To qualify for NHR status in Portugal, individuals must not have been tax residents in the country for the past five years.
Eligibility for Non-Habitual Resident (NHR) status in Portugal is open to individuals who meet specific residency and prior residency requirements. Here’s a breakdown of the criteria:
1. New or Returning Residents
- New Residents: To be eligible for NHR status, you must be a new tax resident in Portugal. This means you have not been taxed as a Portuguese resident in the five years preceding your application for NHR status.
- Returning Residents: If you were previously a tax resident in Portugal but have lived outside the country for at least five years, you may requalify for NHR status upon returning to Portugal.
2. Establishing Tax Residency
- 183-Day Rule: To qualify as a tax resident, you must spend at least 183 days in Portugal during a calendar year, either consecutively or non-consecutively. Alternatively, you can qualify by maintaining a permanent home in Portugal as of December 31st of that year.
- Permanent Home: If you do not meet the 183-day requirement, you can still be considered a tax resident if you have a permanent home in Portugal that you intend to use as your primary residence.
3. No Recent Residency in Portugal
- Prior Non-Residency: You must not have been a tax resident in Portugal during the five years before applying for NHR status. This requirement ensures that the NHR regime benefits newcomers and returning residents who have not recently lived in Portugal.
4. Professionals in High-Value-Added Activities
- High-Value-Added Professions: While anyone who meets the residency requirements can apply for NHR status, those who work in high-value-added professions (such as scientific, artistic, technical, or similar fields) can benefit from additional tax incentives, including a reduced flat tax rate of 20% on Portuguese-sourced income.
Summary
To be eligible for NHR status in Portugal, you must be a new or returning tax resident who has not been a Portuguese tax resident in the previous five years. You need to establish tax residency by spending at least 183 days in Portugal or having a permanent home in the country. Professionals in high-value fields can benefit from additional tax incentives under the NHR regime.