Portugal's new tax regime for expats (2024)

IMPORTANT – PLEASE READ REGARDING THIS CHANNEL

The content on this channel is for educational and information purposes only. It should not be relied on as advice, and you should always take qualified advice before making any changes to your personal position.

Whilst I have experience in the financial and tax industry, this channel is for recreational purposes and is not an advertisement for my business or services. Its purpose is to share quality information.

Whilst every care is taken as to the accuracy of the information in these videos, the information provided is based on the understanding of the rules at the time, and rules can change with little or no notice.

Whilst I cover a wide range of issues on the channel, in my professional role I specialise in tax efficient investments, UK and overseas pensions, estate planning, and wealth management for expatriates based in Portugal. Unfortunately, I do not offer visa or tax return services, nor can I assist US nationals.

*Thank you for your support and understanding. I hope to continue to provide you with valuable information to help you with your life in Portugal. If you have any suggestions for content you would like to hear, please let me know*

2024 is a transitional year for new residents to Portugal in that they have (potentially) three different tax regimes under which they could be taxed.

The Non Habitual Residence regime which started in 2008 has been closed to new entrants from 1st January 2024. However, there exists transitional rules that could still offer the possibility of qualifying under the now defunct regime. Please see article below for further details on this:

With the closure of the old regime came the introduction of a new regime for those relocating to Portugal. As of yet it has no name so some are calling it NHR 2.0 or the “new Non Habitual Residence” regime.

If you cannot qualify under either of these schemes then you simply enter the standard Portuguese tax system.

In this video we provide a brief overview of the key details.

Timestamps

01:09 Non Habitual Residence
02:00 Benefits of Non Habitual Residence
02:42 Main drawback of Non Habitual Residence
03:18 High valued activities under Non Habitual Residence
04:10 Transitional rules for Non Habitual Residence
04:56 The new tax regime
07:00 Benefits of the new regime
07:50 Exceptions – pension income and income from blacklisted jurisdictions
08:32 Standard Portuguese tax residence

[taxfinancialadviceinportug]

IMPORTANT – PLEASE READ REGARDING THIS CHANNEL

The content on this channel is for educational and information purposes only. It should not be relied on as advice, and you should always take qualified advice before making any changes to your personal position.

Whilst I have experience in the financial and tax industry, this channel is for recreational purposes and is not an advertisement for my business or services. Its purpose is to share quality information.

Whilst every care is taken as to the accuracy of the information in these videos, the information provided is based on the understanding of the rules at the time, and rules can change with little or no notice.

Whilst I cover a wide range of issues on the channel, in my professional role I specialise in tax efficient investments, UK and overseas pensions, estate planning, and wealth management for expatriates based in Portugal. Unfortunately, I do not offer visa or tax return services, nor can I assist US nationals.

*Thank you for your support and understanding. I hope to continue to provide you with valuable information to help you with your life in Portugal. If you have any suggestions for content you would like to hear, please let me know*

[Wearywillie-xt]

The music in the background is a distraction

[Sabhail_ar_n-Alba]

The tax implications of the new law for
retirees are frankly horrendous. Anyone
retiring there in 2024 will pay tax on their income double that what they'd pay in Uk. With it's low personal allowing of £4000 and a progressive tax band rate of 32.5% for an average income of £25k, tax would be at least around £7000 p.a. Portugal no longer competitive - Spain seems to be much better.

[BrahimM.-vhsk]

Hi, I have a doubt. If now in 2024 a person living in Spain wants to move to Portugal and take advantage of the old NHR, if he obtains a rental contract dated before (December 31, 2023 or October 10, 2023), would it be enough to qualify for the old NHR? 😅

[Big_Vern]

Thanks for the video, very helpful. I’m looking to move from Switzerland to Portugal later this year. When I leave Switzerland I can cash in part of my pension and pay Swiss withholding tax & transfer the money to my Portuguese bank account. However, I’m concerned that when I become Portuguese tax resident that money will be subject to tax in Portugal as it may be considered as income. Can you provide any information about this?

[username]

confused more after watcing this i think need another very basic simple video for expats or newcomers in 2024.

[SmokyRobin]

Do I understand that if I have a social security income from the us of 30k, I would pay apx 35% in tax?

[rayl]

Thx for the video.... questions please/background first: Another Portuguese (native Portuguese person) tax consultant recently told me significantly different information that you provided here, leaving me confused about the following. 1. Multi-year SEF/AIMA delays for 2022 Golden Visa application (that by Portuguese law should take a few months max) could realistically mean no residency permit in hand until AFTER 2024. Is there any solid reason to believe that competent authorities will grandfather-in the right to NHR 1.0 regardless of how many years of delay before residency permit issuance that are entirely due to SEF/AIMA? 2. So far you are the first specialist I've heard to state that NHR 2.0 will provide zero tax for foreign sourced income. In your opinion would a freelance engineer US citizen working for US client be exempted from Portuguese tax for their freelance income under HNR 2.0? If yes, please refer me to any official govt. reference backing that up? 3. It would be great to see a worked-example of 'normal' income tax calculation for Portugal where income straddles multiple progressive bands and for a married couple with different incomes. I cannot find one anywhere. Thanks so much!

[petearmstrong]

Your view of NHR 2.0 is aimed more at working people rather than pensioners. Does that mean pensioners would now fall into the standard Portuguese tax system?

[SlashArtsGalleryBoat]

Hi, i have a question. Am I still able to apply for the old NHR if I have a Nif and letter of intent to purchase a property in early 2023. I purchased the property eventually in december 2023.

[lexi]

Wow I almost moved there had my NHR ready to submit just had to give them the ok and I pulled the pin last minute as I scored a great new job. I was about to retire on my crypto profits thinking NHR didn’t tax crypto 😅 wow if they tax stocks at 28% then they must def charge crypto at 28 ? Or they still haven’t announced a tax rate for crypto ?

[Carolinapetroska]

Hello. I would like to ask for an extension to file for my return, how can I do that and where can I write to the tax office (AT) ? I do not have access to the finance portal. Thanks.

[oscarm.]

Can you be more specific about those who own foreign businesses?

[zaraxuk]

Hi. I have two questions. I live and run my company in UK and have a good salary. Can I apply for residency in Portugal though NHR new regime? Will the salary that I receive in Portugal from UK be tax free for the first ten years?

[cryptaxpt]

The music is a bit to loud. Do you have a podcast as well?

[rhellolayla]

Would I qualify? I am a Psychotherapist.

[allandonovan]

Very informative…. The music was distracting IMHO

[matinmonfared]

How much tax digital nomads should pay for foreign income tax with no DTA? 0? 20% flat or more? 🧐

[stasaleshin]

How NHR 2.0 will work for Digital Nomads?

[p.c.h.]

Hi, I make a living by trading financial products outside of the EU, mainly in the US, such as Options and Futures, so I can move to Portugal and pay 0% capital gains tax? I have a Spanish passport.
Thanks in advance.