Maintaining NHR status requires meeting eligibility criteria, including minimum days in Portugal, and avoiding changes in tax residency or becoming a resident in another country.
Yes, you can lose your Non-Habitual Resident (NHR) status in Portugal under certain conditions. Here’s how and when this can happen:
1. Failure to Meet Residency Requirements
- Permanent Departure from Portugal: If you move out of Portugal and no longer meet the residency requirements, your NHR status can be revoked. Specifically, if you spend less than 183 days in Portugal in a given year, or if you do not have a permanent residence available in Portugal, you may no longer be considered a resident for tax purposes.
2. Non-Compliance with NHR Rules
- Non-Compliance with NHR Obligations: If you fail to comply with the rules and obligations set out under the NHR regime, such as incorrect tax filings or failing to declare income correctly, you could risk losing your NHR status.
3. Changes in Tax Residency
- Change in Tax Residency Status: If you become a tax resident in another country and no longer meet the criteria for being a tax resident in Portugal, your NHR status could be affected. This includes situations where your center of economic interests or habitual abode shifts to another country.
4. Changes in Legislation
- Legal Amendments: Changes in Portuguese tax laws or modifications to the NHR regime itself could potentially impact your eligibility. If the legal framework governing the NHR status changes and you no longer meet the new criteria, you might lose your status.
5. Failure to Maintain NHR Qualifying Conditions
- Involvement in Ineligible Activities: If you engage in activities or professions that do not qualify for NHR benefits or if your income sources change to those not covered under the regime, you might lose the tax advantages associated with NHR status.
6. Revocation by Authorities
- Administrative Actions: In cases where authorities find that you do not meet the conditions for maintaining NHR status, they may formally revoke your status.
Summary
To avoid losing your NHR status, ensure you consistently meet the residency requirements, comply with all tax obligations, and stay informed about any changes in the legislation affecting the NHR regime. If your circumstances change or if you need to move out of Portugal, it’s advisable to consult with a tax advisor or legal expert to understand the implications for your NHR status.