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Good News! Reintroduction of NHR – Non-Habitual Resident Regime

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Government’s Economic Boost Package

In a bold move to stimulate economic growth, the Portuguese government has unveiled a comprehensive package of measures aimed at boosting the national economy. These measures cover various sectors and are designed to drive investment, support businesses, and create jobs. However, many of these measures will require approval from the Parliament before they can be implemented.

Reintroduction of the Non-Habitual Resident (NHR) Regime
In a significant development for expatriates and potential immigrants, the government has announced the reintroduction of the Non-Habitual Resident (NHR) regime through a “Portaria,” a type of law that does not require parliamentary validation.  This streamlined process ensures a quicker implementation of the new rules.

The revised NHR regime, which will be published soon, brings several key changes:

  • Active Income Focus: The NHR regime will now apply exclusively to active income, including both subordinate (employment) and independent (freelance or self-employed) work.
  • ⁠Exclusion of Passive Income: Passive income sources such as dividends, interest, and pensions will no longer be eligible under the NHR regime.
  • Tax Cap: There will be a tax limit of 20% on qualifying active income, the same as the previous regime.
  • Residency Requirement: To qualify, foreign citizens must not have resided in Portugal during the past five years. 

These changes aim to attract skilled professionals and entrepreneurs to Portugal, thereby boosting the local economy through increased productivity and innovation.

These are good news for everyone considering to move to Portugal or get the Portuguese residency / citizenship through the Portugal Golden Visa program.  But it will benefit D8 Digital Nomad and work contract applicants (and even D7 applicants if they intent to work in Portugal) the most, as their employment income will enjoy a more favorable tax rate.

We will keep you posted on any related news.

References:

https://www.rtp.pt/noticias/economia/regime-fiscal-dos-residentes-nao-habituais-regressa-com-portaria-do-governo_n1583793

https://sicnoticias.pt/pais/2024-07-04-governo-aprova-mega-pacote-de-medidas-de-apoio-as-empresas-e-economia-b96112

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