frequently asked questions & reasons to move to portugal 27.3.2015
TRANSCRIPT
THE PORTUGUESE NON-HABITUAL TAX RESIDENT (NHR) REGIME
Ricardo da Palma Borgesricardorpbapt
wwwrpbapt
Frequently Asked Questions ampReasons to Move to Portugal
Why Portugal
29th country on the OECD Better Life Index
2016 (1) 5th on 2015rsquos Internations Quality of
Life Index (2)
According to The Huffington Post Algarve was
considered the Worlds best place to live or
retire in 2016 (3) and as reported by The
Telegraph Portugal is the 2nd best place to
retire abroad (4)
Portugal (httpenwikipediaorgwikiPortugal) has a number of attractive characteristics
01Quality of Life
2
(1) - httpwwwoecdbetterlifeindexorgcountriesportugal(2) - httpsinassets1-internationsgmbhnetdna-sslcomstaticbundlesinternationsexpatinsiderimages2015topicquality_of_life_index_fulljpg(3) - httpwwwhuffingtonpostcomkathleen-peddicordbest-places-to-retire-overseas_b_8917292html(4) - httpwwwtelegraphcoukfinancepersonalfinancepensions9677415The-10-best-places-to-retire-abroadhtml
The non-habitual tax resident (NHR) is a tax regime created to improve
Portuguese international competitiveness This regime targets non-
resident individuals who are likely to establish a permanent or a
temporary residence in Portugal
3
The NHR regime establishes under certain conditions IRS exemptions
on foreign source income as well as a limited taxation of income
deriving from certain high value added activities
FAQ 2What are the benefits of the NHR regime
FAQ 1 What is the NHR regime
Frequently Asked Questions
4
02Weather
Weather and environment quality
(9th country on the OECD 2016
Better Life Index)
Why Portugal
03Sunshine
Estimated 3300 hours of sunshine
per year one of the highest rates
in Europe
Foreign-sourced passive income (interest dividends certain royalties other income from capital capital gains and
income from immovable property) derived by non habitual residents is exempt (without progression except in the case
of capital gains on real estate) in Portugal provided that it is potentially liable to taxation in the source State under the
rules of a tax treaty or of the OECD Model Tax Convention (no effective taxation is required)
Foreign-sourced income from pensions is exempt (with progression)
Foreign-sourced employment income is exempt (with progression) in Portugal provided that it is effectively taxed in
the source State under the rules of a tax treaty or of the OECD Model Tax Convention
Foreign-sourced employment income is exempt (without progression) in Portugal provided that it is effectively taxed in
the source State under the rules of a tax treaty or of the OECD Model Tax Convention and that it is income derived
from high value added activities of a scientific artistic or technical nature
Foreign-sourced income from independent personal services is exempt (without progression) in Portugal provided that
it is potentially liable to taxation in the source State under the rules of a tax treaty or of the OECD Model Tax
Convention (no effective taxation is required) and that it is income derived from high value added activities of a
scientific artistic or technical nature5
FAQ 3 What types of income are eligible for exemption under NHR regime
Frequently Asked Questions
6
Modern and cosmopolitan country
Lisbon was elected 2nd best place to travel in 2015 (5)
and Porto was the best European destination for
2017 (6)
Lisbon was also ranked the 16th most livable city in
the world in Monocle Quality of Life Survey 2016
Best Cities to Live (7)
(5) - httpwwweuropeanbestdestinationscomtopeurope-best-destinations-2015(6) - httpwwweuropeanbestdestinationscombest-of-europeeuropean-best-destinations-2017(7) - httpsmonoclecommagazineissues95top-25-liveable-cities(8) - httpenwikipediaorgwikiList_of_World_Heritage_Sites_in_Portugal
05Cultural Offering
Portugal has a great list of ldquowondersrdquo declared a World Heritage Site by Unesco (8)
Fado (the Portuguese most traditional music genre) was considered by UNESCO Intangible Cultural
Heritage of Humanity in 2011
Why Portugal 04Modernity
7
FAQ 4What types of income are eligible for reduced rates under NHR regime
Frequently Asked Questions
Domestic and foreign-sourced income deriving from high value added activities of a
scientific artistic or technical nature will be liable to autonomous taxation at a special 20
flat rate and not to the general and progressive IRS rates (currently of up to 565 for yearly
taxable income above euro 250000) A 35 surcharge may be applied in addition to the said
20 rate raising the total tax rate on such income to 235
8
06Gastronomy
The Portuguese gastronomy is as rich and
diverse as its heritage and landscapes and has
recently been internationally recognized with
14 Michelin star restaurants in 2016 (9)
Portugal is also one of the best wine tourism
destinations Our country had 578 prizes at
the 2016rsquos Decanter World Wines Awards
(DWWA) (10) and also achieved 16 Grand Gold
114 Gold and 227 Silver Medals in the 2016rsquos
Concours Mondial de Bruxelles (11)
(9) - httpportugalconfidentialcom2016-michelin-star-restaurants-in-portugal(10) - httpawardsdecantercomDWWA2016(11) - httpresultsconcoursmondialcomindexphppage=resultsampformular[ConcoursID]=59
Why Portugal
Ministerial Order nr 122010 of January 7 defined the ldquohigh value added activities of a scientific artistic or
technical naturerdquo qualifying for the regime It encompasses a wide range of professions and activities as follows
9
FAQ 5 What are considered high value added activities of a
scientific artistic or technical nature
1 - Architects engineers and similar technicians
101 ndash Architects
102 ndash Engineers
103 ndash Geologists
2 - Visual artists actors and musicians
201 ndash Theater ballet film radio and television Artists
202 ndash Singers
203 ndash Sculptors
204 ndash Musicians
205 ndash Painters
3 - Auditors
301 ndash Auditors
302 ndash Tax Consultants
4 - Doctors and dentists
401 ndash Dentists
402 ndash Analyst Doctors
403 ndash Surgeons
404 ndash Board doctors in ships
405 ndash General Practitioners
406 ndash Dentists
407 ndash Dentist Doctors
408 ndash Physiatrists
Frequently Asked Questions
10
6 - Psychologists
601 ndash Psychologists
5 - Teachers
501 ndash University professors
409 ndash Gastroenterologists
410 ndash Ophthalmologists
411 ndash Orthopaedists
412 ndash Otorhinolaryngologists
413 ndash Paediatricians
414 ndash Radiologists
415 ndash Doctors in other specialties
