What is the current status of the Non-Habitual Residency (NHR) tax regime in Portugal

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On October 3rd, during a CNN Portugal interview, Prime Minister Antonio Costa hinted at the discontinuation of the Non-Habitual Residency (NHR) tax scheme, stating it "may be phased out by 2024."

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Though the Prime Minister mentioned "2024", it doesn't necessarily mean an immediate stop on January 1, 2024. Legislative measures often require time, and a mid-to late in 2024 end seems more probable but this can’t be assumed.

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The final decision awaits the legislative procedure's conclusion. Given the current political climate and past decisions made by the Prime Minister, the discontinuation of the NHR scheme is likely.

However, like the Golden Visa program due to public pushback, the NHR might only be modified to retain key benefits.

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For expats and those considering Portugal as a future home, this news is significant.

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What are the current implications for NHR beneficiaries?

If you currently benefit from NHR, changes might not affect you. Revoking this would challenge Portugal's constitutional principles. Prime Minister Costa emphasized that those with the status would retain it.

However, you should start planning for the end of the NHR regime now. You may also want to consult with our experts to discuss your individual circumstances and options.

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How does this affect legal residents in Portugal

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If you're a legal resident but haven't acquired NHR status, it might be wise to apply soon to safeguard against potential changes.

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How does this affect those in Portugal without legal residency

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Due to looming uncertainties, it's recommended you expedite your legal residency process.

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How does this affect those contemplating a move to Portugal?

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Initiating your move promptly may still allow you to benefit from the NHR scheme. If you're prone to delays, it's best not to wait. Should you stay committed to moving, act swiftly.

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Plan early for NHR scheme to End  

Regardless of the NHR's future, we remain available to guide you on optimizing your relocation or life strategy in Portugal.

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Seeking clarity on your own NHR position?

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If in doubt, please contact our expert team to ensure you're correctly positioned for upcoming changes. If you're considering relocating to Portugal under a visa scheme, it's crucial to register promptly.

For deeper insights, join our webinar on October 24th, 2023,10.30am Lisbon or London time. We'll continue to keep you informed as more details emerge.

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Disclaimer: The guidance above should not be fully relied upon and does not constitute formal instructed professional advice. In relation to tax advice in Portugal, please engage and instruct a regulated professional for all tax advice and structured financial planning. Please contact Portugal Pathways if you would like an introduction to one of our professional advisors.

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