The End of the Non Habitual Resident (NHR)

When is NHR ending exactly?

As per the State Budget Proposal (presented in Parliament by the Government on October 10th 2023 and approved on November 27th 2023), here is what we now know about the termination of the NHR status program:

• Taxpayers that already hold NHR status will indeed keep the status and its benefits until the end of the 10 year period of the program;

• Taxpayers that became (or will become) tax residents in Portugal until 31.12.2023 will also still be eligible for NHR;

• Taxpayers that become tax residents in Portugal until 31.12.2024  and meet one of the following requirements:

1. Hold an employment agreement (or promissory agreement) signed until 31.12.2023 to render work in Portuguese territory;
2. Hold a lease agreement or other agreement that allows the use of a residence in the Portuguese territory signed until 10.10.2023;
3. Holds a promissory agreement to buy a property in Portugal signed until 10.10.2023;
4. Has enrolled children in an educational establishment completed by 10.10.2023;
5. Holds a residence visa or residence permit valid until 31.12.2023;
6. Has initiated until 31.12.2023 a procedure for the granting of a residence visa or residence permit, with the competent authorities, in accordance with applicable immigration legislation, namely requesting an appointment or actually making an appointment to submit the application for a residence visa or residence permit, or by submitting an application for a residence visa or residence permit;
7. Is a member of the household of a person that meets one of the aforementioned requirements

• Taxpayers that only become tax residents in Portugal after 01.01.2024 and do not meet one of the requirements described above will not get NHR.

Is this really the end? 

Yes, the Proposal has been formally approved by Parliament.

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