Portugal’s Prime Minister Antonio Costa hinted at the potential end of the Non-Habitual Residency (NHR) tax scheme during a recent CNN Portugal interview, suggesting it “may be phased out by 2024.” Portugal Pathways offers insights, updates, and expert advice for those impacted.
Portugal Pathways NHR Tax Status Analysis, Key Highlights and Considerations for Expats:
Is NHR Ending? The discontinuation of the NHR scheme is probable given the current political trend and the Prime Minister’s past decisions. However, a final decision awaits the conclusion of the legislative procedure.
Timeline for NHR’s Conclusion: The NHR might not end immediately on January 1, 2024. A mid-to-late 2024 cessation is more likely, though an early 2024 discontinuation remains possible.
Potential Modifications: The NHR might not vanish entirely. Past policy reversals, such as with the golden visa program, suggest potential modifications. The scheme’s focus on tax breaks for pension incomes may undergo changes to retain essential benefits.
Current NHR Beneficiaries: Changes to the NHR may not impact current beneficiaries. Prime Minister Costa emphasised that existing statuses would be maintained.
Legal Residents in Portugal: Legal residents without NHR status are advised to apply soon to safeguard against potential alterations.
Non-Legal Residents: It’s crucial to hasten the legal residency process due to uncertainties.
Considering Relocation to Portugal? To potentially benefit from the NHR scheme, swift action is advised.
Planning Ahead is Vital: Portugal Pathways urges everyone, including current NHR beneficiaries, to get timely advice and to plan accordingly for potential changes.
For anyone seeking further clarity on their NHR status or those considering relocation, Portugal Pathways offers NHR newsletter alerts and updates, collaborating with premier professional bodies.
Exclusive NHR Webinar: Portugal Pathways is hosting a webinar on Tuesday 24th October 2023, 10:30am (GMT+1) Lisbon & London time. This event presents an unparalleled opportunity to understand the evolving scenario of the NHR tax regime. Expert panellists will share insights from the ‘Wealthy Expats in Portugal Survey Report 2023’ featuring perspectives of over 1,000 affluent expats.
About Portugal Pathways: Portugal Pathways is dedicated to assisting individuals in optimising their relocation or life strategy in Portugal. Collaborating with leading professional organisations, they provide essential information and advice for prospective and current residents of Portugal