LEGAL INSIGHTS

Portugal’s Non-Habitual Resident (NHR) tax regime is undergoing significant changes, prompting questions and concerns among expats and potential residents.

As of January 1, 2024, new tax residents will no longer have access to the NHR regime in its current form, except for those eligible under the grandfathering provision outlined in the 2024 State Budget Law. This means that individuals seeking NHR status must become tax residents in Portugal by the end of December 2024 and meet specific criteria upon application. These criteria include:

• Having signed a (promissory or) employment contract or secondment agreement by December 31, 2023, with duties to be carried out in Portugal;
• Having signed, by October 10, 2023, a lease or other contract allowing for the use or possession of a property in Portugal;
• Having signed a reservation or promissory contract for property acquisition by October 10, 2023;
• Having enrolled or registered dependents at an educational institution in Portugal by October 10, 2023;
• Holding a residence visa or residence permit valid until December 31, 2023;
• Having initiated the procedure for obtaining a residence visa or permit with a Portuguese Consulate or AIMA (formerly SEF) by December 31, 2023.

For expats and individuals considering relocating to Portugal, the changes to the NHR regime introduce new considerations and timelines to navigate. Prospective residents must carefully review the updated requirements and deadlines to determine their eligibility for NHR status, either under the grandfathering provision or under the “new NHR” regime with a narrower scope, which is applicable only to some professionals and situations.

For more information or assistance with navigating Portugal’s NHR regime changes, please contact us at geral@sbpslegal.com.