You can STILL apply for Non Habitual Residence (2024)
IMPORTANT - PLEASE READ REGARDING THIS CHANNEL
The content on this channel is for educational and information purposes only. It should not be relied on as advice, and you should always take qualified advice before making any changes to your personal position.
Whilst I have experience in the financial and tax industry, this channel is for recreational purposes and is not an advertisement for my business or services. Its purpose is to share quality information.
Whilst every care is taken as to the accuracy of the information in these videos, the information provided is based on the understanding of the rules at the time, and rules can change with little or no notice.
Whilst I cover a wide range of issues on the channel, in my professional role I specialise in tax efficient investments, UK and overseas pensions, estate planning, and wealth management for expatriates based in Portugal. Unfortunately, I do not offer visa or tax return services, nor can I assist US nationals.
Thank you for your support and understanding. I hope to continue to provide you with valuable information to help you with your life in Portugal. If you have any suggestions for content you would like to hear, please let me know
What has happened?
In my last video, I explained that there were proposals to cancel the NHR scheme within effect from 1st January. We were hoping the proposal would be amended or at least watered down in parliament but unfortunately they weren’t. Therefore, the NHR scheme is cancelled for new applicants with effect from start of 2024.
The good news
1. Existing Non Habitual Residents are unaffected
2. There is a transitional regime for 2024 so in certain situations you can still qualify for NHR in 2024
3. A new tax incentive program has been introduced which, at the current time, has no name (some have called it “NHR 2.0”)
Existing NHR individuals
Those with NHR already will continue to benefit from the scheme until the end of their 10 year period.
Just be cognisant of the planning you can be putting in place now to put yourself in the best position possible so that you will be in a tax efficient position post the end of NHR.
Please see our article below for more details:
spectrum-ifa.com/preparing-fo...
Residency obtained after 1st January 2024
Those who obtain Portuguese residence after 1st January 2024 will not be able to apply for the NHR scheme unless you meet one of the transitional criteria below.
Transitional rules: applications open until 31st December 2024
Those who become resident in 2024 may still be able to apply for NHR if certain conditions are met. These are individuals with:
• A promise of employment or secondment, or a work contract before 31st December 2023 and where the work is performed in Portugal
• A contract in respect of purchase, lease or use of property in Portugal concluded before 10th October 2023
• A reservation or promissory contract over a property in Portugal before 10th October 2023 i.e. a `contrato-promessa de aquisição de direito real sobre imóvel`
• Enrolment or registration of dependants in education within Portugal before 10th October 2023
• A residence permit or visa obtained prior to 31st December 2023
• A residence or visa process registered with the relevant authority before 31st December 2023
Those who cannot claim NHR status will be subject to the standard rates of Portuguese tax.
A practical point on the granting of NHR - it used to be the accepted principle that you needed to have your FULL residency before applying for NHR. But in practice we’re seeing clients successfully applying for NHR with just the first stage permit in place. It seems that it very much depends on the interpretation of each local tax authority.
A new tax regime……NHR 2.0?
There is a new 10 year scheme introduced as a result of the 2024 Budget Law that offers benefits to select individuals. This is aimed at attracting those involved in the scientific research and innovation fields and will apply to those with roles in higher education and specific high value sectors.
We will be doing a separate video on this over the next few weeks with more details and some planning angles, so please subscribe to the channel if you want to be kept up to date on this.
Final words
It is expected that there will a high volume of applications for NHR and for embassy appointments so if you can, take action now.
Even if you do not qualify for NHR or NHR 2.0, Portugal can still be a very tax efficient place to live however more careful planning will be needed both before and after your move.
Пікірлер: 24
IMPORTANT - PLEASE READ REGARDING THIS CHANNEL The content on this channel is for educational and information purposes only. It should not be relied on as advice, and you should always take qualified advice before making any changes to your personal position. Whilst I have experience in the financial and tax industry, this channel is for recreational purposes and is not an advertisement for my business or services. Its purpose is to share quality information. Whilst every care is taken as to the accuracy of the information in these videos, the information provided is based on the understanding of the rules at the time, and rules can change with little or no notice. Whilst I cover a wide range of issues on the channel, in my professional role I specialise in tax efficient investments, UK and overseas pensions, estate planning, and wealth management for expatriates based in Portugal. Unfortunately, I do not offer visa or tax return services, nor can I assist US nationals. *Thank you for your support and understanding. I hope to continue to provide you with valuable information to help you with your life in Portugal. If you have any suggestions for content you would like to hear, please let me know*
Got a mate that moved in december 23 and applied in april 24 and got approved
As always, your videos are packed with great information. I would be very interested in a video that addresses moving to Portugal on a D7 visa in at post-NHR world. Thanks for all you do, Mark!
