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NHR & Portugal Golden Visa
NHR Portugal’s Non-Habitual Residents tax regime
What is the Portugal NHR tax regime? Introduced in 2009 and updated in 2020, the non-habitual tax regime offers reduced tax rates and tax exemptions for new residents in Portugal for the first ten years. This makes Portugal a very attractive country for individuals to reside, especially for those who want to enjoy retirement in the country. With over 23,000 non-habitual tax regime residents registered in Portugal today, the scheme has been highly successful and the 2021 State Budget confirms that Portugal will continue to offer these benefits for new residents in 2021.
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Why become a non-habitual resident in Portugal? • Flat 10% tax rate on foreign pension income. Private sector pensions are the ones accepted to qualify for
NHR status. • Tax exemption on many foreign sources of income, such as dividends, real estate gains, rental income and interest. • Flat 20% tax rate for employed or self-employed
Portuguese income from pre-defined scientific, artistic or technical professions. • Exemption of tax on gifts or inheritance to family members. • No wealth tax. • Free remittance of funds to Portugal.
Who can apply for NHR? • Everyone who has the right to reside in Portugal either by being an EU/EEA/Swiss citizen, or has a residence permit from the Portuguese consular office in their home country
and
• has not been a Portuguese tax resident in the five years prior to taking up residence in Portugal. How to apply for NHR? The first step is to prove that you have the legal right to reside in Portugal. Citizens of EU/EEA/Switzerland can register without a visa. They can register for residency at their region’s city hall given the freedom of movement within the EU.
Non-EU citizens must first receive a residence permit allowing them to settle in Portugal. They can obtain the permit in different ways, but the two most common methods are via the Golden Visa Program or D7 visa, also known as the “Passive Income” visa. They can do this either online (on the site of “SEF”) or in their country’s Portuguese embassy. To successfully apply for NHR, you must be registered as Portuguese resident and tax resident and hold a place of abode by the 31st of December in the year of registration. You can then apply for the Non-Habitual Resident programme until the 31st of March the following year.
How to maintain the NHR status? To maintain the NHR status you must spend a minimum of 183 days in Portugal or when spending less than 183 days in a year, you should have a real estate property in a condition that makes it possible to presume the intention to keep it and to occupy it as your primary and usual place of residence.
What is my obligation when having NHR status? Once registered as a Non-Habitual tax resident you are obliged to file tax returns in Portugal which include your total worldwide income and expenses.
Note: to find out which benefits apply to you when becoming a Non-Habitual tax resident, we recommend consulting a specialist. We can provide recommendations on a financial advisor to assist you.
Portugal Golden Visa
Invest in Portugal and get a residence permit
Since the Portuguese Golden Visa programme was launched in 2012, a total of 9,444 investors and 16,130 family members have benefited from the Portugal Golden Visa. With billions of direct investments resulting from the Golden Visa programme (reference date: February 2021), the programme has shown to be very popular and successful. It has therefore become known as the most successful residency-by-investment programme in Europe. IMPORTANT UPDATE: Anyone seeking to buy property in exchange for a golden visa in Lisbon, Porto or a coastal area like the Algarve has a golden window until the end of 2021. The Golden Visa programme has been extended until January 2022. After this date new regulations come into effect.
Portugal Golden Visa Investment options • Purchase a property for at least € 500,000. If you purchase a property in a low density area, the minimum investment amount is € 400,000. • Purchase a property for at least € 350,000 located in an area where urban redevelopment is taking place.
When located in a low-density area, the minimum investment is only 280,000 euros! • An investment of at least € 350,000 in a qualified
Investment Fund. • Make a capital transfer of at least 1 million euros into a Portuguese bank account (set to be increased to 1.5 million euros after the 1st of January 2022). • Purchase company shares worth at least 1 million euros. • Invest in a company for at least 1 million euros. • The creation of at least ten new, full-time jobs for
Portuguese nationals. • Invest at least € 350,000 for the creation of a commercial company or to reinforce the share capital of a commercial company, through which you create at least five full-time jobs. • Make a capital transfer of at least € 350,000 for research activities in science or technology by either public or private scientific research institutions (increased to € 500,000 from the 1st of January 2022). • Make a capital transfer of at least €250,000 to support the arts or reconstruction of national heritage. The benefits of the Portugal Golden Visa The Portugal Golden Visa offers a wide range of benefits: • Freedom to travel throughout the entire Schengen Area. • After 5 years you can apply for Portuguese citizenship. • You can include ~ your spouse and your children - provided that they are younger than 18, or younger than 26 if they are single, and are studying full-time. ~ your parents and those of your spouse if they are over 66, or over 55 if they depend on you for care. ~ you or your spouse’s, siblings if under the age of 18. • Unlike many other Golden Visa programmes in Europe,
Portugal is not blacklisted by the OECD, the Organization for Economic Cooperation and Development. You are therefore using a reliable visa programme. • You have the option to use the Portuguese Non-Habitual
Tax Regime, and become eligible for tax benefits.
