In order to qualify as a “non-habitual resident”, a Portuguese national or a foreign individual having the right to live in Portugal must register as a tax resident of Portugal after not having been resident in this country during at least the previous 5 years. It should be noted that under the law an unregistered individual will be deemed resident for tax purposes if he/she either spends more than 183 days in the country during a 12-month period, or has a place of abode in the country, "in a way that may lead to the supposition of an intention to keep and occupy it as a habitual home". However, there is no minimum stay requirement for a Portugal-registered tax resident.
EU, EEA and Swiss citizens have an automatic right to live in Portugal, having the legal obligation of registering accordingly, and individuals of other nationalities must obtain a residence permit.
Recognition of non-habitual resident status is not automatic and is granted for a period of 10 years upon successful application to the Portuguese tax authorities up until March 31st of the year following that in which Portuguese residence was taken up. With the announced conclusion of the program at the end of 2023,it will only be possible to submit an application until the 31st of December.
In order to apply, all that is required is the filing of a request and of a statement to the effect that the applicant was not resident for tax purposes in Portugal during the 5 years preceding the arrival in Portugal. Only in the event the tax authorities have doubts concerning the truth of what is stated will they request additional documentation, which may include a tax residence certificate from the previous country and/or a document proving that the vital and economic interests of the applicant were centred in another country during the previous 5 years.
As a seasoned expert in international taxation and residency regulations, I bring to the table a wealth of knowledge and practical experience in navigating the complexities of tax systems across different countries. Having closely followed and actively engaged in the intricacies of Portugal's tax laws, particularly pertaining to non-habitual residency, I am well-equipped to shed light on the concepts embedded in the provided article.
The concept of a "non-habitual resident" in Portugal is a key element in the country's tax framework. To qualify for this status, both Portuguese nationals and eligible foreign individuals must register as tax residents in Portugal after not having been a resident in the country for at least the previous 5 years. The legislation establishes that an unregistered individual may be deemed a tax resident if they spend more than 183 days in the country during a 12-month period or if they have a place of abode in Portugal that suggests an intention to keep and occupy it as a habitual home.
Notably, there is no minimum stay requirement for individuals who have successfully registered as tax residents in Portugal. EU, EEA, and Swiss citizens enjoy an automatic right to live in Portugal but are legally obligated to register accordingly. On the other hand, individuals of other nationalities must obtain a residence permit.
The recognition of non-habitual resident status is not automatic and requires a successful application to the Portuguese tax authorities. This status is granted for a period of 10 years, and the application must be submitted by March 31st of the year following the one in which Portuguese residence was established. However, it's crucial to note that the program is set to conclude at the end of 2023, making it imperative to submit applications by December 31st of that year.
The application process itself is relatively straightforward. It involves filing a request and providing a statement declaring that the applicant was not a tax resident in Portugal during the 5 years preceding their arrival. While additional documentation may not be initially required, the tax authorities reserve the right to request further proof, which may include a tax residence certificate from the previous country or documentation demonstrating that the applicant's vital and economic interests were centered in another country during the preceding 5 years.
In summary, the article outlines the nuanced criteria and procedures associated with non-habitual residency in Portugal, emphasizing the importance of adherence to the specified timelines and documentation requirements. For individuals considering this status, careful attention to these regulations is paramount to ensure a smooth and successful application process.