@taxfinancialadviceinportug4745
6 ай бұрын
Thank you Karen. I will be doing exactly that very soon :-) Best wishes. Mark
Good information but very hard to hear due to bad audio. Please use a mic!
@taxfinancialadviceinportug4745
4 ай бұрын
Thank you and sorry about the audio quality - I actually bought a mic but probably need to upgrade! The acoustics of Portuguese buildings don't help either with the lack of insulation, tiled floors etc. However, noted and will try and improve. All the best. Mark
Just sent you an email Mark, hoping we can chat soon about my situation!
@taxfinancialadviceinportug4745
2 ай бұрын
Thank you - will reply asap
Got my visa in December and moved to Aveiro PT in december. Second appointment isn't until April. Can I get NHR still?
@taxfinancialadviceinportug4745
5 ай бұрын
It appears you meet the transitional rules. I would speak with a local Accountant as soon as possible who can verify. Good luck and best wishes. Mark
Hi Mark, great video as always. I am still (after 7 months) awaiting my residency appointment, however I have a work contract, and I have also managed to successfully change my address to my Portuguese with AT (Autoridade Tributária e aduaneira), so their document states I no longer reside in the UK but here in Portugal... Will it be okay in this situation to now apply for NHR?
@taks1990
6 ай бұрын
Thanks Pat. There is no guarantee but it seems that you should qualify. I would speak with a local Accountant asap to commence the NHR application. Good luck and hope all works our for you
@PatShannahan
5 ай бұрын
@@taks1990 All worked out! Do you know the best way of getting a refund on tax paid in the previous fiscal year or does it only apply once you have the status? Thanks :)
@taxfinancialadviceinportug4745
5 ай бұрын
Hi Pat. Good news and congrats! It isn't my area to be honest, as I don't submit tax returns - I would speak with a local Accountant who will be able to guide you on this. Best wishes, Mark
Hello, what about rental income from another country in Europe? If you become tax resident in Portugal after 2024 are you tax subject on those? I cant find info online. Thanks
@taxfinancialadviceinportug4745
6 ай бұрын
Under NHR there is no tax payable on rental income in Portugal if the income is subject to tax in the country the property is located. If there is no tax payable in the country of the property, then it is subject to tax in Portugal. Post NHR it will always be subject to tax in Portugal, with a credit for any tax paid in the country of location. Kind regards. Mark
@andreasbakatsias9743
6 ай бұрын
thanks for replying. If i become resident in Portugal, can my income remain taxable in Germany which is the location of the property?@@taxfinancialadviceinportug4745
For people that qualify for the transitional phase of applying for the NHR..what month in 2024 shd we apply for the NHR..is there a submission deadline date or you can apply any time in 2024
@taks1990
6 ай бұрын
Hi. I would start the application process immediately. The only deadline was the 31st of March FOLLOWING the year you obtained residency but I believe for those qualifying under the transitional rules you have until the end of 2024. However, as I say, to safeguard your position I would still try and get in before 31st March. Good luck and hope all goes well
Very informative video. I qualify (at least on paper) for NHR under the transitional exemptions that you explained, however my lawyer informed me that recently many applications that meet these requirements are being rejected. My question is if I apply for NHR & get rejected will the Portuguese authorities automatically expect me to become tax resident in Portugal under the standard taxation scheme or can I just keep my existing tax residency in my home country?
@taxfinancialadviceinportug4745
5 ай бұрын
Hi bgdriver. Thank you for your comment. If you're spending more than 182 days here in any 12 month period OR your main home is here, than you would be considered a tax resident and have to pay taxes in Portugal.
@bgdriver4528
5 ай бұрын
@@taxfinancialadviceinportug4745 Thanks a lot.
Hi, do you do personal assessments?
@taxfinancialadviceinportug4745
6 ай бұрын
Yes we do :-) mark.quinn@spectrum-ifa.com