Tax and Financial Planning

Unlock financial success & tax savings with expert planning

Effective financial and tax planning early on in your NHR tax life is key for mitigating unnecessary tax burdens on your overseas income and assets for life in Portugal.

Navigating a new financial landscape can be complex, but our proprietary solutions are designed to optimise your non-Portugal-sourced passive income—such as dividends, royalties, rental income, and retirement savings—ensuring long-term success.

Overlooking the Douro and Dom Luís I Bridge in Porto, Portugal at night
LOWER

Tax

on income

Optimise

your tax, wealth and income
Explore our unique financial and tax planning solutions

Finding the right solutions

We help you integrate with life in Portugal by optimising your tax benefits and maximising your returns over the next 20 years.
Delivering improved tax

Optimising your income and assets for tax

By leveraging our expertise, you can benefit from improved tax on your income, wealth and assets using  Non-Habitual Residency (NHR) tax system or Incentivised Tax Scheme (ITS).

This strategic approach allows you to minimise tax obligations and maximise the returns on your investments.

In addition, our unique proprietary financial and tax planning models are designed to optimise your income and assets well beyond the qualified periods for NHR or ITS tax schemes.

On average, our affluent clients receive a significantly improved tax position through our proprietary financial model for up to 20 years.

Below is how much you would pay without Portugal's NHR 0% tax incentive being applied:

Taxed up to
37%
Taxed up to
45%
Taxed up to
48%
Delivering lower tax on pensions

Special tax benefits for non-Portuguese pensions

As part of our comprehensive services, our Visa program offers exceptional tax benefits for overseas pensions.

Under Portugal's D7 Visa (known as 'passive income' or 'retirement visa') and Non-Habitual Residency (NHR) tax regime, overseas pensions are taxed at just 10% for 10 years.

This advantageous tax rate ensures significant savings and enables you to enjoy your retirement income to the fullest during your time in Portugal.

If planned early, you can structure your non-Portuguese derived pension through a bond or similar financial structure to minimise your tax after the 10 years NHR tax incentive finishes.

This needs to be planned in the first few years under NHR and cannot be left or you will start going on to standard tax rates which are 28% - 48% in Portugal after the 10 year NHR tax incentive finishes. Our clients, through early planning can optimise their tax position for up to  20 years using our proprietary and regulated financial model.

Optimising your tax for the long term

Plan early for post-NHR low tax period ending

We prioritise long-term tax planning for a smooth transition beyond the 10-year Non-Habitual Residency (NHR) low tax incentive period.

Our solutions focus on strategic financial and tax planning for post-NHR 10 year tax period, aiming to minimise tax increases and maintain an efficient structure.

By analysing your finances, exploring investment options, and providing continuous guidance, we ensure sustained tax efficiency and financial stability after the NHR phase.

Our client case studies and testimonials demonstrate a significantly improved tax position for up to 20 years.

By helping our clients plan early enough in the NHR tax regime life, we optimise their tax position and  reduce the serious risk of paying the Portuguese progressive tax rates, which can range between 28% and 48% after the qualifying 10-year NHR tax period.

NHR low-tax timeline: Planning your financial path

Learn how Non-Habitual Residency (NHR) offers significant tax benefits for a period of ten years, and the importance of planning early enough for when it ends.

0 Years

Preparing for Non-Habitual Residency

Understand the requirements and assemble your documentation for low tax status

Familiarise yourself with the NHR tax regime, ensuring you meet the eligibility criteria. Our experts will guide you through the necessary paperwork and financial preparations for a smooth NHR application process and ensure you plan early to avoid higher standard tax rates when it ends.

1-6 Years

Attractive tax incentives during NHR

Enjoy 0% tax on non-Portugal derived income and 10% on pensions

During the 10 year NHR low tax status, you'll benefit from 0% tax on foreign-sourced income, including dividends, royalties, and rental income. Additionally, you'll take advantage of reduced tax rates on qualifying non-Portuguese pensions to further optimise your tax savings.

6-10 Years

Planning for post-NHR

Prepare for a smooth transition beyond the NHR period to maintian tax effieciency

As your NHR low tax period nears its end, our experts will help you strategise for the post-NHR phase. We'll assist in minimising potential tax implications and devising long-term financial plans to ensure a stable future with continued tax efficiency. This cannot be optimised if not planned early enough and well before the 10 year tax incentive ends.

10+ Years

Prosperous Residency Beyond NHR

Enjoy the Portuguese lifestyle with ongoing support and financial advice

After completing the NHR tax period, our team will continue to provide ongoing support for tax planning and wealth creation, ensuring your financial stability and making the most of your residency in Portugal.

