Tax Benefits

Non-Habitual Residents

In 2009 Portugal created the tax regime for non-habitual residents (RNH) that was designed to promote the transfer of residence to Portugal for investors, specialized professionals and entrepreneurs.

The special regime for Non-habitual Residents applies to single persons and provides for the reduction or the exemption from income taxo f dependente or independente workers, regarding pensions, capital gains and othe income for a period of 10 years.

BENEFITS:

Wages obtained in Portugal arising from a high value-added activity applies a flat tax rate of 20%.

Income obtained abroad may be totally exempt:

• For property income, rentals and capital gains, the exemption applies to the income that can be taxed in the country of origin, provided i tis not considerde a “tax haven”.
• For benefits and retirements pensions the exemption is granted, provided that the income is not considered as obtained in Portugal.

SPECIFIC REQUIREMENTS:

To be considered as a tax residente in Portugal according to the rules of taxable residency:

• Stay in Portugal more than 183 days in a period of 12 months.
• To have a house that can be considered as usual residence (rent or purchase), in December 31st of the year in question.

Not been taxed in Portugal in the last five years.