Portugal NHR Tax Regime 2024 Transitory Period
The Portuguese Parliament has approved the termination of the NHR tax regime. However, a transitory period has been introduced to ensure that applicants’ expectations are respected, especially since they have already taken steps that demonstrate their intention to relocate to Portugal.
Portugal NHR Tax Regime 2024 Transitory Period:
During this transitional period, it remains possible to apply for the NHR tax regime in 2024, subject to certain conditions:
a) For taxpayers who, on December 31, 2023, meet the conditions outlined in Article 16 of the IRS Code to qualify as a tax resident in the Portuguese territory;
b) For the taxpayers who become a tax resident by December 31, 2024, and declares, for the purpose of their registration as a non-regular resident, possession of one of the following elements:
i) A promise of employment, a work contract, or a secondment agreement concluded by December 31, 2023, with duties to be performed in the Portuguese territory; or,
ii) A lease agreement or another contract granting the use or possession of property in the Portuguese territory, concluded by October 10, 2023; or,
iii) A reservation agreement or a promise-to-buy contract for real property rights in the Portuguese territory, concluded by October 10, 2023; or,
iv) Enrollment or registration of dependents in an educational institution located in the Portuguese territory, completed by October 10, 2023; or,
v) A valid residence visa or residence permit until December 31, 2023; or,
vi) Process initiated by December 31, 2023, of the residence visa or residence permit application with the competent authorities, in accordance with the current immigration legislation, notably through the scheduling or actual appointment for a residence visa or residence permit application submission, or through the submission of the application for residence visa or residence permit.
c) The taxpayer who is a member of the household of taxpayers referred to in the previous paragraphs.
For the taxpayer who is already registered as a non-regular resident in the tax authority’s taxpayer registry, the NHR will apply until the 10-year period (from application) is complete.
To summarize, we would structure the available options as follows:
· For EU citizens it would be necessary to meet one of the conditions above listed as i), ii), iii), iv) or apply for a Residency Certificate as EU citizens in 2023.
· For non-EU citizens, it would be necessary to meet one of the conditions above listed as i), ii), iii), iv) or having a pending immigration process (with the Consulate or AIMA) or proving that an appointment has been made in 2023 (even if the appointment will only take place in 2024).
· Family members, if not meeting the conditions themselves, will also be protected if they are moving to Portugal with a family member covered by the above rules from i) to vi).
Check the NHR benefits here.
PDF: 2024 NHR TRANSITORY PERIOD
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