The Non-Habitual Residents (NHR) Tax regime - Update
The NHR regime has concluded, ushering in a new expats regime. Take note of the Tax Incentive for Scientific Research and Innovation (TISRI) as part of these changes.
What are the tax benefits of TISRI?
▪ Taxation on net income from categories A (dependent work) and B (business or professional activities) at the special rate of 20%
▪ Tax exemption on most foreign income, including income from capital, property, and capital gains.
▪ Foreign pensions will be taxed exclusively in Portugal at the standard progressive rates (14,5% to 53%)
Who is it for?
▪ For highly qualified workers in specific professional categories who become tax residents in Portugal from 2024 onwards, provided that:
i. In the last five years they have not been tax residents in Portugal and,
ii. They have not benefited from the Non-Habitual Resident (NHR) regime.
Which professional categories are covered by the scheme?
▪ Professionals in teaching careers in higher education and scientific research, integrated into the national science and technology system
▪ Workers or members of corporate bodies within the scope of contractual benefits for productive investment
▪ Highly qualified professions developed in:
i. Companies that benefit or have benefited from the investment support tax regime (RFAI),
ii. Industrial and service companies that export, or have exported, at least 50% of their turnover
▪ Research and development staff whose costs are eligible for the tax incentive system for research and business development
▪ Workers or members of governing bodies in entities certified as startups
▪ Jobs or other activities carried out by tax residents in the Autonomous Regions of the Azores and Madeira, under terms yet to be defined by regional legislative decree
Timeframe:
▪ A period of 10 consecutive years starting from the year of becoming a tax resident in Portugal.
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