Portugal's Non-Habitual Residency (NHR) tax regime has been a beacon for international migrants for years. However, with the Portuguese government planning to terminate the NHR scheme by the end of 2023, prospective migrants are questioning whether there's still time to leverage this program. In this comprehensive blog post, we will explore the viability of applying for the NHR scheme before its anticipated closure and what you need to accomplish to meet this imminent deadline.
Incepted in 2009, the NHR scheme was designed to make Portugal an attractive destination for retirees, investors, and highly-skilled professionals from around the globe. The scheme offers competitive tax benefits and exemptions that have played a pivotal role in transforming Portugal's image from a high tax nation to a lucrative relocation haven for expats worldwide.
Within the framework of the NHR scheme, Portugal presents a diverse culture, high quality of life, and a robust economy that encourages fruitful investments and opportunities for personal growth. The country's picturesque landscapes and historical architecture add to its charm, making it a desirable home for people of various walks of life.
The government's recent announcement of its intention to end the NHR scheme by the close of 2023 has sparked numerous concerns among potential migrants, current NHR beneficiaries, and those in the process of applying. It's important to remember that for current NHR beneficiaries, your rights and benefits will remain unaffected for a period of ten years from the date of becoming a tax resident in Portugal.
The pending deadline has created a sense of urgency among those intending to leverage the NHR's advantages. The window of opportunity is gradually narrowing, meaning that potential applicants need to hasten their relocation plans.
For those contemplating relocation to Portugal, now is the time to expedite your plans. Despite the impending closure, the NHR scheme remains open for registration until the end of 2023. Therefore, prospective applicants must act swiftly to secure the benefits before the window of opportunity closes.
To apply for the NHR scheme before the deadline, the first step is to become a tax resident in Portugal. For both non-EU and EU citizens, this process involves obtaining a Portuguese Numerio De Identificaçao Fiscal (NIF), establishing a permanent address in Portugal, and subsequently applying for the NHR status.
Golden Visa holders also need to tread strategically. If the NHR scheme was part of your original plan for moving to Portugal, it's essential to explore options for establishing your tax residency in Portugal in 2023.
For individuals earning an annual income above 30,000 Euros from high-value activities or those with foreign-sourced income, making it into the NHR scheme can result in substantial tax savings over a ten-year period.
Despite the NHR scheme coming to an end, Portugal's allure will continue to persist, thanks to its rich culture, excellent living standards, and promising opportunities.
You can learn more about the future program to attract foreigners called ITS here: https://anchorless.io/nhr-portugal/changes-nhr-portugal.
At AnchorLess, we strive to provide you with the latest information and strategies to navigate this period of transition. We're hosting a webinar geared towards helping you understand the implications of the NHR closure and strategies to meet the deadline. You can sign up here.
Should you require personalized advice on how the upcoming changes could impact you, schedule a consultation with our tax expert. We're here to assist you in making well-informed decisions about your future.
Stay connected with our blog for further updates on the NHR scheme and other essential topics.
Updated at 10-26-2023 by AnchorLess
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