NHR UPDATE: The Next Tax Scheme For Expats Moving To Portugal

If you're considering moving to Portugal as an expat, you may have heard that the Non-Habitual Residency (NHR) tax scheme is no longer available. In this latest vlog as a retired couple living in Portugal, an NHR update, we discuss the new tax scheme for expats moving to Portugal, and how it may affect you. Don't miss out on important information for your retirement or move to Portugal!

00:00 - NHR Gone: What's Next For Expats Moving to Portugal
00:34 - What is NHR Tax Scheme? Is There Still Hope For Expats?
02:19 - The NHR Timeline for 2024 When Moving To Portugal
03:24 - 7 Ways Expats Still Qualify for NHR Moving To Portugal in 2024
06:01 - Madeira, And New Tax Scheme for Expats Moving To Portugal
07:24 - Why Tax Incentives Like NHR Are Important For Expats AND Portugal
08:24 - Why It's Still A Good Idea to Move To Portugal or Retire in Portugal

Thanks for watching! Don't forget to like, subscribe, and share our channel with fellow adventurers seeking to create their own 'Better Second Half of Life!'"
All the best! D & M 🌎❤️

DON'T BUY A PHYSICAL SIM CARD WHEN TRAVELING! Use an e-Sim - it's easier and cheaper. Here is a referral code to use to sign up for AIRALO e-SIM, the easiest and best e-SIM available. You get $3 off your first purchase: DOUGLA4412

#NHRUpdate #PortugalTaxes #FreshPortugal

[timothysellers]

Hi guys. Have been watching your channel for several years since I started investigating Portugal as a retirement destination. Took my wife and (grown) children for a visit at the end of 2022 and we all fell in love with it. Was planning to move there at the end of this year until the announcement about the NHR last October. Although you’re absolutely right about the many advantages Portugal offers, there’s no getting around the devastating impact that the loss of the NHR has on taxes for retirees. Going from 10% to 48% tax on almost all retirement income is an obstacle I’d be surprised any retiree can overcome. Our current destination is France. Although not as attractive as Portugal in several ways, from a retiree tax standpoint, it is better than Portugal (even with the NHR). Living in France with regular visits to Portugal is an alternative I’m really looking forward to.

[rodgreaves]

My spouse and I applied for an appointment for a visa on December 17, 2023. We finally got our appointment for March 14, 2024, which we both attended, at VHS Global office, the intermediary that assists the Portugal Consulate in San Francisco, . Do you think we meet the criteria for NHR? We were not sure but hopeful. We love your channel and watch it regularly. Its a great service for others considering moving.

[maximsavard]

Yay! I'm in one of those categories! Thank you super helpful! 😊

[ruinunes]

We like the garden furniture. We hope you guys are well. All the best from us.

[johnh]

Excellent and informative update. We are retired Canadians with pension sources similar to your professions. Did you find that the CRA (Canada's tax authority) withheld 15% of your Canadian pensions, per the Tax Treaty between Canada and Portugal?

[Sabhail_ar_n-Alba]

The retirement taxes would be about 3 x higher w/out the NHR so I think Cyprus or Malta might be better financially.

[thomashawker]

Thanks again D&M for another great video! Yes, we qualify for the NHR because of a signed promissory contract prior to October 10, 2023. We have received the final habitation license and will be signing the final deed (our lawyer will be signing on our behalf) in about 2-3 weeks. All good news on the property part. However, the NHR has become a road block for us at this time. Why? Because I was still planning on working through the end of 2025, and in order to qualify for the NHR, I would have to receive passive income (at least three months worth) in 2024 and go through the D7 process. Otherwise, we would certainly pay the 48% progressive tax rate in Portugal and that is not an option for us. So our two options are 1) Retire one year early to qualify for the NHR or 2) forget about the NHR and come over in 2026 on the D7 visa and pay the progressive tax rate. There is a third option and I want to share it with you and your viewers, "THE SCHENGEN SHUFFLE", live and visit Portugal 90 days at a time. For example; spend March, April and May in Portugal, leave for 90 days and go to a NON-SCHNEGEN country either in the E.U. or somewhere else in the world, then come back to Portugal in September, October and November. Take a little bit of work and travel planning, however, the money we would save in taxes would not only pay for these travels, but would allow us to keep more of our monies. The best of slow travel, and living what D&M call, our second half life and living abroad.