Client case studies

Significant tax savings for a wealthy UK couple who moved to Portugal

"We always dreamed of living in Portugal, but the process seemed so complex, especially because we had royalties and pensions back in the UK. Portugal Pathways walked us through every step, from choosing the right visa to navigating the tax benefits of the Non-Habitual Residency (NHR) programme. They even helped us find our beautiful luxury villa and set up private healthcare and other lifestyle elements."
Amelia Thompson
Vilamoura
Significant tax savings for a wealthy UK couple who moved to Portugal
Expat admiring the rocky Algarve coastline in Portugal

Making the most of your wealth

Discover the straightforward process of how we can help optimise your tax and financial planning and make life in Portugal as seamless as possible.

Initial free consultation

Understand your needs and situation in Portugal to provide tailored services and solutions.

Personalised plan

Receive a customised plan to navigate the first 10 years of NHR, including 0% tax on foreign income and 10% tax on retirement income.

Long-term tax planning

Continuously optimise tax strategies beyond the 10-year period for a financially secure future.

Talk to our experts

Maximise your wealth, tax status, property and life in Portugal

Schedule a free consultation with one of our expert team so that we can offer personalised support to meet your specific needs.

Please note that during the Christmas and New Year period, response times for form submissions may be longer than usual. We appreciate your understanding and patience during this festive season. Our team will do their best to attend to your submissions as promptly as possible. Wishing you a wonderful holiday season!
In order for us to best help you, please state: what solutions you require, the status of your residency, if you hold NHR tax status, if you are currently applying/intending to apply for NHR, if you hold a NIF ID, if you are currently applying/intending to apply for a NIF ID, if you have medical insurance in Portugal, and if you have proof of an address in Portugal, in addition to any other pertinent information.
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Frequently
asked questions

Find answers to commonly asked questions about our tax and financial planning solutions.

What is the Non-Habitual Residency (NHR) tax regime in Portugal?
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The Non-Habitual Residency (NHR) tax regime came into effect in 2009 and is a tax regime designed for non-residents or individuals who become tax residents in Portugal. The NHR tax regime offers 0% tax on non-Portugal derived passive income such as dividends and royalties as well as 10% on pensions 10 years. The NHR tax regime however, will end to new entrants on the 31st of December. 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.

What are the costs associated with the NHR tax regime in Portugal?
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The costs associated with the NHR regime in Portugal vary depending on individual circumstances. The NHR tax regime however, will end to new entrants on the 31st of December. 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.

Can I apply for NHR tax status if I am already a resident in Portugal?
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Yes, you can if you are not a tax resident in Portugal. The tax regime is only open to individuals who have not been tax residents in Portugal for the past five years. The NHR tax regime however, will end to new entrants on the 31st of December. 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.

Are there any restrictions on the type of passive income or pensions eligible for tax savings under the NHR tax regime?
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Yes, there are restrictions on the income type eligible for the NHR tax regime. For example, income from Portuguese sources, such as rental income from a real estate property in Portugal, is unsuitable. The main benefit is on income held outside of Portugal such as pensions, rental income, dividends and royalties.

When should someone already on the NHR tax regime start planning before the 10-year exemption finishes to avoid higher tax rates?
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If someone is already on the Portugal Non-Habitual Residency (NHR) tax regime, it is advisable to start tax planning at least 5-6 years before the 10-year exemption period finishes. This is because the end of the exemption period you will be subject to progressive tax rates of up to 48%. It's important to consult with our experts early to avoid serious tax consequences.

What happens after the 10-year period of the NHR tax regime ends?
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After the ten-year period of the NHR tax tax regime ends, you will be subject to Portuguese progressive tax rates of between 28% and 48%. It is important to discuss with one our expert financial advisors regarding the implications of this, and how you can mitigate future tax burdens.

Can I work in Portugal while on the Non-Habitual Residency (NHR) tax regime?
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Yes, you can work in Portugal while on the NHR tax regime. However, the main tax benefits apply to passive income and pensions generated outside of Portugal.

How long does the Non-Habitual Residency (NHR) tax regime last?
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The NHR tax regime lasts for 10 years. During this period, current NHR tax holders can take advantage of favourable tax conditions in the double taxation agreement host country. After the 10-year period of the NHR tax regime ends, you will be subject to the regular Portuguese progressive tax rates. It is important to discuss with one of our financial advisors on the implications of this, and how you can mitigate future tax burdens