Once granted, NHR status cannot be revoked retroactively. It is crucial to meet criteria and stay informed to maintain status and avoid potential issues.
In Portugal, the Non-Habitual Resident (NHR) status generally cannot be revoked retroactively. Here’s a detailed explanation:
Revocation of NHR Status
**1. Revocation Conditions:
- Non-Compliance: The NHR status can be revoked if the individual fails to comply with the requirements of the NHR regime. This includes not maintaining residency in Portugal or failing to fulfill tax obligations.
- Fraud or Misrepresentation: If it is discovered that the NHR status was obtained through fraudulent means or misrepresentation, the status can be revoked.
**2. Retroactive Effects:
- General Rule: Generally, if NHR status is revoked, the revocation applies from the date of the decision forward. It does not affect periods when the status was valid.
- Tax Adjustments: If the NHR status is revoked, the individual may be required to pay any taxes that were exempted or reduced due to the NHR status for the period in question, but this adjustment is usually applied from the date of revocation, not retroactively.
**3. Legal Framework:
- Portuguese Tax Code: The legal framework governing NHR status is set by Portuguese tax law. This framework typically ensures that revocation does not impact previous periods unless there was clear evidence of non-compliance or fraudulent activities.
**4. Implications:
- Future Tax Liabilities: Upon revocation, individuals may face regular Portuguese tax rates and obligations on their income from the date of revocation onward.
- Administrative Procedures: The process for revocation involves administrative procedures and can be contested through legal channels if an individual believes the revocation was unjustified.
**5. Advisory:
- Seek Professional Advice: If you are concerned about the potential for revocation or need clarification on your NHR status, consulting with a tax advisor or legal expert specializing in Portuguese tax law is advisable. They can provide guidance based on your specific circumstances and help ensure compliance with all requirements.
In summary, while the NHR status itself cannot typically be revoked retroactively, there may be adjustments to tax obligations from the date of revocation onward if non-compliance or other issues are found.