Why does every policy decision in the EU center around demonizing āwealthy foreignersā? The fact is that at one point in time offering incentives was the only way to attract people to move to high tax jurisdictions such as Portugal. The landscape is a bit different now that such incentives are no longer needed or the tradeoffs vis-a-vis housing are too high. Enough said.
Hello.
I never was a tax resident of Portugal. So, means, now is too late to apply, because: If I apply now, before 2024, to be a tax resident, then I become tax resident from 2024. Only after that, I need to apply for NHR before 31 march 2024. But if the government cancels from 01.01.2024, then my moves would be in vain, correct?
A date has not been set yet. Iām in a similar boat to you. Waiting to hear back from my lawyers on what to do.
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No, if you become the tax resident now, the year is still 2023, and then you can immediately apply for and become NHR.
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Is it mandatory to upload tax returns for the last 5 years when applying for NHR?
And hereās an example of a ātrue benefitā to NHR - dividends & interest on UK financial accounts are not taxed in the UK when arising to non-residents, but they are capable of being taxed under the UK/PT DTT. Therefore they are not taxed āagainā in PT under NHR when arising to a PT tax resident. Youāll find many countries have similar rules (for example USA with W8-ben)
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What is DTAA?
No!
How would you want to upload non-existent tax returns?
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Can anyone confirm what the finances office will ask for to change tax address to Portugal? Can we just give them a NIF and the address which will be our habitual residence?
I just purchased the home in Lisbon, but Iām based in California and all my income is California sourced for now, but I will be making some rental income from the Lisbon condo when I am not there. And potentially exploring other business opportunities in Lisbon.
Is it possible to establish NHR if I do not spend over 183 days with a residence visa while still spending majority of the year in California? Is there actually any benefit to doing so if there is no way to escape California sourced income taxation ? is the foreign income exclusion and tax treaty benefits only available for people who are living overseas full-time ? Iām struggling to understand the best way to optimize the NHR with my Lisbon residence - while maintaining US residency amid U.S. Global taxation etc.
Any expertise or advice here would be helpful.
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How definite are the rumors that NHR will be cancelled in 2024
Answers in-lineā¦
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This is another moving the goalposts"
At time of investment, NHR was part of the deal.
If SEF processed applications in a timely manner, all those that wanted NHR treatment would now have it.
Smoke and mirrors with no integrity!
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To be fair, taxation is a wholly separate matter, and been always known as subject to change unrelated to GV.
In fact, taxation changes do not normally require a change in law (unlike the GV regime), as they are regulated by the corresponding Tax authority.
In any case, nothing is lost yet as the NHR is still available and not hard-wired on prior receipt of GV.
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Thank you for your response.
So, those who presently enjoy the NHR could have that benefit cancelled on those bases that you describe.
Iām already filing taxes in Portugal due to income from investments, but that is as a non tax resident - I only need to report Portuguese sourced income.
Youāre right, filing as NHR does incur a higher paperwork (and mental) burden - you need to report your worldwide income to Portugal, and check that there are no gotchas which might cause currently untaxed income to be taxed.
I consulted my international tax expert (ChatGPT 4 
) and it walked me through these cases. Given there is no immediate plan to move to PT, Iām leaning heavily towards not going for NHR.
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I have changed tax residency for Portugal in 2022 online. I have attached my rent agreement which was registerred in Tax authorities by my landlord (finanƧas). Others I know attached document from local municipality (junta) where you need to go with two residents living around testifying your address.
Then I got the paper letter in my mail box with the confirmation code, and after entering it to tax web site my residency changed.
If you have a real estate here, there shouldnāt be any problems. Otherwise you need some real address. Some lawyers may arrange for that, but I donāt know those. Mine does everything correct and straitforward
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Test for Tax Residency
- remain for over 183 days, whether consecutive or not, within a 12-month period, beginning or ending in the year in which you request a tax address
- have accommodation (your own or rented) that you intend to maintain and occupy as your habitual residence, on any day in the period.
I would like to know if a person will become a tax resident if he takes an apartment on lease for 3 months or 12 months.
I understand you can become a tax resident of Portugal without actually residing there. Butā¦ if you still live in another country (i.e. home country) more than 183 days a year, are not you obliged to be the tax resident of that country?
Yes, you can be tax resident of multiple countries (in accordance with the countriesā domestic laws). However, your income will typically only be taxed in one, depending on the applicable double tax (avoidance) agreements.
(There could be some gotchas if the countries in question have different types of taxes not covered by the relevant treaty, e.g. wealth taxes.)
By the way, Iāve summarized the situation as I understand it in this article:
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