Applicants must:

• Qualify as tax residents in Portugal, assuming that they will spend more than 183 days in Portugal in a 12-month period and have an accommodation available herein to occupy as their permanent residence;
  
• Not have been tax residents in Portugal five years prior to applying for the non-habitual residents regime;
  
• Buy or rent a house in Portugal (to be submitted as proof of residency);

Upon the submission of the tax return considering the high added value activity, the Tax Authorities may request additional documents to support that the applicants are pursuing a high added value activity.

* Qualification as NHR does not automatically grant access to tax benefits (additional requirements apply depending on the type of income).

• Applies to Personal Income Tax (IRS) for a fixed period of 10 consecutive years from the year when the individual became a tax resident.
• Requires that the person is a tax resident in each of the 10 years.
• If during the 10-year period the person ceases to be a tax resident in Portugal, the regime will not apply for that year but may be resumed as soon as the person regains tax residency.

• Exemption on foreign dividends, interest and capital gains as long as these are taxable at source within an applicable tax treaty.
• Exemption on foreign pensions if not sourced in Portugal (allows for double exemption depending on the applicable tax treaty)
• Exemption on foreign employment income if it is effectively taxed at source.
• Reduced 20% flat tax rate on domestic employment and self-employment income if derived from a high added value activity.
• Reduced 10% tax rate on foreign pensions if not sourced in Portugal.