TRANSITIONAL REGIME. NON-HABITUAL RESIDENT.

INSTALEGAL - TAX

1. The State Budget for 2024, approved on November 29, 2023, provides for the elimination of the tax regime for non-habitual residents, as of December 31, 2023.

2. However, a transitional regime was approved, that allows the expectations of people who, in 2023, had already made the decision to come and live in Portugal in 2024, to be met..

3. According to this transitional regime, the tax regime for non-habitual residents applies to taxpayers who become residents for tax purposes by 31 December 2024, and who declare, for the purposes of registering as non-habitual residents, to have one of the following elements:

i. Promise of or employment contract, promise of or secondment agreement signed by December 31, 2023, whose duties must be carried out within national territory; or

ii. Lease contract or other contract that grants the use or possession of property in Portuguese territory concluded until October 10, 2023; or

iii. Reservation contract or promissory contract for the acquisition of real estate rights  over property in Portuguese territory concluded by October 10, 2023; or

iv. Enrollment or registration for dependents at an educational establishment domiciled in Portuguese territory, completed by October 10, 2023; or

v. Residence visa or residence permit valid until December 31, 2023; or

vi. Procedure, initiated by December 31, 2023, for granting a residence visa or residence

      permit, with the competent entities, namely through the request for scheduling or

      actual scheduling for submission of the request for granting the residence visa or

      authorization of residence or, even, by submitting an application for the granting of

      a residence visa or residence permit.

4. For tax purposes, the following are considered residents in Portugal:

i. anyone who stays in Portugal for more than 183 days per year, consecutive or interpolated; or

ii. whoever, having stayed less than 183 days, has housing in Portugal in conditions that suggest a current intention to maintain and occupy it as a habitual residence.

These criteria can be met either by purchasing or leasing a house in Portugal.

5. In practical terms, as long as the taxpayer (i) has one of the elements referred to in point 3 above, (ii) registers as a resident in Portuguese territory by December 31, 2024, and (iii) requests his registration as a non-habitual resident through the Finance Portal until 03/31/2025, may benefit from the non-habitual resident regime.

This newsletter is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document. If you have any questions regarding this newsletter, please contact BRAM.

INSTALegal BRAM - Dec 2023 - TAX_EN

.pdf

Download PDF • 483KB

A EQUIPA BRAM

PAULO COURELA

ASSOCIATE

ptc@bramlegal.pt

Associate Lawyer at BRAM, with over 20 years' experience in Tax Law.

Began his career as a Tax Administration Technician, assistant to the DGCI between 1999 and 2004.

Trainee at the law firm José Maria Calheiros e Associados, where remained as a lawyer until 2022.

Postgraduate in Tax Management at ISCTE Overgest.

FREDERICO STEHLIN

ASSOCIATE

fs@bramlegal.pt

Member of BRAM´s team since 2020, having started his professional career at the AMBA law firm.

Master's degree in Forensic Law and Arbitration from the Faculty of Law, Universidade Nova de Lisboa.

Postgraduate degree in Commercial Company Law at the Lisbon Faculty of Law of the Portuguese Catholic University.

BRAGA DA COSTA, AFRA ROSA, MEXIA, REYNOLDS, MALTA VACAS & ASSOCIADOS, SOCIEDADE DE ADVOGADOS, SP, RL

Avenida 5 de Outubro, n.º 85, 5º andar, 1050-050 Lisboa | Tel. (+351) 210 734 790 Fax: (+351) 210 131 576

 geral@bramlegal.pt | bramlegal.pt