Portugals new tax regime for expats (2024)

2024 is a transitional year for new residents to Portugal in that they have (potentially) three different tax regimes under which they could be taxed.

The Non Habitual Residence regime which started in 2008 has been closed to new entrants from 1st January 2024. However, there exists transitional rules that could still offer the possibility of qualifying under the now defunct regime. Please see article below for further details on this:

https://spectrum-ifa.com/nhr-in-portugal-is-over/

With the closure of the old regime came the introduction of a new regime for those relocating to Portugal. As of yet it has no name so some are calling it NHR 2.0 or the “new Non Habitual Residence” regime.

If you cannot qualify under either of these schemes then you simply enter the standard Portuguese tax system.

In this video we provide a brief overview of the key details.

Timestamps

01:09 Non Habitual Residence
02:00 Benefits of Non Habitual Residence
02:42 Main drawback of Non Habitual Residence
03:18 High valued activities under Non Habitual Residence
04:10 Transitional rules for Non Habitual Residence
04:56 The new tax regime
07:00 Benefits of the new regime
07:50 Exceptions – pension income and income from blacklisted jurisdictions
08:32 Standard Portuguese tax residence

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