New Transitory NHR Tax Regime

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Recent Portuguese government legislation announced the scrapping of the Non-Habitual Resident tax regime which had allowed tax advantages for 10 years. Introduced in 2009, the scheme was designed to attract wealthy investors and foreigners to Portugal, and it has been highly successful.  Justifying the ending of the scheme, PM António Costa said the NHR regime was “a measure of fiscal injustice that is no longer justified and is a biased form of inflating the housing market, which has reached unsustainable prices”.

However, the government has just decreed that a transition period is required and has launched a ‘transitory NHR tax regime’ for non-habitual residents starting in 2024.

The temporary scheme will allow foreigners to still benefit from the NHR regime until December 31, 2024, so long as they are able to prove they were already planning their move to Portugal in 2023.

This will need to be demonstrated by documentation covering key criteria including proof a property has been purchased or a lease or contract signed, or children enrolled in a Portuguese school – all of which must have already been in place or progressed. Alternatively, proof needs to be shown of an employment offer, an existing valid visa or that an application for a visa has been filed – all by December 31, 2023.

However, there will be no changes for those already benefitting from this regime. As the Prime Minister succinctly put it, “Whoever has it will keep it.”

Considering these changes, anyone wishing to take advantage of the transitory scheme is encouraged to act now to secure their eligibility.

Berkshire Hathaway HomeServices Portugal Property is a multiple award-winning agent and part of one of the world’s most trusted and respected corporations. To find out more about investing in a property in Portugal, contact our team of knowledgeable and professional Property Advisors at or call us on +351 308 800 878 or 0800 014 8201 free from the UK.

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Published in: Guide to Portugal / Miscellaneous / News and Updates / Portuguese Life