Portugal has an attractive tax legislation for people with high incomes who wish to become non-habitual residents in Portugal, benefiting from a favourable taxation of income abroad, with the exemption from taxation in Portugal (direct family members included) and a possible double exemption both in Portugal and in the country where the income is paid if a double taxation agreement is in effect. This program was launched for foreigners and Portuguese citizens come to settle in Portugal after a period of at least five years abroad.

With this non-habitual residence scheme, Portugal becomes a tax-free jurisdiction to those receiving pension income. Foreign who declare a rent in Portugal may also benefit from this preferential treatment, with business and professional income. This attractive program also covers income from high value-added activities, benefiting from a special tax rate of 20%. This scheme can be maintained, minimum for 10 years.

Should be regarded as residents of Portuguese territory, any person who, in the year of declared income:

  • Stay in Portugal more than 183 days, with or without interruption;
  • Having stayed in Portugal less than 183 days, having at own disposal the 31 December of that same year, an accommodation such that it may be inferred that there is no intention to maintain and occupy as habitual residence;
  • Being a member of a family unit, since the 31 December of the year in which the income relates, one element of this family unit is considered a resident for tax purposes in Portugal.