Non-habitual residents

The RNH Regime - Non-Habitual Residents, provides exceptional tax treatment for the classification of income received, from a Portuguese source by RNH and can also benefit from tax exemptions on foreign income.

Taxation over a 10-year period, at a fixed rate of 20% personal income tax on income earned in Portugal and the absence of double taxation, in the case of pensions and dependent and independent work earned abroad, are some of the benefits.

Who can be considered an RNH in Portugal?

It will be considered “Non-Habitual Resident”, who becomes a tax resident in Portugal and who has not been taxed as such in the last 5 years (before classifying it as a Portuguese tax resident). Individuals who meet the requirements listed below will thus be eligible to register as an RNH, and will have the right to be taxed as such for a period of 10 consecutive years, which may also be renewed.

How to obtain the RNH Status in Portugal?

For the purpose of acquiring the status of "Non-Habitual Resident", the Portuguese Tax Authority recognizes the presentation of additional documentation (tax residency certificate in another country in the previous 5 years), which will only be necessary in case of well-founded doubts about the veracity of the elements provided by the expatriate.
To obtain this status, you must meet the following requirements:

 - Have resided in the last 5 years outside Portuguese territory
 - Becoming a resident for tax purposes in Portugal, according to the rules established in the IRS Code, in the year in which the regime is intended to be applied
 - Request the assignment of RNG status when you register as a tax resident in Portugal with the local Finance Service (for that purpose, you must have stayed in Portugal for more than 183 consecutive or interpolated days, or having stayed for less time, there , on December 31 of that year, of housing in conditions that suggest their intention to maintain and occupy it as a habitual residence)

What is the rate and incidence of taxation applicable to income earned in the national territory?

In the case of dependent or self-employed work, the applicable tax rate is 20% (to which, since 2013, a 3.5% surcharge has been added). Taxation is levied on income from activities of high added value with a scientific, artistic or technical character, including:

 - Auditors
 - Architects, engineers and the like
 - Plastic artists, actors and musicians
 - Doctors, dentists, teachers and psychologists
 - Liberal, technical and similar professions
 - Superior frames
 - Investors, administrators and managers, when integrated into companies that have been covered by the contractual regime provided for in the Investment Tax Code

In what cases does the tax exemption apply to income earned abroad by RNH in Portugal?

In the case of Pensioners and Retirees, when income is taxed in the State of origin, in accordance with the convention to eliminate Double Taxation signed by Portugal with that State (according to the criteria set out in the IRS Code), and provided that the income is not considered obtained by a Portuguese source.
In the case of income from Dependent Work, when they are taxed in the State of origin, in accordance with the convention to eliminate Double Taxation entered into by Portugal with that State. Provided that such income is taxed in another State with which Portugal has not entered into any convention to eliminate Double Taxation, and provided that the income is not considered to be obtained in Portuguese territory by the criteria of article 18 of the IRS Code.

In the case of income from Independent Work (from services of high added value, with a scientific, artistic or technical character, or from intellectual or industrial property, income from capital, property income or income from capital gains and other patrimonial increments), when the income can be taxed in the country, territory or region of origin, in accordance with the convention to eliminate the double taxation celebrated by Portugal with that State. Or when there is no convention to eliminate the Double Taxation entered into, the OECD Model Convention may apply (considering the observations and reservations formulated by Portugal) and provided that the country, territory or region of origin does not have a privileged tax regime, and provided that the income is not considered as obtained in Portuguese territory by the criteria of article 18 of the IRS Code.

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