As you may have heard, the Portuguese government has submitted a proposal to end new NHR registrations by the end of 2023. While the proposal has not been finalized, we know that many of our customers can benefit from NHR so we’d like to share what we know so far.
NHR stands for Portugal’s “Non-Habitual Resident” tax regime which was introduced in 2009 as a way to attract foreign residents to live in Portugal. NHR offers generous tax benefits to retirees, investors, and highly-skilled professionals through flat tax rates and tax exemptions. Learn more about NHR in our blog post – Making Sense of Portugal's NHR Tax Regime.
On October 2, 2023, Portugal’s prime minister surprised many people by announcing that NHR would be removed in 2024 (see interview). The following Tuesday, the Portuguese government released their initial draft of the proposal, citing an end to new NHR registrations by the end of 2023. While the proposal has not been finalized, many people are wondering if they can still register for NHR by the end of 2023.
If you live in Portugal and have already updated your NIF with your Portuguese address, then you can apply for NHR immediately. See our guide - How to apply for Portugal’s NHR Tax Regime on Portal das Finanças.
If you have not updated your NIF to a Portuguese address, the most challenging step of the process is updating your NIF with a Portuguese address. This process can vary depending on your country of citizenship. EU citizens have an easier time becoming Portuguese tax residents over non-EU citizens since they do not need a visa to legally reside in Portugal.
You may be able to register for NHR before the end of 2023 if you are able to complete all the steps below.
We do not offer any services to help you expedite your NHR registration at this time.
If you're looking for personalized advice on how you would be impacted by NHR, you can sign up for an NHR Tax Consultation.