I In a surprise announcement in early October 2023, the Portuguese government announced the termination of NHR (Non Habitual Resident) which promoted advantageous tax benefits to an individual for a period of ten years. The announcement was received with surprise as it was made without consultation and there were no warning signs that the regime would be subject to change.<\/p>\n\n\n\n
The NHR programme was introduced in 2009 and was enormously successful in attracting a vast number of wealthy foreigners to Portugal who primarily invested in real estate.<\/p>\n\n\n\n
In his justification of the termination of the scheme, Prime Minister Ant\u00f3nio Costa said that the regime was \u201ca measure of fiscal injustice that is no longer justified and is a biased form of inflating the housing market, which has reached unsustainable prices\u201d.<\/p>\n\n\n\n
This announcement caused controversy on first announcement, leading many foreigners, wishing to take advance of the NHR scheme to accelerate their applications and to panic buy.<\/p>\n\n\n\n
Subsequently, the government decreed that they would allow a transition period which will terminate at the end of December 2024. However, applicants must prove that they were already planning a move to Portugal in 2023. This can be demonstrated via a property purchase (completed or in progress), or that a rental lease has been signed, children enrolled into Portuguese schools, or demonstrate proof of employment via a contract. <\/p>\n\n\n\n
Those that are already benefitting from the NHR scheme need not panic. The Prime Minister has stated that those who already have it, can keep it.<\/p>\n\n\n\n
If you were seriously planning to take advantage of Portugal\u2019s NHR scheme, it is absolutely necessary to put your plans into action immediately.<\/p>\n\n\n\n
We can assist in a property search and work with reputable professionals<\/a> who can organise visas<\/a> and give accurate fiscal advice.<\/p>\n\n\n\n