7 - Professional services technicians andsimilar
701 ndash Archaeologists
702 ndash Biologists and experts in life sciences
703 ndash Computer Programmers
704 ndash Consulting and computer programming and
activities related to information and computer
technology
705 ndash Computer programming activities
706 ndash Computer consultancy activities
707 ndash Management and operation of computer
equipment
708 ndash Activities of information services
709 ndash Activities of data processing hosting
information and related activitiesWeb portals
710 ndash Activities of data processing hosting
information and related activities
711 ndash Other information service activities
712 ndash Activities of news agencies
713 ndash Other information service activities
714 ndash Scientific research and development
715 ndash Research and development of science physical
and natural
716 ndash Research and development in biotechnology
717 ndash Designers
8 - Investors administrators and managers
801 ndash Investors administrators and managers of
companies promoting productive investment if
allocated to eligible projects under tax benefits
contracts awarded under the Tax Code for
Investment approved by Decree-Law No 2492009
of 23 September
802 ndash Senior employees of companies
11
08Other Languages Spoken
A large part of the population speaks foreign languages
especially English Spanish and French
Portugal was ranked 13th out of 70th countries in the EF
Global English Proficiency Index 2015 (13)
07EducationThere is a significant number of International Schools
throughout Portugal attended by both Portuguese and
foreign students
Portugal is ranked as the 8th best in the World according
to the U21 Rankings of National Higher Education
Systems 2016 (12)
Why Portugal
(12) - httpuniversitas21comnewsdetails220u21-ranking-of-national-higher-education-systems-2016(13) - httpwwwefeduptepi
Individuals who become resident for tax purposes in Portugal
without having been so in the previous five years
12
Staying for more than 183 days in the Portuguese territory whether these days are
consecutive or not in any 12-month period beginning or ending in a given tax year
If staying for a shorter period having in the Portuguese territory on any day of the
period referred above a dwelling under circumstances that lead to the presumption of
an intention to hold and occupy it as a place of habitual abode
Being on the 31st of December a crew member of a ship or aircraft at the service of
an entity with residence head office or effective management in Portugal
FAQ 7 How do I acquire tax residence in Portugal
FAQ 6 Who may apply for the NHR regime
Frequently Asked Questions
13
09Daily FlightsAbout 300 daily flights from Portugal
to foreign countries
Porto Airport ranks among the best
airports in Europe since 2006 (14)
10Convenient Location
for Globetrotters
Portugal ranked 1st on Globe Spots
Top 10 countries in 2013 (15)
(14) - httpwwwaciaeroAirport-Service-QualityASQ-AwardsCurrent-WinnersBest-Airport-By-RegionEurope(15) - httpwwwglobespotscombesttravelphpyear=2013
Why Portugal
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
Why Portugal
29th country on the OECD Better Life Index
2016 (1) 5th on 2015rsquos Internations Quality of
Life Index (2)
According to The Huffington Post Algarve was
considered the Worlds best place to live or
retire in 2016 (3) and as reported by The
Telegraph Portugal is the 2nd best place to
retire abroad (4)
Portugal (httpenwikipediaorgwikiPortugal) has a number of attractive characteristics
01Quality of Life
2
(1) - httpwwwoecdbetterlifeindexorgcountriesportugal(2) - httpsinassets1-internationsgmbhnetdna-sslcomstaticbundlesinternationsexpatinsiderimages2015topicquality_of_life_index_fulljpg(3) - httpwwwhuffingtonpostcomkathleen-peddicordbest-places-to-retire-overseas_b_8917292html(4) - httpwwwtelegraphcoukfinancepersonalfinancepensions9677415The-10-best-places-to-retire-abroadhtml
The non-habitual tax resident (NHR) is a tax regime created to improve
Portuguese international competitiveness This regime targets non-
resident individuals who are likely to establish a permanent or a
temporary residence in Portugal
3
The NHR regime establishes under certain conditions IRS exemptions
on foreign source income as well as a limited taxation of income
deriving from certain high value added activities
FAQ 2What are the benefits of the NHR regime
FAQ 1 What is the NHR regime
Frequently Asked Questions
4
02Weather
Weather and environment quality
(9th country on the OECD 2016
Better Life Index)
Why Portugal
03Sunshine
Estimated 3300 hours of sunshine
per year one of the highest rates
in Europe
Foreign-sourced passive income (interest dividends certain royalties other income from capital capital gains and
income from immovable property) derived by non habitual residents is exempt (without progression except in the case
of capital gains on real estate) in Portugal provided that it is potentially liable to taxation in the source State under the
rules of a tax treaty or of the OECD Model Tax Convention (no effective taxation is required)
Foreign-sourced income from pensions is exempt (with progression)
Foreign-sourced employment income is exempt (with progression) in Portugal provided that it is effectively taxed in
the source State under the rules of a tax treaty or of the OECD Model Tax Convention
Foreign-sourced employment income is exempt (without progression) in Portugal provided that it is effectively taxed in
the source State under the rules of a tax treaty or of the OECD Model Tax Convention and that it is income derived
from high value added activities of a scientific artistic or technical nature
Foreign-sourced income from independent personal services is exempt (without progression) in Portugal provided that
it is potentially liable to taxation in the source State under the rules of a tax treaty or of the OECD Model Tax
Convention (no effective taxation is required) and that it is income derived from high value added activities of a
scientific artistic or technical nature5
FAQ 3 What types of income are eligible for exemption under NHR regime
Frequently Asked Questions
6
Modern and cosmopolitan country
Lisbon was elected 2nd best place to travel in 2015 (5)
and Porto was the best European destination for
2017 (6)
Lisbon was also ranked the 16th most livable city in
the world in Monocle Quality of Life Survey 2016
Best Cities to Live (7)
