What is Non Habitual Resident status?
Non-Habitual Resident (NHR for short) is a fiscal status that you can apply for and obtain when you move your residence to Portugal. This can be through the European Union Residence Certificate (CRUE) or through a visa applicable to third countries (i.e. D7 visa).
NHR status is applicable to highly qualified non-resident professionals and people that are getting pensions from third countries. This last condition is why Portugal has become so popular with pensioners from countries all over the world.
The benefits of the NHR status are effectively lower tax charges on your income. Although there used to be a 0% rate on pension income, this is now 10%. This tax rate will be applicable for 10 years. The rate for income on individuals coming under the “high value added professions” remains at 20%.
This is still an incredibly competitive rate compared with the normal Portuguese tax regime or indeed other countries. This is specially true when you account that as resident you have access to all the same services as any Portuguese citizen, such as the heavily subsidized healthcare system.
You will need to double check if there is an agreement for double taxation. This is so you don’t end up paying taxes on your income, in both countries. For example, Portugal and UK have an agreement to avoid double taxation. In this instance, if you become a Portuguese resident and transfer your pension payments to Portugal, you will only need to pay tax in Portugal. Under the NHR status, this would be 10% for 10 years.
But always get advice from a competent accountant to understand what is applicable to your unique situation. You must understand the implications of changing your tax residence to a different country.
Who can apply for Non Habitual Resident status?
- Any person that requests the NHR status must have obtained resident status in the same year the request is made.
- Must have not been a resident in any of the previous five years the request is being made.
When should you request Non Habitual Resident status?
- You can only do this after you are registered as resident in Portugal.
- The deadline to register as NHR is 31st of March of the following year, after you became a Portuguese resident.
How to register
- You can do it online, on the Portuguese Tax Office website (Portal das Finanças), or
- On paper, in any Portuguese Tax Office.
How to register online?
Go to Portal das Finanças here, and register on the website. Fill in the registration form and an access password will be sent to you to your registered address.
Once you receive your password, you need to log on to the website and request NHR status. You need to complete the necessary form, that you can find by the following options on the left hand side menu:
Serviços Relacionados > Serviços > Dados Pessoais > Residente Não Habitual
The menus on the website change frequently. So, we’re giving you what is currently the link to access the registration form, but this can change at any time – CLICK HERE. Once you are logged in, if you click or copy and paste this link, it should give you direct access to the page. There you need to click on “Entregar pedido”. At this stage, the page seems to be only available in Portuguese. So you might need to ask help from a Portuguese friend with the completion of the form.
The official Tax Office guidance form is available in English on this link. This was last updated in June 2020, and this article is based on this guidance.
Can I follow up the status of my application?
Yes, you can. In the same link where you submitted your request, as above. There’s a button called “Consultar pedidos”, where you can check this. In the same way, if you need to amend the request, there’s a button to “Alterar Pedido”.
What if my registration is suspended?
This is usually because although you might be living in Portugal, you have not registered as resident. In this case you must register as resident in Portugal and provide evidence within 20 days of the suspension, at a local Tax Office.
After this your request will either be accepted or rejected.
What if my request is rejected?
If by any chance your request for NHR status is rejected, you will be informed. You can appeal this decision and will need to provide the reasons and any supporting documentation.
The Portuguese Tax Office website uses both email and text messages (Portuguese mobile numbers only) for communicating with you. But for this you must validate both these communication methods on their website. So, once you registered and are able to log in, make sure you do this.
You can get in touch with the Portuguese Tax Office via:
- telephone, on (+351) 217 206 707, Monday to Friday (except Bank holidays), 9am to 7pm
- e-balcão facility on their website
- by appointment at any local Tax Office