This generous tax scheme is open to any EU or Non-EU resident who has NOT been a resident of Portgual during the previous 5 years. Holders of Non-Habitual Resident Status (NHR), for a period of ten consecutive years, are entitled to:
- exemption of income obtained abroad from dividends on business profits, property rental income and real estate capital gains, intellectual or industrial property;
- taxation on income obtained in Portugal at reduced rates in the case of high added value activities (e.g. 20% for employment or self-employment income and 28% for capital and real estate income).
- Pension income (non-governmental) taxed at a flat-rate of 10%
An important difference between this route to residency and the Golden visa is that here you are not entitled to work, but it is perhaps a more accessible option for residency.
Even not being allowed to work in Portugal that does not mean you will not be allowed to work in any other country provided you do not lose Portuguese residence by staying abroad working for longer periods of time.
