NHR Tax Status Grandfathering Conditions

The Portuguese government announced in their state budget for 2024, that anyone who has applied to secure NHR tax status in Portugal by December 31st, 2023, must be able to prove they have taken serious steps to prove intent to reside and pay tax in Portugal under NHR tax regime.

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Here are the five crucial things you must have in place before the December 31st deadline to prove your intent and ensure you qualify for grandfathering as laid out by the government in its state budget at the end of November:

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1. Obtained a Portuguese tax identification number (NIF) from the Portuguese tax authority, the Autoridade Tributária e Aduaneira (AT).

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2. Established a residential address in Portugal. This could be evidenced by a rental agreement, property ownership documents, and utility bills in your name.

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3. If you have dependants joining you in Portugal, provide proof of their schooling arrangements in the country before the 2023 December deadline for the school year ahead.

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4. Opened a Portuguese bank account to facilitate financial transactions and meet the residency requirements.

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5. For non-EU residents, you must also provide evidence of your intention to reside in Portugal. This could include a visa appointment confirmation, or a visa residency card issued prior to the December 31st deadline.

Please note that if you failed to meet these requirements by the deadline, you are highly unlikely to be eligible for any of the grandfathering dispensation items mentioned above.

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If this is not in place, it is borderline impossible for the professional supply chains in Portugal to be able to grandfather your NHR tax status application, early in 2024.

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We are not taking further enquiries on this matter until the new year as all of the professional supply chain is not taking further instructions until the first week of January and again only if they met the grandfathering conditions above in 2023.

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