Last Minute NHR 1.0 & Address Requirement

[richn4 (RG)]

@AlamoMustang

Thomas,

I was not referring to changing the address on my NIF. That is my attorney. I was applying for NHR using the Bordr how to and it lists my taxpayer address in the US. It is moot as I do not have proof of PT address and am not willing to risk citizenship to try at this point.

If I understand your post correctly, I believe you are highlighting that a pre-requisite to applying for NHR is that you are tax resident in Portugal. So, you have no choice but to change your address with Financas first before the second step of applying for NHR whether you do it online or in person or with a lawyer with power of attorney. Hurry, though, because you have 27 days to do this and many of these disappear by Portuguese civil servants being on Christmas and New Year holidays.

[tommigun (Tommy Gunn)]

@AlamoMustang

I do not have proof of PT address and am not willing to risk citizenship to try at this point.

What do you see here as a risk to citizenship?

[IBB (Steven)]

@cleversprites

As the December deadline was looming and we don’t read/speak Portuguese, we hired an accountant to make the NIF address change and NHR application for us. They charged 100€ per person and the timeline was something like:

That sounds like a very reasonable price and process. Would you be able to share your accountant’s information?

[cleversprites]

Sure, they are Taxes in Portugal.

[PTbound (A L)]

For those of us scrambling to get “old NHR 1.1” before its grandfathering ends… can I just confirm my understanding is correct?

1. By 31-December 2024 (realistically before Christmas hols): become tax resident in Portugal
2. By 31-March 2025: request the NHR status with effect to 2024

…the gory details of NHR 2.0/IFICI (especially eligibility, especially on the autonomous islands) aren’t expected until Q1 next year at best. So #2 above gives us a few more months to decide whether to apply for NHR 1.1 or 2.0

True??

PS. I’m getting this from the attached, which hopefully is still current:

1 c) Becomes resident for tax purposes by 2024-12-31, and subsequently submits their application for registration as an NHR with effect from 2024, in the respective functionality on the Finance Portal, by 2025-03-31, declaring that they meet the legally established conditions to be considered an NHR.

NHR transitional regime - Oficio_circulado_90068_2024-2.pdf (236.3 KB)

[anonymous69]

@PTbound

#2 above gives us a few more months to decide whether to apply for NHR 1.1 or 2.0

Might be risky to become tax resident and then not get NHR. Could cause high taxes for at least one year.

[PTbound (A L)]

@anonymous69

Might be risky to become tax resident and then not get NHR.

Oh we’ll definitely get NHR… just not sure which flavour yet. And we’d be applying for NHR x by end-March 2025 so that it applies to the 2024 tax year in which we became PT tax resident.

…at least that’s how I think this works

[tkrunning (Thomas K. Running)]

Sounds correct to me!

[rsfranzese (Ronald Franzese)]

When you register your new address with Finanças after getting your atestado from the Junta, does it matter what finanças office you go to. For example I’m resident in Algarve, iut have to be in Lisbon for something. Can I go to the Lisbon Finanças to register my new address?

[tommigun (Tommy Gunn)]

Yes, you can do it anywhere.

[PCERoman (Roman)]

Yes,.. and no. Not all Finanças offices will be able to accommodate the address change (we were chased out of one of such offices in Lisbon). You should find a right one. And please consider one further from the city centre of Lisbon as appointments are very much in demand and, being only a few per day, are filled within the first few minutes of opening the office doors. You might be better off considering Coimbra, Guarda, Évora, or some place other than Lisbon proper. Just a thought!..

[Starts (PT)]

Looks like registration is open for NHR2.0 (I hadn’t see this before now)

Registration for new tax incentive for foreign residents in Portugal

[PTbound (A L)]

Thanks. We ended up opting for old NHR 1.1 (“bird in the hand”) vs. the still vague “2.0 birds in the bush” because:

• It’s still unclear who qualifies for 2.0, but seems you “Must engage in a professional activity for a company in Portugal” (even if it’s your own company of one employee)… and some suggest you have to keep earning from such an activity for the entire 10 years. See article I refer to below.
• …the Islands may offer 2.0 up to a wider group, but at least in Madeira (where we are) we’re busy with yet another election so no time for productive lawmaking
• If we want grandfathered 1.1 we need to register by end-March 2025… given the above will we have definitive answers on 2.0 by then? Who knows, it’s Portugal!

I liked the capital gains treatment proposed for 2.0 better, but went for the known entity instead of the “promise.”

[IBB (Steven)]

Thank you for sharing this article, great info on the business cases. It appears that I may be a startup founder by the end of 2025.

I ran out of time and was not able to establish tax residency so am looking forward to what Q1 brings for the NHR 2.0. Hopefully there are some birds in the bush.

[rsfranzese (Ronald Franzese)]

Here’s my situation. I have a GV application in as of 5/2023, so still waiting for something to happen. I arrived in PT on Dec 9. Have my atestado from the Junta signed mid december. I changed my address at the Financas before year end. Have a lease that expires the end of May. Waiting for a new password to access Portal das Finanças so I can apply for NHR. My question is if I don’t come back to Portugal this year, is that a problem for NHR status? I’ll be about 35 days short of the 183 needed for tax residency. I’m not certain I won’t be back, but it may not make sense for other reasons. It’s all confusing for me!

[PCERoman (Roman)]

If you get your NHR, it would not matter whether or not you will be in Portugal more than 183 days prior to the end of the year. Once you have it, it will be yours for the next 10 years. I would, however, recommend filing taxes in PT just to keep Finanças at ease. With NHR, it is a rather uncomplicated process.

[PTbound (A L)]

For those still trying to decide between ‘old’ and ‘new’ NHR before end-March, (if the following is correct) this could impact your choice if you planned to retire in the next 10 years…

8. Annual Confirmation:

• The Portuguese tax authorities will confirm the NHR 2.0 status annually by 31 March.
• Taxpayers must maintain records demonstrating that they carried out the qualifying activity and generated the corresponding income during the applicable years and provide this evidence upon request to benefit from the respective tax advantages.

Portugal’s Revised Non-Habitual Residents (NHR) Regime: Process and...

[rsfranzese (Ronald Franzese)]

Is there a normal time to get a response when you out in an NHR application? I entered it in the Portal Jan 9 and the system says
Estado
Indeferido (Projeto de Decisão) which means Rejected (draft decision). Does that mean it’s still being reviewed or that the rejection is done but not issued?

[tkrunning (Thomas K. Running)]

That means it was rejected, but that you can appeal. A bit strange that they would reject it since it registered your Portuguese address with Finanças in December.

They will send you a letter stating the reason for the rejection to your address on file or whichever method of communication you have opted for (could be to your tax rep, if you have one, ViaCTT, etc).

Typically, you’ll have 10 days to submit documentation showing that you qualify. If you need more time than this you can submit a request for more time.

[rsfranzese (Ronald Franzese)]

thanks for the response, I haven’t received anything to my mailing address or my email. Should I submit my GV application and my Atestado de Residencia on the alegações page?