(5) - httpwwweuropeanbestdestinationscomtopeurope-best-destinations-2015(6) - httpwwweuropeanbestdestinationscombest-of-europeeuropean-best-destinations-2017(7) - httpsmonoclecommagazineissues95top-25-liveable-cities(8) - httpenwikipediaorgwikiList_of_World_Heritage_Sites_in_Portugal
05Cultural Offering
Portugal has a great list of ldquowondersrdquo declared a World Heritage Site by Unesco (8)
Fado (the Portuguese most traditional music genre) was considered by UNESCO Intangible Cultural
Heritage of Humanity in 2011
Why Portugal 04Modernity
7
FAQ 4What types of income are eligible for reduced rates under NHR regime
Frequently Asked Questions
Domestic and foreign-sourced income deriving from high value added activities of a
scientific artistic or technical nature will be liable to autonomous taxation at a special 20
flat rate and not to the general and progressive IRS rates (currently of up to 565 for yearly
taxable income above euro 250000) A 35 surcharge may be applied in addition to the said
20 rate raising the total tax rate on such income to 235
8
06Gastronomy
The Portuguese gastronomy is as rich and
diverse as its heritage and landscapes and has
recently been internationally recognized with
14 Michelin star restaurants in 2016 (9)
Portugal is also one of the best wine tourism
destinations Our country had 578 prizes at
the 2016rsquos Decanter World Wines Awards
(DWWA) (10) and also achieved 16 Grand Gold
114 Gold and 227 Silver Medals in the 2016rsquos
Concours Mondial de Bruxelles (11)
(9) - httpportugalconfidentialcom2016-michelin-star-restaurants-in-portugal(10) - httpawardsdecantercomDWWA2016(11) - httpresultsconcoursmondialcomindexphppage=resultsampformular[ConcoursID]=59
Why Portugal
Ministerial Order nr 122010 of January 7 defined the ldquohigh value added activities of a scientific artistic or
technical naturerdquo qualifying for the regime It encompasses a wide range of professions and activities as follows
9
FAQ 5 What are considered high value added activities of a
scientific artistic or technical nature
1 - Architects engineers and similar technicians
101 ndash Architects
102 ndash Engineers
103 ndash Geologists
2 - Visual artists actors and musicians
201 ndash Theater ballet film radio and television Artists
202 ndash Singers
203 ndash Sculptors
204 ndash Musicians
205 ndash Painters
3 - Auditors
301 ndash Auditors
302 ndash Tax Consultants
4 - Doctors and dentists
401 ndash Dentists
402 ndash Analyst Doctors
403 ndash Surgeons
404 ndash Board doctors in ships
405 ndash General Practitioners
406 ndash Dentists
407 ndash Dentist Doctors
408 ndash Physiatrists
Frequently Asked Questions
10
6 - Psychologists
601 ndash Psychologists
5 - Teachers
501 ndash University professors
409 ndash Gastroenterologists
410 ndash Ophthalmologists
411 ndash Orthopaedists
412 ndash Otorhinolaryngologists
413 ndash Paediatricians
414 ndash Radiologists
415 ndash Doctors in other specialties
7 - Professional services technicians andsimilar
701 ndash Archaeologists
702 ndash Biologists and experts in life sciences
703 ndash Computer Programmers
704 ndash Consulting and computer programming and
activities related to information and computer
technology
705 ndash Computer programming activities
706 ndash Computer consultancy activities
707 ndash Management and operation of computer
equipment
708 ndash Activities of information services
709 ndash Activities of data processing hosting
information and related activitiesWeb portals
710 ndash Activities of data processing hosting
information and related activities
711 ndash Other information service activities
712 ndash Activities of news agencies
713 ndash Other information service activities
714 ndash Scientific research and development
715 ndash Research and development of science physical
and natural
716 ndash Research and development in biotechnology
717 ndash Designers
8 - Investors administrators and managers
801 ndash Investors administrators and managers of
companies promoting productive investment if
allocated to eligible projects under tax benefits
contracts awarded under the Tax Code for
Investment approved by Decree-Law No 2492009
of 23 September
802 ndash Senior employees of companies
11
08Other Languages Spoken
A large part of the population speaks foreign languages
especially English Spanish and French
Portugal was ranked 13th out of 70th countries in the EF
Global English Proficiency Index 2015 (13)
07EducationThere is a significant number of International Schools
throughout Portugal attended by both Portuguese and
foreign students
Portugal is ranked as the 8th best in the World according
to the U21 Rankings of National Higher Education
Systems 2016 (12)
Why Portugal
(12) - httpuniversitas21comnewsdetails220u21-ranking-of-national-higher-education-systems-2016(13) - httpwwwefeduptepi
Individuals who become resident for tax purposes in Portugal
without having been so in the previous five years
12
Staying for more than 183 days in the Portuguese territory whether these days are
consecutive or not in any 12-month period beginning or ending in a given tax year
If staying for a shorter period having in the Portuguese territory on any day of the
period referred above a dwelling under circumstances that lead to the presumption of
an intention to hold and occupy it as a place of habitual abode
Being on the 31st of December a crew member of a ship or aircraft at the service of
an entity with residence head office or effective management in Portugal
FAQ 7 How do I acquire tax residence in Portugal
FAQ 6 Who may apply for the NHR regime
Frequently Asked Questions
13
09Daily FlightsAbout 300 daily flights from Portugal
to foreign countries
Porto Airport ranks among the best
airports in Europe since 2006 (14)
10Convenient Location
for Globetrotters
Portugal ranked 1st on Globe Spots
Top 10 countries in 2013 (15)
(14) - httpwwwaciaeroAirport-Service-QualityASQ-AwardsCurrent-WinnersBest-Airport-By-RegionEurope(15) - httpwwwglobespotscombesttravelphpyear=2013
Why Portugal
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
The non-habitual tax resident (NHR) is a tax regime created to improve
Portuguese international competitiveness This regime targets non-
resident individuals who are likely to establish a permanent or a
temporary residence in Portugal
3
The NHR regime establishes under certain conditions IRS exemptions
on foreign source income as well as a limited taxation of income
