The recent repeal of Portugal’s Non-Habitual Resident (NHR) regime through the 2024 State Budget Law might leave many wondering about its current status. Has the regime truly ended? Let’s clarify what has changed and who can still take advantage of this tax scheme.
The NHR regime hasn’t completely disappeared. While certain regulations have been revoked, transitional provisions have been introduced to safeguard existing beneficiaries and enable others to continue benefiting from it until the conclusion of 2024.
So, who exactly can still reap the benefits of the NHR scheme?
- Existing Beneficiaries: Individuals who were already registered as Non-Habitual Residents before the repeal of the regulations will continue to enjoy the scheme until its expiry, typically set at 10 years.
- Those Becoming Tax Residents by December 31, 2023: Individuals who establish tax residency by the end of 2023 are still eligible to benefit from the scheme. They must spend a minimum of 183 days per year in Portugal to qualify.
- Those Becoming Tax Residents by December 31, 2024:Despite the legislative changes, individuals can still access the NHR if they become tax residents by the end of 2024. Similarly, they need to meet the requirement of spending at least 183 days per year in Portugal or demonstrate a genuine intention to habitually reside in Portugal through other means, such as holding a residential property in the country. Additional specific prerequisites include having an employment contract, rental agreement, or enrolling dependents in an educational institution.
- Household Members of NHR Beneficiaries: Individuals residing in the same household as someone benefiting from the NHR regime can also avail themselves of its advantages.
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