WWW.ABACUS.GI Expert Wealth Management & Financial Solutions Non-Habitual Resident status PORTUGAL - RESIDENCY SOLUTIONS Version 1 August 2021 PORTUGAL RESIDENCY SOLUTIONSNon-Habitual Resident status Are you and your family approaching that stage in life where you are considering retirement or simply have earned the freedom to make lifestyle choices regarding your future residency? The ideal solution is to be able to combine the lifestyle you have always aspired to, in terms of climate, culture, social activities and leisure with all the ultimate financial benefits of a superior, well-structured residency solution. If you are fortunate enough to qualify for it, this exclusive package can revolutionise your life. Portugal has a multitude of offerings, a stable political and social environment, a labour force that can communicate in English and a high quality of life. This, combined with its membership in the European Union makes it a comfortable and favourable area for investment. Portugal offers competitive tax and investment opportunities for individuals who seek to enhance their tax efficiency. The non-habitual resident regime is a competitive and favourable tax regime that is available to non-resident individuals that have not lived in Portugal for the last five years and that intend to establish themselves in Portugal. This regime, valid for a ten year period, aims to attract highly skilled professionals, high net worth individuals/investors or retirees from any nationality, who may benefit from a favourable taxation of foreign income, with tax exemptions in Portugal and a possible double exemption both in Portugal and in the country where the income is obtained, if a Double Taxation Agreement is in place. In order to qualify for this regime the applicant has to fulfil the following requirements: Not have been taxed as a Portuguese resident in the five years prior to taking up residence in Portugal. Become a tax resident under the Portuguese law for 183 days. Register as a non-habitual resident in Portugal. Kindly note that the non-habitual resident regime does not require the individual to acquire real estate property as the residency may be established by living in an owned property or by living in rented accommodation. Abacus are here to help you determine whether this is the right residency solution for you and to guide you through the process. Through our extended office in the Algarve, managed by our own Portuguese and English speaking manager Anne, we offer you the benefit of a well-established local presence and strong professional partners in Portugal. We provide a set of services that aim to make this procedure as simple and fast as possible for you, such as: The analysis of possible tax benefits that may result from the change of residence to Portugal. Preparation and submission of the formal request of the non-habitual residence tax regime before the Portuguese Tax Authorities. Obtain L egal assistance within the scope of real estate purchase or the execution of the Rental Agreement. Administrative Pack (opening of utilities contracts, e.g. water electricity, telecommunication). Obtain legal assistance for the legalisation of a vehicle from a local lawyer. COSTS FOR NHR APPLICATION One off fee of €500 for application process. Tax report on NHR and individuals circumstances of €750.TAX BENEFITS Tax benefits from foreign source income could be exempt from Portuguese income tax. Examples include dividends, interest, royalties and property rent with pension income taxable at only 10%. Should consultancy fees be a source of income, we can incorporate a Malta company which would incur 5-10% tax only. In addition, the NHR status allows a limited 20% taxation of income from employment and independent personal services (rather than up to 53%). In both cases this income must derive from listed high value added activities, examples being a doctor, a university professor, an auditor or an architect. 01 A Portuguese non-resident tax number needs to be applied for. Signed authorisation needed to permit a third party to apply for this and certified true copies of passport and proof of address required. 02 Rent or purchase a residential property in Portugal (no specific value required). 03 Request a residence permit. Client presence required. 04 Obtain the Certificate of Residence of European Citizen from the local council office. Client presence required. 05 Record this change of address at the Tax office to become registered as Portuguese Tax Resident. Signed authorisation needed to permit a third party to apply for this (as in 1). 06 Register on the Tax authority web site (Portal das Financas) to receive a password to allow future access to this site. The password will be sent to the Portuguese residence address. 07 On receipt of this password the application can be made for NHR status. This will be processed by Abacus. Additional information may be requested and will need to be sent in the mail. 08 Confirmation is normally received in 10 days. PROCEDURE FOR NHR APPLICATION WWW.ABACUS.GIThe Abacus Group 5-9 Main Street, Gibraltar GX11 1AA T: +350 200 78777 E: contactus@abacus.gi Contact Us Philip Cartwright Senior Manager / BA (Hons) TEP - CII Pension Admin philip.cartwright@abacus.gi GIBRALTAR Anne Darlington Business Development Director, Portugal anne.darlington@abacus.gi PORTUGAL TRUSTED TO DELIVER VALUE Expert Wealth Management & Financial Solutions Please note that the information in this document is intended for information purposes only and no reliance should be placed on it without specific legal, tax or financial advice. Every reasonable effort is made to ensure the information is accurate and up to date. Abacus Financial Services Limited will accept no responsibility for its accuracy and correctness. Abacus Financial Services Limited or its related group of companies do not provide financial, tax, or legal advice and it is your responsibility to procure this independently. Abacus Wealth Management Limited does provide financial advice and is authorised under the Gibraltar Financial Services Commission under separate licence. Abacus Financial Services Limited is authorised by the Gibraltar Financial Services Commission Permission No. 1275 ABACUS FINANCIAL SERVICES LIMITED. WWW.ABACUS.GIWWW.ABACUS.GI TRUSTS · COMPANY MANAGEMENT · FUNDS · PENSIONS · WEALTH MANAGEMENT · RESIDENCY SOLUTIONS · ACCOUNTINGNext >