The Uncertain Future of the Non-Habitual Resident (NHR) Tax Regime

10 November 2023

On 9th November, the President of Portugal announced the dissolution of the parliament and called for an early general election on 10th March 2024, following the resignation of the Prime Minister, as mentioned earlier in this article.

 

In the national address, the President announced the scheduling of elections for 10th March 2024, ensuring the discussion and approval of the 2024 state budget, with the final vote scheduled for 29th November 2023.

 

At this stage, there are three possible outcomes for the future of the Non-Habitual Resident (NHR) Tax Regime:

1.    The termination of NHR in 2023 is approved, as proposed in the State Budget;

2.    The end of the tax regime is extended beyond 31st December 2023;

3.    The initiative is removed from the State Budget.

 

Until 29th November, there is no certainty regarding the future of the NHR tax regime. We recommend taking action before the end of 2023 to avoid potential issues, given that the official end date is still 31st December 2023.

 

If you have any further inquiries regarding this matter, please do not hesitate to contact us.


Photo Credit: © Rui Ochoa / Presidência da República

The legal framework for the RCBE is set out in Law No. 89/2017.

Understanding the RCBE: Central Register of Beneficial Ownership in Portugal

by Tomás Melo Ribeiro • 23 April 2025
The Central Register of Beneficial Ownership (RCBE, Registo Central do Beneficiário Efetivo) is a mandatory register established by the Portuguese government.
Portuguese Tax Return - How to apply for a submission deadline extension.

Extending the Personal Income Tax Return Submission Deadline in Portugal: When and How to Use Model 49

by António Pratas Nunes • 21 April 2025
Submit IRS Modelo 3 in Portugal by 30 June 2025 or request an extension until 31 December with Modelo 49 in specific cases.
Novas regras para a concessão,renovação e substituição da Autorização de Residência CPLP em Portugal

Guia Atualizado da Residência CPLP: Concessão, Renovação e Substituição em 2025

by Sara Sbai Oliveira • 16 April 2025
Nova lei reformula Autorizações CPLP: cartão físico de 2 anos, visto consular obrigatório e acesso à livre circulação no Espaço Schengen.
Purchasing a newly built or extensively renovated home is one of life’s most significant investments

New or fully renovated home and old problems? What you can do if your “Brand New” property starts falling apart in Portugal

by Margarida Tempera • 14 April 2025
Bought or renovated a home in Portugal and found defects? You may have legal protection, with warranty periods from 5 to 10 years under Portuguese law.
Portugal remains an attractive jurisdiction for international investors.

Branch or Subsidiary? Structuring Your Business Expansion into Portugal

by Tomás Melo Ribeiro • 3 April 2025
A branch is not a separate legal entity. It operates as an extension of the parent company and is fully dependent on it, both legally and financially.
Portugal has implemented a series of tax benefits to encourage urban rehabilitation.

IMT Exemption and Refund: A Key Incentive for Urban Rehabilitation in Portugal

by Diogo Pedro and Cleuzina Cruz • 1 April 2025
To maximise these benefits, property buyers should assess eligibility before purchasing a property, ensuring it meets the criteria for IMT exemption.
The most important requirement is demonstrating an effective connection to the Portuguese community

Citizenship by Marriage or Civil Partnership: When Can the Public Prosecutor Oppose It?

by Florbela Lopes • 31 March 2025
Acquiring Portuguese citizenship through marriage or a civil partnership with a Portuguese national may appear to be a straightforward legal process.
The present overview provides a comprehensive and structured analysis of the D2 Visa.

From Concept to Incorporation: The D2 Visa and Business Establishment in Portugal

by Luís Maria Branco and Tomás Melo Ribeiro • 28 March 2025
The D2 Visa allows non-EU, EEA, and Swiss nationals to legally start a business, invest, or engage in entrepreneurial activities in Portugal.
AIMA may suspend the 'green lane' if there are security concerns or significant difficulties.

Portugal Introduces a Streamlined Work Visa Process

26 March 2025
A “green lane” will be established to streamline the work visa process for foreign nationals being recruited by Portuguese companies.
Here are some insights and practical recommendations to help you through the 2024 tax season.

2024 Tax Return Season

by António Pratas Nunes • 25 March 2025
The income earned in 2024 must be declared between 1 April and 30 June 2025 by submitting the IRS Model 3 declaration.
More posts