The special tax system for Non-Habitual Resident in Portugal (RNH)
This is the special tax status law for citizens who habitually do not reside in Portugal and desire to acquire real estate in our country.
In accordance with the article 16 of the Income Tax Code (CIRS), a subject is considered as a Non-Habitual Resident in Portugal if that person becomes a resident taxpayer in Portugal and has not been deemed resident on Portuguese territory during the five years prior to the year desired to be taxed as a non-habitual resident.
A citizen deemed non-regular resident by the Portuguese tax authorities has the right to be taxed, during a period of 10 consecutive years, according to the special personal income tax regime for NHR. At the end of the 10 years period, the holders of the Non-Habitual Resident status will be taxed according to the general rules of the Portuguese Income Tax Code (CIRS).
In concrete terms, the granting of non-regular resident status allows the person to obtain tax benefits regarding the following types of income:
-Income deriving from employment and self-employment from high added value activities, as listed in the order of the Ministry of Finance;
-Foreign source income from employment and self-employment;
-Income from self-employment obtained through high added value activities obtained abroad;
-Pensions obtained abroad;
-Passive incomes obtained abroad.
For more information, please kindly take note of the annexed documents provided by the Ministry of Finance.