Portugal Non Habitual Resident Regime

One of the most famous citizenship by investment programs in Europe is the Golden Visa Program offered in Portugal. Hundreds of thousands of foreigners have received a second passport from Portugal this way and I suspect the numbers will only continue to grow in the upcoming years.

Now there is even a way in which you can combine your newly obtained residency with an incredible tax structure that you can only receive in Portugal. I am talking about the Non habitual resident tax regime.

As a foreigner who received a residency or a second passport from Portugal you only have to pay taxes if you move your business into the country or if you are directly making a profit from an enterprise you hold inside the country.

Portugal does not have double taxation, but there are a couple of taxes that do apply to you if you become a resident or citizen of Portugal. You have the opportunity to take advantage of an advantageous tax structure if you follow certain guidelines.

The first thing you have to do is become a tax resident of Portugal. After you officially become a tax resident the next step is applying as a Non Habitual Resident which is your best option for the first ten years of your Portuguese residency.

This is a fantastic option if you want to stop paying large sums of taxes and live in a foreign country. Portugal has both one of the most relaxed immigration and tax systems in Europe and a marriage between the Golden Visa Program and the Non Habitual Residency combines two incredible programs for Foreign Investors.

In some cases you can become fully exempt from paying any kind of taxes while still being a resident of Portugal. It is important to note that these cases only apply to official residents who have been approved by the local government.

You might be exempt from being taxed in Portugal via the Golden Visa Program and the Non Habitual Tax Residency if you are part of the following;

Receive monthly income from your country of origin such as a Pension or money from
outside businesses, this is the best option for retirees

Private investor using his own income, not from a corporation, to invest in Portugal

Foreign individual receiving money from privately owned rent from real estate outside of

Foreing individual who has become a Portuguese resident and is working outside of
Portugal, must not have any kind of sourced income in the country

The amount of money that the program can save you depends on your position within the country and the flow of your finances, but I highly recommend you move your business into Portugal as soon as you become a resident to take advantage of everything Portugal and Europe has to offer.

There are some strong rumors that Portugal’s Golden Visa Program will make some amendments in the upcoming years so I recommend that you start the process as soon as possible.