Government launches ‘transitory NHR tax regime' in 2024; proof that move to Portugal was being planned in 2023 must be presented
The Portuguese government has announced the launch of a ‘transitory NHR tax regime' for non-habitual residents in 2024.
This temporary scheme will allow foreigners to still benefit from the NHR regime (which was to be scrapped starting in 2024) until December 31, 2024, so long as they are able to prove they were already planning their move to Portugal in 2023 (i.e., documents proving that a property has been purchased, that a residence visa has been requested or that children have been enrolled in a Portuguese school).
This ‘transitory regime' has been created following an amendment to the State Budget (OE) proposal for 2024 presented on Tuesday in Parliament by the Socialist Party (PS).
According to the government's official statement, there are six ways to benefit from the transitory regime:
Promise of employment or work contract, or promise or secondment agreement celebrated until December 31, 2023, with work duties having to be performed in national territory;
Lease contract or another contract granting the use or possession of property in Portuguese territory concluded until October 10, 2023;
Reservation contract or promissory purchase contract with rights over property (contrato-promessa de aquisição de direito real sobre imóvel) in Portuguese territory concluded until October 10, 2023;
Enrolment or registration of dependants in an educational institution located in Portuguese territory, completed until October 10, 2023;
Residence visa or residence permit valid until December 31, 2023;
Procedure initiated with the competent authorities for the granting of a residence visa or residence permit, until December 31, 2023.