EnglishThe NHR – Non Habitant Resident program is the Portuguese program that is in many ways parallel to the Israeli returning resident program. However, this program includes many benefits that may benefit the Israeli citizen in Portugal and, may at the end of the day, be worth a great deal of money for him. To date, more than 10,000 citizens from around the world have been accepted into the program and helped themselves with the heavy tax burden placed on them. In this guide we will detail about the program, the criteria for admission and the various terms of the program. So what is the NHR program? The program is designed to attract valuable and influential investors and professionals who will enrich Portugal’s coffers and development both in the short and long term. In short, the goal is to attract minds and attract money, both of which are a required resource in any Western country. The program was first implemented in 2009 and allows significant tax savings for those who are eligible and indeed, for over 10 years, the program is a great success and manages to produce a significant development channel in the country. Why should anyone be accepted into the program at all? There are so many reasons and in the list below we have tried to summarize the important and central ones: significant tax benefits for 10 years! Tax exemption on capital gains. Transferring money to Portugal without any taxation or restriction. Full tax exemption for all income outside Portugal. A fixed tax of a total of 20% on some of the income that is actually received in Portugal (usually stands at 48%). Tax exemption on gifts and inheritance from family members. There is no minimum requirement for a stay in Portugal! Above all, in the end, tax residents in one of the EU member states for all the implications that this has.
Do you pay tax in other countries? According to the NHR plan, Portugal will not tax most of the income coming from outside Portugal that the program participants earned, because it will be possible to tax income abroad. It has currently signed double taxation agreements with 79 countries, including Israel. So what are the requirements? To be accepted into the NHR program candidates must meet the following 2 (cumulative) criteria: The applicant should have the right to reside in Portugal by being a citizen of the EU / EEA / Switzerland, or through programs such as the Golden Visa program. This group includes, of course, recipients of Portuguese citizenship out of necessity of deportation from Spain. The applicant was not a Portuguese tax resident in the five years prior to the date of application to participate in the NHR program.
