Non-Habitual Resident (NHR): What you need to know

30 August 2022
Rui Pedro Fonseca

01.  Does the NHR allow you to stay in Portugal?

The short answer is no. The NHR is not a visa, it is a program open to new tax residents of Portugal, regardless of their nationality and may be a good option if you’re aiming to find a more efficient tax wise jurisdiction, so as to reduce your current tax liability, on some occasions even secure a tax exemption depending on the sources of income and the country of source. The NHR applicant, if not an EU national, should first obtain a temporary permit from the Portuguese Immigration and Border Service first (SEF) and only then enroll in the NHR tax regime.

02.  Will the NHR tax regime grant me an automatic exemption on all foreigner sources of income?

Enrolling in the NHR will not grant you an automatic exemption on all foreign sources of income. The eventual benefits and exemptions must be analyzed in a case-by-case basis, which is done by examining each one of the sources of income and the source country to assess how the income will be taxed in Portugal under the NHR.

03.  Do I need to stay and live in Portugal to have the benefits of the NHR?

Even though NHR means non-habitual resident that doesn’t imply that you aren't registered as a taxpayer in Portugal. The NHR is available for tax residents who have not been Portuguese tax residents in the country in the previous 5 years. As a tax resident you should stay in Portugal at least 183 days whether consecutive or not in a period of 12 months or, if less than that, have a place of abode that is deemed to be your habitual home.

04.  Should I expect updates on the NHR in the next few years?

The NHR is a very stable regime, having been the subject of only one major change, back in 2020. The government decided then to change the pension income tax rate in some cases from 0% to 10% to align it with international taxation standards, but apart from said change, the regime is resilient and stable since inception.

05.  Will the NHR cover all my family or only me as a single applicant?

The NHR is an autonomous and single application. It will only affect the tax status of the individual that enrolls in this regime.

06.  Should I give my NIF every time someone asks me at a restaurant or a gas station? Will it make any difference or impact my tax liability in Portugal?

To a taxpayer that is already enjoying a tax exemption or a flat tax rate of 20% or 10%, giving their NIF won't impact their tax liability. For the remaining cases it would be worth to give the NIF number when paying for goods or services, to offset the expenses later against the taxable income. Nevertheless, a complete and full answer to this question will always require an analysis of the taxpayer personal’s case.

07.  What will happen if I leave the country 5 years after I get the NHR status?

The Tax Authority won’t revoke any of the NHR benefits that you enjoyed during these 5 years. You can always come back before the end of the NHR period to reactivate your NHR again and enjoy the remaining period available.

08.  Is it possible to extend the NHR period of 10 years?

It is not possible to extend this period. After 10 years, you will be taxed as a regular tax resident and subject to the general Portuguese tax system.

If you have further questions regarding this matter, get in touch with us and we will be delighted to assist you.


Rui Pedro Fonseca

Lawyer

11 July 2025
The Portuguese Parliament has decided to postpone the vote on the proposed amendments to the Nationality Law until September 2025. The decision was taken in a meeting of the Committee on Constitutional Affairs, Rights, Freedoms and Guarantees, following pressure from several political parties who requested more time to assess the implications of the proposed reform. The delay allows for additional hearings with legal experts, immigrant associations and civil society representatives before a final vote is held in plenary session. The proposed reform introduces significant changes to the current legal framework for acquiring Portuguese nationality. Among the most impactful measures is the extension of the minimum legal residence period required before applying for naturalisation. Under the new proposal, this period would increase from the current five years to seven years for nationals of CPLP countries (Community of Portuguese Language Countries), and to ten years for applicants from all other countries. Another major change concerns the introduction of mechanisms to revoke Portuguese nationality . According to the proposal, naturalised citizens who are convicted of serious crimes — defined as those resulting in prison sentences of five years or more , within ten years of acquiring nationality — could see their Portuguese citizenship revoked by a court decision, based on a proposal from the Public Prosecutor’s Office. In addition, the reform would tighten the requirements for acquiring original Portuguese nationality through birth in Portugal. For children born in Portuguese territory to foreign parents, it would become mandatory that at least one parent has been residing legally in Portugal for a minimum of three years , instead of the current two years. Although the government initially intended to approve these changes before the summer recess, political consensus has not yet been reached. Left-wing parties have raised concerns regarding the constitutionality of retroactive revocation of nationality and the potential impact on the rights of long-term residents and immigrant communities in Portugal. In response, the parliamentary committee agreed to postpone the process and schedule a new round of expert hearings in early September. A final vote on the reform is now expected to take place later that month. Until then, the current version of the Nationality Law remains in force , including the five-year legal residence requirement for naturalisation. Applicants who meet this requirement and wish to apply under the current rules may still do so in the coming weeks.
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