deriving from certain high value added activities
FAQ 2What are the benefits of the NHR regime
FAQ 1 What is the NHR regime
Frequently Asked Questions
4
02Weather
Weather and environment quality
(9th country on the OECD 2016
Better Life Index)
Why Portugal
03Sunshine
Estimated 3300 hours of sunshine
per year one of the highest rates
in Europe
Foreign-sourced passive income (interest dividends certain royalties other income from capital capital gains and
income from immovable property) derived by non habitual residents is exempt (without progression except in the case
of capital gains on real estate) in Portugal provided that it is potentially liable to taxation in the source State under the
rules of a tax treaty or of the OECD Model Tax Convention (no effective taxation is required)
Foreign-sourced income from pensions is exempt (with progression)
Foreign-sourced employment income is exempt (with progression) in Portugal provided that it is effectively taxed in
the source State under the rules of a tax treaty or of the OECD Model Tax Convention
Foreign-sourced employment income is exempt (without progression) in Portugal provided that it is effectively taxed in
the source State under the rules of a tax treaty or of the OECD Model Tax Convention and that it is income derived
from high value added activities of a scientific artistic or technical nature
Foreign-sourced income from independent personal services is exempt (without progression) in Portugal provided that
it is potentially liable to taxation in the source State under the rules of a tax treaty or of the OECD Model Tax
Convention (no effective taxation is required) and that it is income derived from high value added activities of a
scientific artistic or technical nature5
FAQ 3 What types of income are eligible for exemption under NHR regime
Frequently Asked Questions
6
Modern and cosmopolitan country
Lisbon was elected 2nd best place to travel in 2015 (5)
and Porto was the best European destination for
2017 (6)
Lisbon was also ranked the 16th most livable city in
the world in Monocle Quality of Life Survey 2016
Best Cities to Live (7)
(5) - httpwwweuropeanbestdestinationscomtopeurope-best-destinations-2015(6) - httpwwweuropeanbestdestinationscombest-of-europeeuropean-best-destinations-2017(7) - httpsmonoclecommagazineissues95top-25-liveable-cities(8) - httpenwikipediaorgwikiList_of_World_Heritage_Sites_in_Portugal
05Cultural Offering
Portugal has a great list of ldquowondersrdquo declared a World Heritage Site by Unesco (8)
Fado (the Portuguese most traditional music genre) was considered by UNESCO Intangible Cultural
Heritage of Humanity in 2011
Why Portugal 04Modernity
7
FAQ 4What types of income are eligible for reduced rates under NHR regime
Frequently Asked Questions
Domestic and foreign-sourced income deriving from high value added activities of a
scientific artistic or technical nature will be liable to autonomous taxation at a special 20
flat rate and not to the general and progressive IRS rates (currently of up to 565 for yearly
taxable income above euro 250000) A 35 surcharge may be applied in addition to the said
20 rate raising the total tax rate on such income to 235
8
06Gastronomy
The Portuguese gastronomy is as rich and
diverse as its heritage and landscapes and has
recently been internationally recognized with
14 Michelin star restaurants in 2016 (9)
Portugal is also one of the best wine tourism
destinations Our country had 578 prizes at
the 2016rsquos Decanter World Wines Awards
(DWWA) (10) and also achieved 16 Grand Gold
114 Gold and 227 Silver Medals in the 2016rsquos
Concours Mondial de Bruxelles (11)
(9) - httpportugalconfidentialcom2016-michelin-star-restaurants-in-portugal(10) - httpawardsdecantercomDWWA2016(11) - httpresultsconcoursmondialcomindexphppage=resultsampformular[ConcoursID]=59
Why Portugal
Ministerial Order nr 122010 of January 7 defined the ldquohigh value added activities of a scientific artistic or
technical naturerdquo qualifying for the regime It encompasses a wide range of professions and activities as follows
9
FAQ 5 What are considered high value added activities of a
scientific artistic or technical nature
1 - Architects engineers and similar technicians
101 ndash Architects
102 ndash Engineers
103 ndash Geologists
2 - Visual artists actors and musicians
201 ndash Theater ballet film radio and television Artists
202 ndash Singers
203 ndash Sculptors
204 ndash Musicians
205 ndash Painters
3 - Auditors
301 ndash Auditors
302 ndash Tax Consultants
4 - Doctors and dentists
401 ndash Dentists
402 ndash Analyst Doctors
403 ndash Surgeons
404 ndash Board doctors in ships
405 ndash General Practitioners
406 ndash Dentists
407 ndash Dentist Doctors
408 ndash Physiatrists
Frequently Asked Questions
10
6 - Psychologists
601 ndash Psychologists
5 - Teachers
501 ndash University professors
409 ndash Gastroenterologists
410 ndash Ophthalmologists
411 ndash Orthopaedists
412 ndash Otorhinolaryngologists
413 ndash Paediatricians
414 ndash Radiologists
415 ndash Doctors in other specialties
7 - Professional services technicians andsimilar
701 ndash Archaeologists
702 ndash Biologists and experts in life sciences
703 ndash Computer Programmers
704 ndash Consulting and computer programming and
activities related to information and computer
technology
705 ndash Computer programming activities
706 ndash Computer consultancy activities
707 ndash Management and operation of computer
equipment
708 ndash Activities of information services
709 ndash Activities of data processing hosting
information and related activitiesWeb portals
710 ndash Activities of data processing hosting
information and related activities
711 ndash Other information service activities
712 ndash Activities of news agencies
713 ndash Other information service activities
714 ndash Scientific research and development
715 ndash Research and development of science physical
and natural
716 ndash Research and development in biotechnology
717 ndash Designers
8 - Investors administrators and managers
801 ndash Investors administrators and managers of
companies promoting productive investment if
allocated to eligible projects under tax benefits
contracts awarded under the Tax Code for
Investment approved by Decree-Law No 2492009
of 23 September
802 ndash Senior employees of companies
11
08Other Languages Spoken
A large part of the population speaks foreign languages
especially English Spanish and French
