The End of Portugal's Non-Habitual Residence (NHR) Program Announced

@Garrett This is what I’ve been told by the tax department of my Portuguese lawyers.

If you do a casual search about the NHR then you’d be led to believe that all income and capital gains taxes are exempt from taxes in Portugal but that’s absolutely not the case.

Even under NHR, anyone with capital gains from normal ETFs - for example tracker funds from iShares or Vanguard - traded on a platform outside PT is still liable for capital gains tax in Portugal. This was confirmed to me by our tax lawyers.

They advise clients to shift investments into high-income funds rather than growth funds. Okay, for 10 years of NHR that makes short-term sense but then you’d be left with lower overall wealth so I’m not sure it’s the best advice.

Oh well. Our raised expectations of the GV and NHR are crumbling anyway so this detail makes little difference.

1 Like