Portugal residency news - These are the tax changes for foreigners in Portugal in 2024 and the answers to the following questions: What does the end of Portugal’s Non-Habitual Residency (NHR) regime mean for foreigners residing in Portugal? What is the tax break for foreigners who want to obtain Portuguese residency under the Science & Technology R&D regime?
1 – What does the end of Portugal’s Non-Habitual Residency (NHR) regime mean for foreigners residing in Portugal?
Portugal’s non-habitual residency (NHR) regime ends on December 31st, 2023, however it will still be applicable for foreigners who are already registered as NHR by then and for those who have obtained a residency visa by that date.
For foreigners who have obtained a residency visa by December 31st, 2023, they have up to March 31st, 2024, to finalize their registration as a non-habitual resident under the NHR regime. The NHR tax regime allows foreigners to be registered as tax residents with the benefits of a 10-year tax break on foreign-sourced income.
2 – What is the tax break for foreigners who want to obtain Portuguese residency under the Science & Technology R&D regime?
Portugal has introduced a new tax break for foreigners who want to obtain residency under the Science and Technology R&D regime. This new tax regime is available for foreigners who are not tax residents and who have not lived in Portugal during the previous 5 years.
Portugal’s tax break for scientific research and innovation comes under the national science and technology program. The list of positions under this program is available under Chapter II and Article 37 of the Investment Tax Code (Código Fiscal do Investimento). The program aims at attracting foreigners who are involved in R&D and who hold a PhD. Foreigners who wish to benefit from Portugal’s Science & Technology tax regime need to apply through the FCT - Fundação para a Ciência e a Tecnologia for individuals, or through AICEP Portugal Global, and through ANI - Agência Nacional de Inovação if they wish to invest.
The tax benefits under Portugal’s Science & Technology tax regime include a flat rate of tax of 20% for individuals for a period of 10 years as well as a tax exemption on all foreign-sourced income up to a specific threshold with more details yet to be published by the Government.
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