Portugal was ranked 13th out of 70th countries in the EF
Global English Proficiency Index 2015 (13)
07EducationThere is a significant number of International Schools
throughout Portugal attended by both Portuguese and
foreign students
Portugal is ranked as the 8th best in the World according
to the U21 Rankings of National Higher Education
Systems 2016 (12)
Why Portugal
(12) - httpuniversitas21comnewsdetails220u21-ranking-of-national-higher-education-systems-2016(13) - httpwwwefeduptepi
Individuals who become resident for tax purposes in Portugal
without having been so in the previous five years
12
Staying for more than 183 days in the Portuguese territory whether these days are
consecutive or not in any 12-month period beginning or ending in a given tax year
If staying for a shorter period having in the Portuguese territory on any day of the
period referred above a dwelling under circumstances that lead to the presumption of
an intention to hold and occupy it as a place of habitual abode
Being on the 31st of December a crew member of a ship or aircraft at the service of
an entity with residence head office or effective management in Portugal
FAQ 7 How do I acquire tax residence in Portugal
FAQ 6 Who may apply for the NHR regime
Frequently Asked Questions
13
09Daily FlightsAbout 300 daily flights from Portugal
to foreign countries
Porto Airport ranks among the best
airports in Europe since 2006 (14)
10Convenient Location
for Globetrotters
Portugal ranked 1st on Globe Spots
Top 10 countries in 2013 (15)
(14) - httpwwwaciaeroAirport-Service-QualityASQ-AwardsCurrent-WinnersBest-Airport-By-RegionEurope(15) - httpwwwglobespotscombesttravelphpyear=2013
Why Portugal
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
4
02Weather
Weather and environment quality
(9th country on the OECD 2016
Better Life Index)
Why Portugal
03Sunshine
Estimated 3300 hours of sunshine
per year one of the highest rates
in Europe
Foreign-sourced passive income (interest dividends certain royalties other income from capital capital gains and
income from immovable property) derived by non habitual residents is exempt (without progression except in the case
of capital gains on real estate) in Portugal provided that it is potentially liable to taxation in the source State under the
rules of a tax treaty or of the OECD Model Tax Convention (no effective taxation is required)
Foreign-sourced income from pensions is exempt (with progression)
Foreign-sourced employment income is exempt (with progression) in Portugal provided that it is effectively taxed in
the source State under the rules of a tax treaty or of the OECD Model Tax Convention
Foreign-sourced employment income is exempt (without progression) in Portugal provided that it is effectively taxed in
the source State under the rules of a tax treaty or of the OECD Model Tax Convention and that it is income derived
from high value added activities of a scientific artistic or technical nature
Foreign-sourced income from independent personal services is exempt (without progression) in Portugal provided that
it is potentially liable to taxation in the source State under the rules of a tax treaty or of the OECD Model Tax
Convention (no effective taxation is required) and that it is income derived from high value added activities of a
scientific artistic or technical nature5
FAQ 3 What types of income are eligible for exemption under NHR regime
Frequently Asked Questions
6
Modern and cosmopolitan country
Lisbon was elected 2nd best place to travel in 2015 (5)
and Porto was the best European destination for
2017 (6)
Lisbon was also ranked the 16th most livable city in
the world in Monocle Quality of Life Survey 2016
Best Cities to Live (7)
(5) - httpwwweuropeanbestdestinationscomtopeurope-best-destinations-2015(6) - httpwwweuropeanbestdestinationscombest-of-europeeuropean-best-destinations-2017(7) - httpsmonoclecommagazineissues95top-25-liveable-cities(8) - httpenwikipediaorgwikiList_of_World_Heritage_Sites_in_Portugal
05Cultural Offering
Portugal has a great list of ldquowondersrdquo declared a World Heritage Site by Unesco (8)
Fado (the Portuguese most traditional music genre) was considered by UNESCO Intangible Cultural
Heritage of Humanity in 2011
Why Portugal 04Modernity
7
FAQ 4What types of income are eligible for reduced rates under NHR regime
Frequently Asked Questions
Domestic and foreign-sourced income deriving from high value added activities of a
scientific artistic or technical nature will be liable to autonomous taxation at a special 20
flat rate and not to the general and progressive IRS rates (currently of up to 565 for yearly
taxable income above euro 250000) A 35 surcharge may be applied in addition to the said
20 rate raising the total tax rate on such income to 235
8
06Gastronomy
The Portuguese gastronomy is as rich and
diverse as its heritage and landscapes and has
recently been internationally recognized with
14 Michelin star restaurants in 2016 (9)
Portugal is also one of the best wine tourism
destinations Our country had 578 prizes at
the 2016rsquos Decanter World Wines Awards
(DWWA) (10) and also achieved 16 Grand Gold
114 Gold and 227 Silver Medals in the 2016rsquos
Concours Mondial de Bruxelles (11)
(9) - httpportugalconfidentialcom2016-michelin-star-restaurants-in-portugal(10) - httpawardsdecantercomDWWA2016(11) - httpresultsconcoursmondialcomindexphppage=resultsampformular[ConcoursID]=59
Why Portugal
Ministerial Order nr 122010 of January 7 defined the ldquohigh value added activities of a scientific artistic or
technical naturerdquo qualifying for the regime It encompasses a wide range of professions and activities as follows
9
FAQ 5 What are considered high value added activities of a
scientific artistic or technical nature
1 - Architects engineers and similar technicians
101 ndash Architects
102 ndash Engineers
103 ndash Geologists
2 - Visual artists actors and musicians
201 ndash Theater ballet film radio and television Artists
202 ndash Singers
203 ndash Sculptors
204 ndash Musicians
205 ndash Painters
3 - Auditors
301 ndash Auditors
302 ndash Tax Consultants
4 - Doctors and dentists
401 ndash Dentists
402 ndash Analyst Doctors
403 ndash Surgeons
404 ndash Board doctors in ships
405 ndash General Practitioners
406 ndash Dentists
407 ndash Dentist Doctors
408 ndash Physiatrists
Frequently Asked Questions
10
6 - Psychologists
601 ndash Psychologists
5 - Teachers
501 ndash University professors
