime for
Non-Habitual Residents

The NHR regime is aimed at:

  • Skilled professionals in high added value activities, of scientific, artistic or technical nature;

  • Entrepreneurs and investors (know-how, intellectual and industrial property);

  • Retired individuals, beneficiaries of foreign source pension schemes.

These will be tax exempt regarding most foreign income, while benefiting from a reduced taxation on some Portuguese source income, provided some conditions are met.


The NHR tax regime is available to applicants that meet all of the following conditions:

  • Are entitled to Portuguese residency;

  • Have not been taxed as Portuguese residents in the 5 years prior to obtaining Portuguese residence;

  • Apply for Portuguese tax residency.

The NHR status, for tax purposes, applies for a consecutive 10-year period, provided that the conditions for maintaining Portuguese tax residency are fulfilled during each year of that period.


Portugal applies the Personal Income Tax (PIT) according to the following table:


Included in the classification of high added value activities, of scientific, artistic or technical nature are for example: architects, engineers, medical doctors, university professors, designers, IT specialists, plastic artists, musicians, actors, investors, corporate managers and directors, and others.

Investors will only have a privileged treatment of their Portuguese source income, regarding their earnings as directors / upper management.


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All Portuguese source income that does not fall under the conditions for the application of the reduced flat rate, as well as not exempt foreign source income, will be taxed in Portugal according to the normal applicable progressive PIT (marginal) rates of up to 48%.


There are no wealth taxes. Only property taxes apply at the municipal level, which are based on the registered value of the real estate, with rates varying between 0.3 and 0.45%. An additional tax will be levied on the registration value of the properties in the name of the owner, exceeding the amount of 600 thousand euros (1.2 million for couples who opt for joint taxation).

No inheritance tax applies, when heirs are spouses, descendants or ascendants. In other cases, Stamp Duty is levied at a 10% rate on Portuguese assets. An additional 0,8% Stamp Duty rate is applicable to real-estate located in Portugal, to which even the mentioned exempt heirs are subject. The same principles apply to gifts.

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