On 29 th November 2023, the Portuguese Parliament approved the State Budget for 2024, with all the intended amendments and corrections, in which one of the topics highlighted in such document is the confirmation of the end of the Non-Habitual Resident (“NHR”) regime.
This final text of the State Budget Law for 2024 amends the initial proposal and now includes certain exceptions that allow taxpayers with previous ties to Portuguese territory, suggesting an ongoing relocation process, to move to Portugal until 31 st December 204, and thus benefit from the NHR status. For this reason, there’s still a “window of opportunity” for those individuals that have already started their process to relocated to Portugal, so that they can benefit from this special tax regime. The following “cases”, circumstances, conditions and timelines can still allow the NHR to be obtained:
A) If by 31 st December 2023, the Applicant meets the conditions to qualify as a resident for tax purposes, namely:
a. They have been here for ≥ 183 days, consecutive or interpolated;
b. Having stayed for less time, they have, on 31.12.2023, a dwelling which indicates their intention to occupy it as their habitual residence;
c. On 31.12.2023, they are crew members of ships or aircraft, provided they are in service;
d. Perform public functions or commissions abroad in the service of Portugal.
B) If until 31.12.2024 the Applicants become tax residents and declare, for the registration as an NHR, that they have one of the following:
a. Promissory Works Contract or Works contract signed by 31.12.2023, whose duties must be carried out in Portugal;
b. Lease agreement or other contract granting the use or possession of real estate in Portugal signed until 10.10.2023;
c. Reservation Agreement or Promissory Contract the acquisition of real estate in Portugal signed until 10.10.2023;
d. Enrollment or registration for dependents in any school, university or college in Portugal, done by 10.10.2023;
e. Residence visa or Residence Permit valid until 31.12.2023;
f. Have initiated the process of obtaining a Portuguese Visa or Residence Permit by 31.12.2023.
C) If they are family members of the household of the applicants referred to and that comply with one of the previous conditions.
In view of the above, and as always, we at CRS Law Firm remain available to assist all our clients and potential clients on these matters.
