Is Portugal NHR Coming Back in 2024?

At the beginning of this month (June 2024), the Portuguese government announced that they would legislate, without needing parliamentary approval, to reinstate the 20% flat tax for dependent and independent workers who have become residents of Portugal after not having been residents in the past five years. It is still unknown when this change will actually take place, but it is certainly good news for people considering moving to Portugal as the NHR was a really attractive tax scheme in Portugal.

This measure is certainly reminiscent of the NHR. Regarding these types of income, both independent and dependent work income, even though it is not yet clear which professions will be included, will probably be treated similarly. However, the NHR had benefits for different types of income in addition to work income. It allowed for a 10% flat tax rate on pension income and an exemption from taxation in Portugal for interest, dividends, and rental income in most cases. These measures will not be reinstated.

That measure concerned only activities such as higher education teaching and scientific research careers, qualified jobs within the scope of contractual benefits for productive investment, and research and development jobs for workers with doctorates. This was much narrower than the highly qualified list under the NHR. The expectation is that the new list will be more in line with the NHR list.

Certainly! Here’s a revised version:

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