409 ndash Gastroenterologists
410 ndash Ophthalmologists
411 ndash Orthopaedists
412 ndash Otorhinolaryngologists
413 ndash Paediatricians
414 ndash Radiologists
415 ndash Doctors in other specialties
7 - Professional services technicians andsimilar
701 ndash Archaeologists
702 ndash Biologists and experts in life sciences
703 ndash Computer Programmers
704 ndash Consulting and computer programming and
activities related to information and computer
technology
705 ndash Computer programming activities
706 ndash Computer consultancy activities
707 ndash Management and operation of computer
equipment
708 ndash Activities of information services
709 ndash Activities of data processing hosting
information and related activitiesWeb portals
710 ndash Activities of data processing hosting
information and related activities
711 ndash Other information service activities
712 ndash Activities of news agencies
713 ndash Other information service activities
714 ndash Scientific research and development
715 ndash Research and development of science physical
and natural
716 ndash Research and development in biotechnology
717 ndash Designers
8 - Investors administrators and managers
801 ndash Investors administrators and managers of
companies promoting productive investment if
allocated to eligible projects under tax benefits
contracts awarded under the Tax Code for
Investment approved by Decree-Law No 2492009
of 23 September
802 ndash Senior employees of companies
11
08Other Languages Spoken
A large part of the population speaks foreign languages
especially English Spanish and French
Portugal was ranked 13th out of 70th countries in the EF
Global English Proficiency Index 2015 (13)
07EducationThere is a significant number of International Schools
throughout Portugal attended by both Portuguese and
foreign students
Portugal is ranked as the 8th best in the World according
to the U21 Rankings of National Higher Education
Systems 2016 (12)
Why Portugal
(12) - httpuniversitas21comnewsdetails220u21-ranking-of-national-higher-education-systems-2016(13) - httpwwwefeduptepi
Individuals who become resident for tax purposes in Portugal
without having been so in the previous five years
12
Staying for more than 183 days in the Portuguese territory whether these days are
consecutive or not in any 12-month period beginning or ending in a given tax year
If staying for a shorter period having in the Portuguese territory on any day of the
period referred above a dwelling under circumstances that lead to the presumption of
an intention to hold and occupy it as a place of habitual abode
Being on the 31st of December a crew member of a ship or aircraft at the service of
an entity with residence head office or effective management in Portugal
FAQ 7 How do I acquire tax residence in Portugal
FAQ 6 Who may apply for the NHR regime
Frequently Asked Questions
13
09Daily FlightsAbout 300 daily flights from Portugal
to foreign countries
Porto Airport ranks among the best
airports in Europe since 2006 (14)
10Convenient Location
for Globetrotters
Portugal ranked 1st on Globe Spots
Top 10 countries in 2013 (15)
(14) - httpwwwaciaeroAirport-Service-QualityASQ-AwardsCurrent-WinnersBest-Airport-By-RegionEurope(15) - httpwwwglobespotscombesttravelphpyear=2013
Why Portugal
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
Foreign-sourced passive income (interest dividends certain royalties other income from capital capital gains and
income from immovable property) derived by non habitual residents is exempt (without progression except in the case
of capital gains on real estate) in Portugal provided that it is potentially liable to taxation in the source State under the
rules of a tax treaty or of the OECD Model Tax Convention (no effective taxation is required)
Foreign-sourced income from pensions is exempt (with progression)
Foreign-sourced employment income is exempt (with progression) in Portugal provided that it is effectively taxed in
the source State under the rules of a tax treaty or of the OECD Model Tax Convention
Foreign-sourced employment income is exempt (without progression) in Portugal provided that it is effectively taxed in
the source State under the rules of a tax treaty or of the OECD Model Tax Convention and that it is income derived
from high value added activities of a scientific artistic or technical nature
Foreign-sourced income from independent personal services is exempt (without progression) in Portugal provided that
it is potentially liable to taxation in the source State under the rules of a tax treaty or of the OECD Model Tax
Convention (no effective taxation is required) and that it is income derived from high value added activities of a
scientific artistic or technical nature5
FAQ 3 What types of income are eligible for exemption under NHR regime
Frequently Asked Questions
6
Modern and cosmopolitan country
Lisbon was elected 2nd best place to travel in 2015 (5)
and Porto was the best European destination for
2017 (6)
Lisbon was also ranked the 16th most livable city in
the world in Monocle Quality of Life Survey 2016
Best Cities to Live (7)
(5) - httpwwweuropeanbestdestinationscomtopeurope-best-destinations-2015(6) - httpwwweuropeanbestdestinationscombest-of-europeeuropean-best-destinations-2017(7) - httpsmonoclecommagazineissues95top-25-liveable-cities(8) - httpenwikipediaorgwikiList_of_World_Heritage_Sites_in_Portugal
05Cultural Offering
Portugal has a great list of ldquowondersrdquo declared a World Heritage Site by Unesco (8)
Fado (the Portuguese most traditional music genre) was considered by UNESCO Intangible Cultural
Heritage of Humanity in 2011
Why Portugal 04Modernity
7
FAQ 4What types of income are eligible for reduced rates under NHR regime
Frequently Asked Questions
Domestic and foreign-sourced income deriving from high value added activities of a
scientific artistic or technical nature will be liable to autonomous taxation at a special 20
flat rate and not to the general and progressive IRS rates (currently of up to 565 for yearly
taxable income above euro 250000) A 35 surcharge may be applied in addition to the said
20 rate raising the total tax rate on such income to 235
8
06Gastronomy
The Portuguese gastronomy is as rich and
diverse as its heritage and landscapes and has
recently been internationally recognized with
14 Michelin star restaurants in 2016 (9)
Portugal is also one of the best wine tourism
destinations Our country had 578 prizes at
