The Portuguese non-habitual tax resident (NHR) regime is granted to individuals who become resident for tax purposes in Portugal. This regime may grant an exemption on certain foreign source income as well as a 20% tax rate on employment and self-employment income deriving from high value-added activities during 10 years. Entrants into the NHR regime that became Portuguese tax residents after April 1st 2020 are subject to a flat tax rate of 10% on foreign-sourced pensions (instead of the previous exemption), as well as on other payments, such as pre-retirement benefits and "lump-sum" payments from pension funds and similar retirement schemes. It targets non-resident individuals who are likely to establish residence in Portugal. View a few standard case studies on this RPBA’s infographic.

1. Pensioner that became Portuguese
tax resident before April 1st 2020
receiving lifetime foreign-sourced
pension or annuity
Non-habitual tax resident
(NHR) case-studies
What to expect concerning Personal Income Tax (PIT) and Social Security (SS)
General Rules
Private investor receiving interest
and/or dividend income from debt
and/or equity from non-blacklisted
jurisdiction - Exempt in Portugal from PIT.
- Not liable to SS.
Private individual receiving rental
income or deriving capital gains
from non-Portuguese real estate
Original or subsequent copyright
holder receiving royalties
- Exempt in Portugal from PIT.
- Exempt or not liable to SS.
Dependent worker employed by a
non-Portuguese resident company
and working outside Portugal
“Self-employed” professional
in a listed high
value-added activity
- 20% tax rate in Portugal.
- SS after 1st year of exemption.
Dependent worker employed by
a Portuguese resident company
and working in Portugal in a
listed high
value-added activity
- 20% tax rate in Portugal.
- SS in Portugal.
(+351) 212 402 743 geral@rpba.pt www.rpba.pt
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DISCLAIMER: This infographic is updated until November 9th, 2022. Although great care has been taken when drafting this
infographic, Ricardo da Palma Borges & Associados (RPBA) - Sociedade de Advogados, S.P., R.L. does not accept any responsibility
whatsoever for any consequences arising from the use of the information contained herein. The information is provided solely for
general purposes, cannot be regarded as legal or other advice. It is strongly recommended to take professional legal advice
appropriate for your case before making any decisions.
Pensioner that became Portuguese
tax resident after April 1st 2020
receiving lifetime foreign-sourced
pension or annuity
- 10% tax rate in Portugal.
- Not liable to SS.
BEFORE
1 / 4 / 2020
AFTER
1 / 4 / 2020