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The content on this channel is for educational and information purposes only. It should not be relied on as advice, and you should always take qualified advice before making any changes to your personal position.

Whilst I have experience in the financial and tax industry, this channel is for recreational purposes and is not an advertisement for my business or services. Its purpose is to share quality information.

Whilst every care is taken as to the accuracy of the information in these videos, the information provided is based on the understanding of the rules at the time, and rules can change with little or no notice.

Whilst I cover a wide range of issues on the channel, in my professional role I specialise in tax efficient investments, UK and overseas pensions, estate planning, and wealth management for expatriates based in Portugal. Unfortunately, I do not offer visa or tax return services, nor can I assist US nationals.

*Thank you for your support and understanding. I hope to continue to provide you with valuable information to help you with your life in Portugal. If you have any suggestions for content you would like to hear, please let me know*


In this video, I cover what Portugal’s Non Habitual Residence (NHR) regime is, how you qualify and how best to plan for it

0:25 What is NHR?
1:08 - How to apply for NHR
2:15 – How to plan for entry into NHR
3:07 What works well under NHR?
3:28 areas that need more focus
5:00 pitfalls to avoid when applying for NHR
9:21 what happens after NHR?
9:40 are there any tie in or lock in periods?

0:25 - What is Non-Habitual Residence (NHR)?

The Non-Habitual Residence program is a 10 year tax incentivised scheme for new residents of the country – this is defined as those that have NOT been tax resident in the last 5 years

1:08 - How to apply for NHR

1. First get legal residency via EU residency certificate or visa process for non-EU nationals. The D7 visa is a popular visa route, otherwise knows as the “passive income visa”.
2. Then establish tax residency status
3. Then apply for NHR

2:15 – How to plan for entry into NHR

This is a crucial step as NHR needs to be adapted to each individuals’ specific situation and objectives

3:07 - What works well under NHR?

Examples: dividends are generally tax free and pensions qualify for flat 10% income tax

3:28 - Areas that need more focus

Income from employment and self employment requires a closer look - the default position is that you will be taxed in Portugal at standard scale/progressive rates, the exception to this is if you qualify as a “high valued activity”.

Capital gains is another area that needs more attention – this is split into two categories: gains on property and gains on shares/investment portfolios

5:00 - Pitfalls to avoid when applying for NHR

Ensure you are clearly detached from your current tax system to ensure you do not fall back into that tax “net”.
From a UK context, there are rules for the year of departure and rules that apply for each subsequent year – this sis governed by the Statutory Residence Test 2013.

Doing the correct planning in advance of your move e.g. closing down ISAs, taking PCLS from pension schemes – both would be taxable in Portugal so these are generally best done BEOFRE you arrive in Portugal.

What about planning points for post arrival in Portugal? Taking pension income (as compared with PCLS) and dividends are good examples.

You also need to correctly structure your affairs during NHR so you are tax efficient post NHR.

9:21 - What happens after NHR?

You simply become a standard rate tax payer and this should not have a large impact assuming you have done the necessary planning in advance.

9:40 - Are there any tie in or lock in periods?

In short no, although be aware of the country you are leaving e.g. the UK has a 5 year anti avoidance rule.

All these points are general guidance – please do not take as individual advice


#nonhabitualresidence #NHR #d7visa #goldenvisa #movingtoportugal

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