This webinar featured an expert panel of tax advisors and international cross-border wealth management specialists who discussed the differences between the old NHR tax regime and the proposed NHR 2.0 tax scheme for expats. The webinar also covered other significant benefits of being in Portugal, including succession planning and inheritance.
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This webinar delved into the details of Portugal’s newly proposed NHR 2.0 tax incentive, designed for entrepreneurs and professionals bringing their productivity and overseas income from assets into the country, as well as new businesses, innovation, and scientific research.
This exclusive webinar featured tax advisors and wealth management specialists who discussed the eligibility criteria for NHR 2.0, activity requirements, and the key differences between the old and new NHR tax regimes.
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Event Highlights:
The event panellists included:
Hosting this event, we had Steve Philp, Partnership Director at Portugal Pathways.
Disclaimer: The guidance below and Q&As 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.
Jane is asking:
If I apply for the old NHR tax regime at the financas this year does that guarantee me being accepted on the old NHR?
Whether you get accepted into the old NHR tax regime if you apply in 2024, is soley dependant on you meeting the grandfathering conditions laid out by the government at the end of 2023. These state that you must have documentation proving your intent to reside in Portugal. These documentations may include:
1. Obtained a Portuguese tax identification number (NIF) from the Portuguese tax authority, the Autoridade Tributária e Aduaneira (AT).
2. Established a residential address in Portugal. This could be evidenced by a rental agreement, property ownership documents, and utility bills in your name.
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.
4. Opened a Portuguese bank account to facilitate financial transactions and meet the residency requirements.
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.
Antonia is asking:
What do I need to be considered as a Portuguese Tax Payer in 2024?
In Portugal, your residency status determines if you're considered a taxpayer. Generally, you're a tax resident if you spend at least 183 days (consecutively or not) in Portugal during the tax year (January 1st to December 31st). Alternatively, even with fewer days in Portugal, you qualify as a resident if you have a permanent residence there on December 31st of the tax year.
As a resident, you'll owe taxes on your worldwide income. There are also simplified tax regimes for specific income categories, but residency is the key factor.
Neil is asking:
Can you pause your NHR Status for 1 year?
No, there's no pausing option for the NHR status in Portugal. It's an all-or-nothing program. If you currently hold NHR status, it applies to your worldwide income for the entire 10 year period granted. You can't temporarily suspend the benefits and then pick them back up later.
David is asking:
Can the NHR be deferred by 1-2 years if applied for now.
This is a complicated question and depends heavily on a number of circumstances such as you having proof of intent to qualify for grandfathering expemtions and other factors. It is highly recommended that you speak to one of our expert NHR tax advisors about this decision.
James is asking:
On Pensions if you have old NHR does the 10% still apply ?
Yes, if you currently have the old NHR tax regime you still qualify for the 10% tax on pensions.
Schedule a free consultation with one of our expert team to understand how you can maximise your future financial and tax position as a wealthy international expat in Portugal.
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Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice.