Recent update regarding the NHR tax regime:
The Portuguese government announced in their state budget for 2024, that the NHR tax regime closes to new entrants on the 31st of December 2023, and only those that have applied before this date and have taken serious steps to prove intent and meet the grandfathering items laid out by the government can be eligible to receive NHR tax status in 2024.
If these requirements are 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.
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.
How does this affect legal residents in Portugal
If you're a legal resident but haven't acquired NHR status, it might be wise to apply soon to safeguard against potential changes.
How does this affect those in Portugal without legal residency
Due to looming uncertainties, it's recommended you expedite your legal residency process.
How does this affect those contemplating a move to Portugal?
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.
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.
Seeking clarity on your own NHR position?
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.
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.
