Introduction

‍Portugal is poised for a significant shift with the transitional Non-Habitual Resident (NHR) program set for 2024, welcoming foreign citizens under certain criteria.

The Transitional Regime

‍Approved in Mid November 2023, the rule changes allow foreign citizens to enter the NHR regime throughout 2024, provided they meet specific conditions. The Portuguese Socialist Party's proposal extends the NHR benefits, focusing on safeguarding the expectations of those who've started the process of relocating to Portugal.

Eligibility and Requirements

‍To qualify, individuals must obtain tax residency by the end of 2024. Key criteria include:

• Having an employment contract or a promise thereof by the end of 2023.
• A property lease or ownership contract in Portugal until October 2023.
• A reservation or promissory contract for acquiring property rights in Portugal by October 10, 2023.
• Enrollment of dependents in a Portuguese educational establishment.
• Holding a valid residence visa or permit until December 31, 2023, or initiating this process by the same date.

Meeting any one of these conditions makes an individual eligible for the transitional regime.

Extended Transition Timeline

‍Initially planned to end on March 30th, delays in SEF residency processes led to extending the transition period. This extension accommodates those who have already taken concrete steps toward relocating to Portugal, either in terms of employment or residence.

The PS's Justification

‍The PS justifies this measure as a necessity to safeguard the legitimate expectations of citizens who have already taken significant steps to change their tax residence to Portugal, based on the regime set to conclude with the State Budget Law Proposal for 2024.

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With these changes, navigating Portugal's tax landscape requires informed guidance. Porelo is here to help you understand and benefit from the transitional NHR regime. Contact us for expert advice and support as you embark on your journey to Portugal.

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