Your suitcases are packed, your visas are confirmed and your passports are ready for passport control- you are all set for the move to Portugal! Before getting on the plane there is one more important thing you should learn about and that is-NHR
What is NHR?
NHR (Non-Habitual Resident) is a visa for those who wish to immigrate to Portugal, whilst continuing to earn most of their income from outside the country.
Many professions are eligible for NHR visa such as dentists, surgeons, lecturers, programmers, researchers, tax consultants, sculptors, artists and more.
NHR visa provides economic benefits on income taxation originating within Portugal and outside of the country, subject to the conditions established by law.
The procedure of receiving a NHR visa is long and complex and it is divided to several types of visas according to the applicant’s income level.
In most cases, those who will be granted with an NHS visa will pay 20% tax, per example, a resident earning 30,000 EURO per year will pat 37% whilst a NHR visa holder will pay only 20% tax. This significant economic difference makes Portugal a favorable and attractive relocation destination, not only for Israelis but also for many European Union residents.
What are the conditions for obtaining an NHR VISA?
In order to be considered an NHR resident in Portugal, you must meet several conditions:
1. You are over 18 years old.
2. You have legally regulated your residency in Portugal
3. You were not a resident of Portugal and/or paid taxes in the country five years prior to the application.
4. You have been in Portugal for more than 183 days.
5. You have a permanent address in the country and an identification number for tax purposes (Número de Identificação Fiscal).
The NHR VISA benefits are granted (to those who met the conditions, of course) for a period of 10 years and can have a significant impact on the financial conduct of individuals or families who wish to immigrate to Portugal.
In order to receive an NHR visa in the fastest and most efficient way, it is recommended to do so using a professional service, since any mistake in the submission of documents and reports during the process could lead to the rejection of the application.
What income is exempt from tax in Portugal?
The following incomes are tax-free for foreign residents in Portugal: pension, rental, capital gains (not shares), and income from interests and dividends.
Additional benefits that NHR visa holders are entitled to are exemption from inheritance tax, gift tax and wealth tax.The income will be exempt from tax provided that a tax treaty has been signed between the immigrant’s country of origin (in our case Israel) and Portugal. As Israelis, we will pay tax on income in Israel and will not have to pay additional tax to Portugal.
Relocating to Portugal can positively affect your financial situation, provided you manage to get an NHR visa.For more details about the NHR visa and tax benefits in Portugal, contact our professional team at