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Planning your Portugal move this year? A new NHR opportunity announced

Updated: Nov 27, 2023

In 2024, the government introduced a 'transitional NHR tax regime,' requiring evidence of Portugal relocation plans made in 2023.

In 2024, Portugal introduced a 'transitory NHR tax regime' for non-habitual residents, allowing continued benefits until December 31, 2024.


To qualify, individuals must show evidence of pre-2024 plans to relocate, such as property purchases, visa applications, or enrollment in Portuguese schools. This temporary scheme follows a State Budget (OE) amendment proposed by the Socialist Party (PS) in Parliament.


As per the government's official statement, there are six criteria for benefiting from the transitory regime:

  1. Commitment to employment or a work contract initiated by December 31, 2023, with duties to be carried out in Portugal.

  2. Lease or usage contract for property in Portugal concluded by October 10, 2023.

  3. Reservation or promissory purchase contract for property rights in Portugal finalized by October 10, 2023.

  4. Enrollment of dependents in a Portuguese educational institution by October 10, 2023.

  5. Possession of a residence visa or permit valid until December 31, 2023.

  6. Initiation of proceedings for a residence visa or permit by December 31, 2023.

PM António Costa justified the scheme's cancellation earlier in the year, citing the NHR regime as an unjust fiscal measure that inflated housing markets to unsustainable levels.


PS argues for the necessity of a transitional period, emphasizing the need to protect the expectations of individuals who've committed to immigrating or returning to Portugal. They stress that without such a scheme, confidence in Portugal as a chosen residence could suffer.


The announcement of this transitional regime follows closely after Costa's resignation and the scheduling of early elections for March 10, 2024. PS has faced criticism for altering stances on contentious issues, including the planned IUC vehicle circulation tax increase, following President Marcelo Rebelo de Sousa's announcement of early elections.


Essentially, the new transitory NHR regime extends the existing one for an additional year, leaving the decision on its abolishment, continuation, or modification to the incoming government.


Introduced in 2009, the Non-Habitual Residence regime in Portugal grants individuals a decade-long period of reduced tax rates on income.

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