Non-Habitual Resident (NHR) regime

On the most recent Tuesday, which was the 14th of the month, a significant debate took place regarding the State Budget for the year 2024. The discussion primarily focused on the non-habitual resident regime. During this debate, the government introduced a proposal outlining a transitional regime aimed at modifying the Non-Habitual Resident (NHR) regime.

The proposed transitional regime extends beyond maintaining the existing regime for individuals already registered under the NHR system, as initially outlined in the 2024 State Budget. It encompasses the following provisions:

i) Eligibility for the transitional regime extends to taxpayers who, by December 31st, 2023, could potentially qualify as tax residents in Portugal (along with their households).

ii) The transitional regime also applies to taxable individuals who attain Portuguese tax residency status by December 31st, 2024. They must declare one of the following criteria for their registration under the NHR:

a) Display a promise or formal contract of employment, or an agreement for a secondment, signed by December 31st, 2023, regarding professional activities in Portugal; or

b) Present a lease agreement or an agreement conferring possession of property in Portugal, executed by October 10th, 2023; or

c) Show evidence of a reservation or promissory contract for the acquisition of a real estate right in Portugal, signed by October 10th, 2023; or

d) Provide proof of enrollment or registration of dependents in a Portuguese educational institution, completed by October 10th, 2023; or

e) Hold a residence visa or a residence permit valid until December 31st, 2023; or

f) Initiate the procedure for obtaining a visa or residence permit in compliance with applicable immigration laws by December 31st, 2023, through: