In an unexpected turn of events, the Portuguese government has put its plans to abolish the coveted Non Habitual Resident (NHR) tax program at the end of 2023 on hold for the time being. This follows the resignation of Prime Minister António Costa, who stepped down earlier this week after he was investigated in a corruption case. This step overturns the legislative program that provided for the abolition of the NHR tax program.
Portugal sticks to the NHR program (for now): Why expats can breathe a sigh of relief, but hurry is advised
The NHR scheme, known for its appeal to wealthy investors and expatriates, was originally due to close to new applicants by the end of 2023. This decision by the government, taken after Costa’s resignation, means that the proposals to end the NHR tax regime are also invalid – but probably not for long.
Expert recommendation for using the NHR program
Despite this unexpected continuation of the program, experts advise interested parties to apply without delay. The future of the program remains uncertain, as it is under pressure both in Portugal and from the European Union. During this time of uncertainty, we at DW&P have received an increase in inquiries as many try to submit their NHR applications and visa applications by the end of the year.
It is an opportunity for those who want to benefit from the tax relief offered by the NHR program. Seek advice as there is a good chance that NHR tax relief could still be closed to new claimants in 2024. Our team at DW&P offers specialized advice on the NHR program in Portugal and supports your decisions to give you sound advice: https://www.drwerner.com/en/services/nhr-status-portugal/
Disclaimer: The above-mentioned article is simply based on independent research carried out by Dr. Werner and Partners and cannot constitute any form of legal advice. If you would like to meet with up with any of our representatives to seek further information, please contact us for an appointment.
