The NHR (Non-Habitual Resident) tax programtruly terminated ??
Stirring public debate has surrounded the speculation that the NHR (Non-Habitual Resident) tax policy would be eliminated after 2023. What is the truth behind this matter, and what is the current status of NHR? Stay updated on crucial information with Interimm below.
NHR is a special regime designed for non-regular resident individuals in Portugal, helping these residents alleviate tax burdens. NHR has had significant implications for immigration to Portugal, as within just the first 10 years of its application, 59% of individuals chose to stay and settle, even though they no longer enjoyed the benefits of this policy afterward.
In addition, Portugal’s Non-Habitual Residency (NHR) regime also allows foreign retirees to enjoy a 0% tax rate if they meet certain conditions. This special advantage of NHR has attracted over 9,000 retirees to settle in Portugal.
In an interview with CNN last October, Portuguese Prime Minister Antonio Costa stated, “Continuing the application of the NHR policy (since 2009) has caused a certain housing market inflation in Portugal; maintaining this regime needs to be reconsidered.” NHR is facing the risk of permanent elimination following this proposal from the Prime Minister.
Abolishing the NHR policy would increase the applicable tax for non-regular resident retirees from 0% to 10%. This could reduce the attractiveness of the NHR scheme, as Portugal would have to compete with other EU countries offering lower tax rates.
“The proposal to abolish NHR” was rejected after the resignation of the Prime Minister of Portugal??
According to Imidaily, the resignation of Portuguese Prime Minister Antonio Costa in early November had an immediate impact on the previously proposed removal of the Non-Habitual Residency (NHR) tax regime. As a result, NHR will continue to operate at least until the end of 2024, providing an advantage for residents moving to Portugal.
Although the future of the NHR tax policy remains unpredictable, all signs indicate that it remains advantageous for investors in the fields of scientific research and innovation. This aligns with the new laws that Portugal passed in October, affirming Portugal’s position on the global forefront of technology and innovation, areas that have seen consistent growth over the past decade.
The latest news will continue to be updated continuously; follow Interimm to stay informed about valuable information regarding the Portuguese residency investment program..
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