The Portugal Golden Visa has become known as the most successful residency-by-investment programme in Europe. The top 5 countries of origin for investors using the programme are currently China, Brazil, Turkey, and SouthAfrica. With 90% of the visas obtained through property investment, the opportunity to apply for the beneficiary NHR tax regime has made the country a very attractive place to invest and reside in, which has led to an increased demand for property in Portugal.
Do you want help in obtaining your visa? Contact us by phone: +351-289 501 664 or email info@divine-home.eu
Why rent through Portucasa?
Why rent through Portucasa:
Largest provider of holiday homes in the Algarve 20 years of experience Modern bookings system Focus on families and active holidaymakers Multilingual communication (e.g. Dutch, German,
English and Portuguese) Offices in Portugal, Germany and the Netherlands
Large international reach
If desired, your property on more than 50 websites including:
Professional marketing with a.o.
SEA - Search Engine Advertising SEO – Search Engine optimization Link Building on websites & travel blogs Social media
Unique and repeat posts Collaborations with influencers Email marketing Newsletters to specified groups Automated emails on a regular basis
Collaborations with local partners
In addition, your accommodation will be regularly visited by our quality team and in the near future we will open 3 service points in the Algarve from where villa management will also be offered.
Avenida dos Descobrimentos, Quinta Bela Vista Comercial, Loja 27, 8200-182 Albufeira, Portugal www.portucasa.com | rent@portucasa.com +31 24 684 4350
Transferring Currency Overseas?
Divine Home are proud to partner with GC Partners
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GC Partners have an experienced and friendly team in Portugal that can help you save money when it comes to your foreign currency exchange requirements. Not only do they outperform the high street banks, but they also guide you through the money transfer process.
Whether you are buying your rst property or looking to send funds back to your home country after a property sale, GC Partners can help you nd solutions to minimise your currency risk and achieve the best savings.
Why we recommend GC Partners?
Quite simply, we trust them, and our clients trust them. They’re helpful, friendly and efficient. • Competitive rates of exchange with no hidden transfer fees or charges • Dedicated account managers to assist with any currency requirements • Contract options to help • Regular monthly payment options (mortgage payments, bills or school fees etc) • Authorised and regulated by the Financial
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Notes
Portugal
Portugal is located in south-west Europe and Cape St. Vincent is the most south-westerly point of the mainland. Mainland Portugal consists of five regions divided into 19 districts, of which the Algarve (district of Faro) is one. Portugal has well-developed infrastructure with almost 500 miles of motorways and 1,770 miles of train lines. As a once great maritime nation, Portugal also has many ports.
Portugal has a single border with Spain to the east and north and the Atlantic Ocean to the south and west. A total of 10.8 million people live here in an area of 57,300 square miles - three times the size of Belgium and more than twice the size of the Netherlands. The country’s capital and largest city is Lisbon.
Algarve
With its 125-mile coastline, the Algarve stretches along the entire southern coast of Portugal, covering more than 4,000 square miles. The distance from the coast to its northernmost point is no more than 25 miles, but the landscape is highly varied. The coast to the west of Faro boasts well-known rock formations, small beaches and many caverns and caves formed by erosion by the water and the wind. East of Faro, there are lagoons and miles of sandy beaches. This coastal strip is almost entirely a protected nature reserve (Parque Natural da Ria Formosa). The larger coastal towns include Albufeira, Lagos and Portimão.
Because of the central location of Faro airport, it won’t take long to get to your destination after your flight. The A22 provides a fast road connection between all major cities in the Algarve and extends to the border with Spain, whilst the N125 provides easy access to the Algarve’s many beaches.
DIVINE HOME OFFICES
ALBUFEIRA Quinta Bela Vista Comercial 27, 8200-127 Albufeira Portugal Tel. +351 289 501 664 | info@divine-home.eu
SÃO BRÁS DE ALPORTEL Largo de São Sebastião 17, 8150-107 São Brás de Alportel Portugal Tel. +351 289 841 751 | info@divine-home.eu
MONCARAPACHO Rua 25 de Abril 4, 8700-081 Moncarapacho Portugal Tel. +351 289 247 824 | info@divine-home.eu
ΜÉRTOLA - ALENTEJO Rua Dr. Afonso Costa 63, 7750-352 Mértola Portugal Tel. +351 286 249 248 | info@divine-home.eu
HOLLAND Rietbaan 2 2908 LP Capelle aan den IJssel Holland | Tel: +31 10 497 3311 www.divine-home.eu
info@divine-home.eu
info@divine-home.eu
ΜÉRTOLA - ALENTEJO Rua Dr. Afonso Costa 63
info@divine-home.eu
