The Non-Habitual Residency (NHR) status in Portugal provides attractive tax incentives for those who become tax residents and meet specific eligibility criteria. Under the revised NHR 2.0 program, professionals in high-value sectors can access significant tax advantages, making Portugal a prime destination for expatriates, entrepreneurs, and skilled professionals.

What is NHR 2.0?
Launched to attract talent and investment, Portugal's updated NHR 2.0 program offers a 20% flat tax rate on eligible Portuguese-sourced income and exemptions on most foreign-sourced income for a 10-year period. New criteria and specific sectors now align the program with Portugal’s economic and regional development goals.

Key Benefits of NHR 2.0:

• 20% Flat Tax Rate: Applies to Portuguese income from specified high-value professions.
• Tax Exemptions: On most foreign income such as dividends, interest, capital gains, and rental income, subject to Portugal's tax agreements with other countries.
• Regional Incentives: New incentives aim to attract residents to Madeira and the Azores.
• No Wealth or Inheritance Tax: For close relatives, an appealing feature for family planning.
• Family Eligibility: NHR status can extend to family members, enhancing its benefits.

Eligibility and Requirements
To qualify for NHR 2.0:

• Residency: Maintain permanent residence in Portugal for over 183 days annually or establish your main home in the country.
• No Prior Residency: You must not have been taxed as a Portuguese resident in the five years preceding the application.
• Profession-Specific Requirements: NHR 2.0 primarily targets those in sectors like higher education, scientific research, and tech innovation centers.

Navigating the NHR process can maximize potential savings on foreign and Portuguese-sourced income. ORM’s tax experts can offer personalized advice to help you leverage Portugal’s tax treaties and optimize your financial planning.

Ready to Explore Your Options?
ORM’s tax experts are here to help you navigate the NHR process and maximize the financial benefits. Contact us today to learn how NHR 2.0 could enhance your life in Portugal.