the 2016rsquos Decanter World Wines Awards
(DWWA) (10) and also achieved 16 Grand Gold
114 Gold and 227 Silver Medals in the 2016rsquos
Concours Mondial de Bruxelles (11)
(9) - httpportugalconfidentialcom2016-michelin-star-restaurants-in-portugal(10) - httpawardsdecantercomDWWA2016(11) - httpresultsconcoursmondialcomindexphppage=resultsampformular[ConcoursID]=59
Why Portugal
Ministerial Order nr 122010 of January 7 defined the ldquohigh value added activities of a scientific artistic or
technical naturerdquo qualifying for the regime It encompasses a wide range of professions and activities as follows
9
FAQ 5 What are considered high value added activities of a
scientific artistic or technical nature
1 - Architects engineers and similar technicians
101 ndash Architects
102 ndash Engineers
103 ndash Geologists
2 - Visual artists actors and musicians
201 ndash Theater ballet film radio and television Artists
202 ndash Singers
203 ndash Sculptors
204 ndash Musicians
205 ndash Painters
3 - Auditors
301 ndash Auditors
302 ndash Tax Consultants
4 - Doctors and dentists
401 ndash Dentists
402 ndash Analyst Doctors
403 ndash Surgeons
404 ndash Board doctors in ships
405 ndash General Practitioners
406 ndash Dentists
407 ndash Dentist Doctors
408 ndash Physiatrists
Frequently Asked Questions
10
6 - Psychologists
601 ndash Psychologists
5 - Teachers
501 ndash University professors
409 ndash Gastroenterologists
410 ndash Ophthalmologists
411 ndash Orthopaedists
412 ndash Otorhinolaryngologists
413 ndash Paediatricians
414 ndash Radiologists
415 ndash Doctors in other specialties
7 - Professional services technicians andsimilar
701 ndash Archaeologists
702 ndash Biologists and experts in life sciences
703 ndash Computer Programmers
704 ndash Consulting and computer programming and
activities related to information and computer
technology
705 ndash Computer programming activities
706 ndash Computer consultancy activities
707 ndash Management and operation of computer
equipment
708 ndash Activities of information services
709 ndash Activities of data processing hosting
information and related activitiesWeb portals
710 ndash Activities of data processing hosting
information and related activities
711 ndash Other information service activities
712 ndash Activities of news agencies
713 ndash Other information service activities
714 ndash Scientific research and development
715 ndash Research and development of science physical
and natural
716 ndash Research and development in biotechnology
717 ndash Designers
8 - Investors administrators and managers
801 ndash Investors administrators and managers of
companies promoting productive investment if
allocated to eligible projects under tax benefits
contracts awarded under the Tax Code for
Investment approved by Decree-Law No 2492009
of 23 September
802 ndash Senior employees of companies
11
08Other Languages Spoken
A large part of the population speaks foreign languages
especially English Spanish and French
Portugal was ranked 13th out of 70th countries in the EF
Global English Proficiency Index 2015 (13)
07EducationThere is a significant number of International Schools
throughout Portugal attended by both Portuguese and
foreign students
Portugal is ranked as the 8th best in the World according
to the U21 Rankings of National Higher Education
Systems 2016 (12)
Why Portugal
(12) - httpuniversitas21comnewsdetails220u21-ranking-of-national-higher-education-systems-2016(13) - httpwwwefeduptepi
Individuals who become resident for tax purposes in Portugal
without having been so in the previous five years
12
Staying for more than 183 days in the Portuguese territory whether these days are
consecutive or not in any 12-month period beginning or ending in a given tax year
If staying for a shorter period having in the Portuguese territory on any day of the
period referred above a dwelling under circumstances that lead to the presumption of
an intention to hold and occupy it as a place of habitual abode
Being on the 31st of December a crew member of a ship or aircraft at the service of
an entity with residence head office or effective management in Portugal
FAQ 7 How do I acquire tax residence in Portugal
FAQ 6 Who may apply for the NHR regime
Frequently Asked Questions
13
09Daily FlightsAbout 300 daily flights from Portugal
to foreign countries
Porto Airport ranks among the best
airports in Europe since 2006 (14)
10Convenient Location
for Globetrotters
Portugal ranked 1st on Globe Spots
Top 10 countries in 2013 (15)
(14) - httpwwwaciaeroAirport-Service-QualityASQ-AwardsCurrent-WinnersBest-Airport-By-RegionEurope(15) - httpwwwglobespotscombesttravelphpyear=2013
Why Portugal
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
6
Modern and cosmopolitan country
Lisbon was elected 2nd best place to travel in 2015 (5)
and Porto was the best European destination for
2017 (6)
Lisbon was also ranked the 16th most livable city in
the world in Monocle Quality of Life Survey 2016
Best Cities to Live (7)
(5) - httpwwweuropeanbestdestinationscomtopeurope-best-destinations-2015(6) - httpwwweuropeanbestdestinationscombest-of-europeeuropean-best-destinations-2017(7) - httpsmonoclecommagazineissues95top-25-liveable-cities(8) - httpenwikipediaorgwikiList_of_World_Heritage_Sites_in_Portugal
05Cultural Offering
Portugal has a great list of ldquowondersrdquo declared a World Heritage Site by Unesco (8)
Fado (the Portuguese most traditional music genre) was considered by UNESCO Intangible Cultural
Heritage of Humanity in 2011
Why Portugal 04Modernity
7
FAQ 4What types of income are eligible for reduced rates under NHR regime
Frequently Asked Questions
Domestic and foreign-sourced income deriving from high value added activities of a
scientific artistic or technical nature will be liable to autonomous taxation at a special 20
flat rate and not to the general and progressive IRS rates (currently of up to 565 for yearly
taxable income above euro 250000) A 35 surcharge may be applied in addition to the said
20 rate raising the total tax rate on such income to 235
8
06Gastronomy
The Portuguese gastronomy is as rich and
diverse as its heritage and landscapes and has
recently been internationally recognized with
14 Michelin star restaurants in 2016 (9)
Portugal is also one of the best wine tourism
destinations Our country had 578 prizes at
the 2016rsquos Decanter World Wines Awards
(DWWA) (10) and also achieved 16 Grand Gold
