Non-habitual resident
Non-habitual resident
The advantage of living in Portugal
NHR
NHR
Buying property remotely in Portugal is simple and safe, as long as you have qualified professionals.
Non-Habitual Resident Regime (RNH) in Portugal: How It Works
Non-Habitual Resident Regime (RNH) in Portugal: How It Works
RNH Tax Benefits
RNH Tax Benefits
Exemption from IRS (Personal Income Tax) on income obtained outside Portugal, such as pensions, dividends, interest and income from dependent or independent work, as long as they are taxed in the country of origin in accordance with double taxation conventions or , if there is no convention, that they are taxed abroad.
Flat rate of 20% IRS on income from work in Portugal, applicable to professionals in high value-added activities, such as engineers, doctors, architects, directors and other qualified professions.
For retirees, there is the possibility of tax exemption on pensions obtained outside Portugal, depending on the country of origin and applicable tax conventions.
Who Can Benefit from RNH?
Who Can Benefit from RNH?
The scheme is open to citizens of any country, including those in the European Union and outside it. Among the most common beneficiary profiles are:
Qualified professionals in areas of high added value, such as technology, science, engineering, arts and medicine.
Retirees who receive pensions from other countries and wish to take up residence in Portugal.
Entrepreneurs and investors who want to explore tax and business opportunities in the country.
Procedures for Adhering to the RNH Regime
Procedures for Adhering to the RNH Regime
To access the RNH, you need to follow a few steps:
1. Obtain the Tax Identification Number (TIN) – This number is essential for any financial or tax interaction in Portugal.
2. Register as a tax resident with Finance.
3. Submit the RNH request to the Portuguese Tax Authority by March 31st of the year following the year in which you became a resident in Portugal.
4. Maintain tax residence in Portugal for at least 10 years to continue to enjoy the benefits of the regime.
Conclusion
Conclusion
The Non-Habitual Resident Regime has transformed Portugal into one of the most attractive destinations in Europe for expatriates, qualified professionals and retirees seeking tax benefits. With a stable economy, high quality of life and a favorable climate, the RNH provides a unique opportunity for those who want to take advantage of everything that Portugal has to offer, at the same time as benefiting from an advantageous tax regime.
If you are considering moving to Portugal, this could be the right time to explore the tax advantages of the RNH.
