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Non-Habitual Tax regime in Portugal

pension tax free

The Non-Habitual Tax regime in Portugal

Background:

The Non-Habitual Tax regime in Portugal allows anyone who becomes a tax resident in Portugal (subject to being accepted by NHR) the ability to receive qualifying income, tax-free in Portugal and the country of the source of income. The regime was introduced in 2009.

The only requirement to gain access to this preferential treatment is;

  • to become a Portuguese tax resident (having not been tax resident in Portugal during the last 5 years.

The status is then granted for 10 years.

What income is eligible under Non-Habitual Tax (NHR) status?

  • Pensions
  • Dividends

Non-Portuguese sourced income is exempt from personal income tax.

Who is eligible for the Non-Habitual Tax regime in Portugal?

Any individual who becomes Portuguese tax resident by one of the following is eligible for the Non-habitual Tax regime in Portugal;

  • Has their habitual residence in Portugal
  • Spends more than 183 days in Portugal during the tax year

Non-Habitual Tax

What are the key benefits of the Non-Habitual Tax regime in Portugal?

All NHR’s are exempt from personal income tax on qualifying income (as mentioned above) when the double tax treaty stands with the home country.

In essence, for many of our clients, this means receiving your gross pension income when in drawdown saving up to 40% in tax.

How can Harrison Brook help?

Harrison Brook is the leading international online broker of expatriate financial services, products, and expat financial advice. We assist clients in Portugal and throughout Europe.

in managing their pensions and investments to maximum effect and meet the specific requirements at hand.

Why choose Harrison Brook?

  • Honest, impartial advice – Globally fully regulated through the Financial Services Commision in Gibraltar meaning you can rely on and trust Harrison Brook as your financial partner.
  • Quality Financial Products – we offer quality expat financial products and services globally from the world largest and leading banking institutions and funds houses, all fully FCA regulated.
  • Transparent – initial consultants are free and without obligation and ALL product fees are visible. Working from a fee-based model unlike the majority of expatriate financial adviser using commission with opaque charging structures and exit penalties for accessing your money
  • Proven Performance – many of our clients have been with us for several years and recommend us to their friends and family. With a 5 star rating from the fully independent website Feefo
  • Reach – there are no restrictions on clients location and you can continue to access and use our services no matter where you live in the world
  • Value – our online advice system reduces our costs and fees allowing us to pass this saving on to you.
  • Independent – we are not tied to any provider or product meaning we offer the full breadth of market products and services with no product provider bias.

Take the first step

To get discuss your requirements and find out what options are available to you speak to an International regulated adviser. Get Started Now! 

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