The end of the Portugal Non Habitual Tax Residence Program

Like dominoes falling in succession, Portugal is making sweeping changes to its tax and residency programs. First, real estate was removed as an investment option for the Golden Visa, and now, the Non-Habitual Tax Residence (NHR) program is coming to an end in 2024.

?? Why is the NHR program ending? According to Prime Minister António Costa, the NHR scheme disproportionately benefits high earners and has contributed to an overheated housing market with unsustainable prices. As a result, Portugal will close this 10-year tax incentive program in 2024.

?? What happens to current NHR holders? Those already approved will retain their tax benefits, including: ? Exemptions on foreign-sourced income ? A 20% reduced tax rate on certain local earnings ? A fixed 10-year tax period of benefits

But the question remains: How will Portugal’s attractiveness for global entrepreneurs, investors, and high-net-worth individuals change after 2024?

???? Changes to the Portugal Golden Visa

The recent "More Housing" bill has also eliminated real estate as a qualifying investment for the Golden Visa. Instead, new pathways focus on capital investment and job creation, similar to the U.S. EB-5 program:

?? EUR 500,000 in a collective investment fund (CIF) collective investment fund - whose maturity at the time of investment is at least five years, and which has a majority of their investments (60% +) in commercial companies with a head office in Portugal;

?? EUR 500,000 in a Portuguese company, creating at least five jobs

?? EUR 500,000 in R&D or tech-related activities ?? EUR 250,000 in cultural heritage, artistic, or recovery initiatives

Portugal’s visa and tax incentives have played a major role in attracting global investors, techpreneurs, and founders—but with these drastic shifts, will demand remain strong, or will talent and capital look elsewhere?

?? Read the full analysis on The Golden Wealth Wire here: https://civitaspost.com/the-end-of-the-portugal-non-habitual-tax-residence-program/

#PortugalGoldenVisa #TaxIncentives #WealthManagement #InvestmentMigration #Portugal #TaxPlanning #Entrepreneurs

This opinion piece is written by Lorena Jimenez Lopez, Founder and Managing Director of Civitas Post, a marketing and media firm dedicated to helping companies in investment migration, international tax, and the wealth sector enhance their presence, attract new business, and achieve growth. Civitas Post also publishes The Golden Wealth Wire, a premier industry magazine created by and for professionals in these sectors.

The information provided does not constitute legal or tax advice, readers are advise to seek independent advice based on their own circumstances referring to their local bar associations and chartered accountancy bodies in their country of residence.

Revision 16 October 2023 FROM : EUR 500,000 in a CIF - collective investment fund - that is at least five years old and which have a majority of their investments (60% +) done locally;

TO: EUR 500,000 in a CIF - collective investment fund - whose maturity at the time of investment is at least five years, and which has a majority of their investments (60% +) in commercial companies with a head office in Portugal;