The new Non-Habitual Residency (NHR) tax regime
Portuguese Government announces plan to reintroduce the a new Non-Habitual Residency (NHR) tax regime but with major changes.
In a recent interview with the Financial Times, Portugal's Minister of State and Finance, Joaquim Miranda Sarmento, announced the government's plan to reintroduce the Non-Habitual Residency (NHR) tax regime with significant modifications. The new regime, aimed at attracting skilled professionals, will now focus exclusively on salaries and professional income.
The revamped NHR regime will maintain the same fixed income tax rate of 20% but will apply only to salaries and professional income. Dividends, capital gains, and pensions will no longer be included under this scheme.
This strategic move underscores Portugal's commitment to fostering an environment that attracts skilled talent and supports economic expansion. The new NHR regime reflects a focused effort to bring in professionals who can contribute to the country's growth, ensuring Portugal remains a competitive destination for global talent.