[jacinthmanning]

Hey Monique and Doug fellow Canadian here, my husband and I got our residence visa in 2022 and still on the fence to come over because of the steep rise in rent etc. We are coming to Lisbon in April and hope to get over to Madeira. Been to many of the bigger cities on the mainland and we were in the Algarve for 3 weeks last year. Love your videos

[WrldExplorer]

I was planning to move there this year, but I end up meeting my future partner who is from Colombia. 🇨🇴 Due to the high price of accommodations there, I thought it would be a good idea to move to Colombia, take advantage of our no mortgage there, and start saving up for a down payment on a condo in Portugal 🇵🇹 to keep our monthly price lower wherever we decide to live. We both agreed that Colombia is not going to be our permanent home. I do want to feel comfortable walking around looking at my cell phone without worry about getting robbed. So for now it will be a temporary inconvenience. I am already in a Visa process and hoping to be there in June, and hopefully Portugal in two years depending on changes they make before then.

[MrSil]

Would you mind sharing the lawyer contact? And how do you keep up to date with the NHR news (related to Madeira)?

[Pauln]

I have read that if you are receiving a government derived pension, worked for federal, state or local government in the United States you don't pay Portuguese income tax because of a treaty between the United States and Portugal

[chrismedeiros]

We have to keep up hope for pensioners! Perhaps Madeira and the Azores will do something to make it more attractive to pensioners. Maybe less attractive to those simply trying to profit off the real estate with no real interest in Madeira or the Azores otherwise. Thanks for sharing this video and keeping your ears to the ground for future developments!

[explorarehoy]

Can you make a video for the tax incentive for research scientist? As I understand the tax incentive will 20% not 10% as the NHR. so it is not as desirable a program Thanks

[principalsirmsyadav]

I am thinking of applying for a D7 visa, is it still worth it on the D7 visa. Should We move to Germany on a family reunion Visa. I am retiring in December 25

[alexsumbati]

Thank you for your explanation of the new Tax Set Up in Portugal.
This is not the only country that is moving the Goalpost, some countries in South East Asia are also changing the rules. In the last few years there’s been a lot of talk about Retiring Overseas as it is much-cheaper living in certain countries around the world. Many people have taken the bait, sold everything in their home country and settled in the new one under favorable conditions. A few years down the track, a change of government, better economic conditions and “ SORRY WE DON’T NEED YOU ANYMORE “ attitude.
WE’RE GOING CHANGE THE RULES, BECAUSE WE CAN.


How can that be fair to anyone especially to PENSIONED RETIREES?
In one of the comments, someone mentioned the Tax going from 10 to 48%.
How is that sustainable! These pensioners have sold everything in their homeland, so what’s going to happen to them if they can no longer afford living in their new country? OUT IN THE STREET BEGGING?
I can see this RETIRING OVERSEAS because it’s cheaper, becoming a bit of a trap down the line which could become a DILEMMA/ NIGHTMARE for some people.

[MoveOrInvest]

I really like that outdoor patio furniture 🙂

[juanhernandez-zeei]

Hi Monique and Doug, my wife and me started the process of citizenship by family descendant in 2022 and will be granted in 2024, does the NHR applies to us?

[eddy_creative]

I spoke to someone and they said because i leased a property in portugal in late 2022/early 2023, i'd be ok to still register for this?

[gailalbers]

what is it like for europeans moving to Portugal ?

[siugorman]

Hi is the job software architect /engineer qualified for the new regime