If you're looking to live, work, or both, in Portugal, the Non-Habitual Resident (NHR) tax system can provide significant tax benefits.
The NHR offers a Tax-Free solution for income from foreign sources (example: dividends and royalties), a flat rate of 10% on pensions, and a flat income tax rate of 20% for qualifying individuals regarding income generated in Portugal, for a period of 10 years.
This program is aimed at individuals who are retired, self-employed, or who receive foreign-source income.
With its mild climate, affordable living costs, and high quality of life, Portugal has become a popular destination for those seeking a change of scenery.
Benefits of the NHR Tax System:
As an expat with a D7, D2, or D8 visa, you can take advantage of the NHR and enjoy tax-free income from foreign sources, including dividends and royalties, or if you are a high value added professional you can onjoy a flat rate of 20% tax on income generated in Portugal .
Additionally, the NHR offers a reduced tax rate of 10% on pensions, providing an attractive option for retirees.
With Portugal consistently ranked as the best country to retire in, the NHR offers an excellent opportunity to save taxes and retire abroad.
How to Qualify for the NHR Tax System:
To qualify for the NHR tax system, you must meet certain criteria, including being a tax resident in Portugal and not having been a resident in Portugal for tax purposes in the previous five years.
For the 20% flat rate, you must be engaged in a qualifying activity, such as self-employment or employment in a high-value-added activity.
For tax free income from foreign sources, the company that pays, must not be a tax resident in Portugal.
Our team of experts can help you navigate the process and ensure that you meet all the requirements to qualify for the NHR tax system.
Almost too good to be true!
If you're coming to Portugal with a D7, D2, or D8 visa looking to live or work in Algarve, the NHR tax system can provide significant tax benefits.
From tax-free income to a reduced tax rate on pensions, the NHR offers an excellent opportunity to save taxes and retire abroad in the best country to retire in with the lowest taxes in Europe.
Contact us today to learn more about how we can help you take advantage of the NHR tax system.
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Save BIG with VDP
At VDP, we understand the unique needs and challenges of non-residents who want to establish residency in Portugal and benefit from the NHR system. With our comprehensive tax services, you can: