Passport & Consular Services

Who Is Considered a Resident in Portugal for Tax Purposes?

In Portugal, an individual is considered a resident for tax purposes if they meet any of the following criteria:

Stay in Portugal for more than 183 days in a calendar year, whether consecutive or not.

Have a dwelling in Portugal that is deemed to be their habitual residence on December 31 of that year, with the intention to maintain it as their main residence.
If an individual meets either of these criteria, they are considered a tax resident in Portugal and are subject to taxation on their worldwide income.

It’s important to note that Portugal also has a concept of “non-habitual residents” (NHR) who may benefit from certain tax advantages for a period of 10 years. Non-habitual residents are individuals who become tax residents in Portugal and have not been considered tax residents in the previous five years. The NHR regime offers attractive tax benefits for certain types of income, such as foreign-source income and pension income.

Determining tax residency can be complex, and it is recommended to consult with a tax advisor or accountant who specializes in Portuguese tax law to ensure proper compliance with tax regulations and to take advantage of any available tax benefits.

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