End of NHR regime

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The State Budget Law Proposal for 2024 proposes the end of the Non-Habitual Resident regime and foresees a new tax incentive for scientific research and innovation.

Key aspects:

• The State Budget Law Proposal for 2024 (“2024 State Budget Proposal”), presented to the Portuguese Parliament by the Portuguese Government, confirms the Prime Minister’s intention to terminate the Non-Habitual Resident (“NHR”) regime, starting in 2024.
• The 2024 State Budget Proposal includes a grandfather clause, allowing taxpayers who already have NHR status to maintain the regime benefits until their 10-year period ends. Also, individuals who become tax residents of Portugal by December 31, 2023, can still apply for NHR status and enjoy its benefits for the 10-year period.
• A new tax incentive is proposed for scientific research and innovation, to apply only to taxpayers who relocate to Portugal who earn income from (i) teaching in higher education and scientific research, (ii) qualified jobs with contractual benefits, or (iii) post-doctoral R&D jobs under the Portuguese tax incentives system.