Portugal’s NHR Tax Regime Deadline Sparks Digital Nomad Influx
The government of Portugal recently announced that starting in 2024, it plans to abolish the NHS tax regime, which gives foreigners the opportunity to benefit from reduced tax rates on income for a period of ten years,AtoZSerwisPlus.pt reports.
The decision was initiated with the aim of helping improve the housing market in the country.
While announcing the new changes, Portugal’s Prime Minister, Antonio Costa, considered that the non-habitual residents (NHR) is a measure of fiscal injustice and its maintenance is no longer justified after it has served its purpose and will only contribute to increasing housing prices, according to the Portugal News.
“In 2024, special taxation for non-habitual residents will end. Whoever has it will keep it,” Antonio Costa.
However, the PM clarified that internationals already in the country who have this tax advantage will be eligible to benefit from it for the duration of their 10-year term.
According to the consulting firm Portugal Pathways, new applicants are required to submit their request by December 31, 2023, and also complete their application or approval by March 31, 2024.
Local media have reported that this deadline triggered a new influx of remote work lovers who want to take advantage of this tax scheme while it is still available.
Among the main benefits brought from the NHR scheme is the opportunity to be excluded from income tax on certain types of foreign income for ten years, taking into account pensions, dividends, and royalties.
Furthermore, the potential for double tax relief is another benefit that attracts internationals interested in the NHR program.
Still, Portugal will introduce an NHR tax regime alternative for scientific research and innovation starting next year, permitting various professions to benefit from a ten-year income tax reduction.
Portugal is among the favourite countries for digital nomads, especially its capital, bringing each year a large number of internationals planning to live and work in this country.
The government’s decision to put an end to these tax schemes came amid concerns over the increasing cost of living and real estate prices in Portugal. Similar reasons led the country to also apply changes to its Residency by Investment scheme, known as the Golden Visa.
Recently, as part of the “More Housing” program, the President of Portugal, Marcelo Rebelo de Sousa, approved new changes to the Golden Visa Program, which, among others, included the abolishment of the real estate options from this scheme.
For the Employer
Are you looking to Hire? Let us help you find the perfect candidates!
Step 1: Fill out the employer's questionnaire. Please provide us with the necessary details about your job requirements and company. We'll use this information to customise our services for you. Fill in the form.
Step 2: Choose the best offer. Once we receive your completed questionnaire, we'll prepare a tailored proposal for recruitment, employee leasing, or outsourcing services.
Step 3: Welcome your new employee. We'll utilise our extensive network and resources to find the ideal candidate for your business. Please don't worry; we'll ensure favourable conditions for you and the employee.
Take advantage of exceptional talent for your company. Complete the employer's questionnaire today, and let us handle your hiring needs.
For Job Seeker Registration
If you are looking for Truck Drivers, such as our guest today, we would like you to fill out the application form on our website. After reviewing the details of the completed offer, a representative of AtoZ Serwis Plus will contact you and tell you about all the details. Fill in the form.
Would you like some advice? So that you know, the information I've included here is for you to review. You'll always need to consult with your legal and tax advisor(s) and follow their guidance. AtoZ Serwis Plus cannot assist with legal or tax matters. The information presented is not specific to any particular company or workforce nor reflects how AtoZ Serwis Plus products are distributed in any jurisdiction. Instead, it is general. AtoZ Serwis Plus makes no representations or warranties regarding this information's accuracy, completeness, or timeliness. It shall not be liable for any losses from using or relying on it. It is your responsibility to exercise caution when using this information.
