The Non-Habitual Resident (NHR) Regime in Portugal was created in 2009, through the approval of the Investment Tax Code, with the aim of attracting qualified non-resident professionals to Portugal, as well as beneficiaries of pensions obtained abroad.

The Non-Habitual Resident Regime applies exclusively to individual taxpayers, particularly in the tax treatment of their income earned globally, meaning income earned and/or considered as earned in Portugal and income earned outside of Portugal. The application of this regime is restricted to the so-called Personal Income Tax (IRS).

The Non-Habitual Resident Regime does not imply that the taxpayer does not have the same reporting obligations as a resident taxpayer. Tax exemption for taxpayers applies in specific situations depending on the type and origin of income, and is only confirmable after the declaration is submitted.

The Non-Habitual Resident Regime, as approved, is repealed from January 1, 2024, with a transition period until the end of 2024, during which it may still be obtained under certain requirements. However, anyone who holds the Non-Habitual Resident Regime and has not completed the full 10-year period still enjoys its application until its expiration.

The exemption applies only to income earned outside of Portugal or considered as earned outside of Portugal. Not all income earned outside of Portugal is exempt from tax in Portugal when earned by a resident in Portugal.

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