114 Gold and 227 Silver Medals in the 2016rsquos
Concours Mondial de Bruxelles (11)
(9) - httpportugalconfidentialcom2016-michelin-star-restaurants-in-portugal(10) - httpawardsdecantercomDWWA2016(11) - httpresultsconcoursmondialcomindexphppage=resultsampformular[ConcoursID]=59
Why Portugal
Ministerial Order nr 122010 of January 7 defined the ldquohigh value added activities of a scientific artistic or
technical naturerdquo qualifying for the regime It encompasses a wide range of professions and activities as follows
9
FAQ 5 What are considered high value added activities of a
scientific artistic or technical nature
1 - Architects engineers and similar technicians
101 ndash Architects
102 ndash Engineers
103 ndash Geologists
2 - Visual artists actors and musicians
201 ndash Theater ballet film radio and television Artists
202 ndash Singers
203 ndash Sculptors
204 ndash Musicians
205 ndash Painters
3 - Auditors
301 ndash Auditors
302 ndash Tax Consultants
4 - Doctors and dentists
401 ndash Dentists
402 ndash Analyst Doctors
403 ndash Surgeons
404 ndash Board doctors in ships
405 ndash General Practitioners
406 ndash Dentists
407 ndash Dentist Doctors
408 ndash Physiatrists
Frequently Asked Questions
10
6 - Psychologists
601 ndash Psychologists
5 - Teachers
501 ndash University professors
409 ndash Gastroenterologists
410 ndash Ophthalmologists
411 ndash Orthopaedists
412 ndash Otorhinolaryngologists
413 ndash Paediatricians
414 ndash Radiologists
415 ndash Doctors in other specialties
7 - Professional services technicians andsimilar
701 ndash Archaeologists
702 ndash Biologists and experts in life sciences
703 ndash Computer Programmers
704 ndash Consulting and computer programming and
activities related to information and computer
technology
705 ndash Computer programming activities
706 ndash Computer consultancy activities
707 ndash Management and operation of computer
equipment
708 ndash Activities of information services
709 ndash Activities of data processing hosting
information and related activitiesWeb portals
710 ndash Activities of data processing hosting
information and related activities
711 ndash Other information service activities
712 ndash Activities of news agencies
713 ndash Other information service activities
714 ndash Scientific research and development
715 ndash Research and development of science physical
and natural
716 ndash Research and development in biotechnology
717 ndash Designers
8 - Investors administrators and managers
801 ndash Investors administrators and managers of
companies promoting productive investment if
allocated to eligible projects under tax benefits
contracts awarded under the Tax Code for
Investment approved by Decree-Law No 2492009
of 23 September
802 ndash Senior employees of companies
11
08Other Languages Spoken
A large part of the population speaks foreign languages
especially English Spanish and French
Portugal was ranked 13th out of 70th countries in the EF
Global English Proficiency Index 2015 (13)
07EducationThere is a significant number of International Schools
throughout Portugal attended by both Portuguese and
foreign students
Portugal is ranked as the 8th best in the World according
to the U21 Rankings of National Higher Education
Systems 2016 (12)
Why Portugal
(12) - httpuniversitas21comnewsdetails220u21-ranking-of-national-higher-education-systems-2016(13) - httpwwwefeduptepi
Individuals who become resident for tax purposes in Portugal
without having been so in the previous five years
12
Staying for more than 183 days in the Portuguese territory whether these days are
consecutive or not in any 12-month period beginning or ending in a given tax year
If staying for a shorter period having in the Portuguese territory on any day of the
period referred above a dwelling under circumstances that lead to the presumption of
an intention to hold and occupy it as a place of habitual abode
Being on the 31st of December a crew member of a ship or aircraft at the service of
an entity with residence head office or effective management in Portugal
FAQ 7 How do I acquire tax residence in Portugal
FAQ 6 Who may apply for the NHR regime
Frequently Asked Questions
13
09Daily FlightsAbout 300 daily flights from Portugal
to foreign countries
Porto Airport ranks among the best
airports in Europe since 2006 (14)
10Convenient Location
for Globetrotters
Portugal ranked 1st on Globe Spots
Top 10 countries in 2013 (15)
(14) - httpwwwaciaeroAirport-Service-QualityASQ-AwardsCurrent-WinnersBest-Airport-By-RegionEurope(15) - httpwwwglobespotscombesttravelphpyear=2013
Why Portugal
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
7
FAQ 4What types of income are eligible for reduced rates under NHR regime
Frequently Asked Questions
Domestic and foreign-sourced income deriving from high value added activities of a
scientific artistic or technical nature will be liable to autonomous taxation at a special 20
flat rate and not to the general and progressive IRS rates (currently of up to 565 for yearly
taxable income above euro 250000) A 35 surcharge may be applied in addition to the said
20 rate raising the total tax rate on such income to 235
8
06Gastronomy
The Portuguese gastronomy is as rich and
diverse as its heritage and landscapes and has
recently been internationally recognized with
14 Michelin star restaurants in 2016 (9)
Portugal is also one of the best wine tourism
destinations Our country had 578 prizes at
the 2016rsquos Decanter World Wines Awards
(DWWA) (10) and also achieved 16 Grand Gold
114 Gold and 227 Silver Medals in the 2016rsquos
Concours Mondial de Bruxelles (11)
(9) - httpportugalconfidentialcom2016-michelin-star-restaurants-in-portugal(10) - httpawardsdecantercomDWWA2016(11) - httpresultsconcoursmondialcomindexphppage=resultsampformular[ConcoursID]=59
Why Portugal
Ministerial Order nr 122010 of January 7 defined the ldquohigh value added activities of a scientific artistic or
technical naturerdquo qualifying for the regime It encompasses a wide range of professions and activities as follows
9
FAQ 5 What are considered high value added activities of a
scientific artistic or technical nature
1 - Architects engineers and similar technicians
101 ndash Architects
102 ndash Engineers
103 ndash Geologists
2 - Visual artists actors and musicians
201 ndash Theater ballet film radio and television Artists
202 ndash Singers
203 ndash Sculptors
204 ndash Musicians
205 ndash Painters
3 - Auditors
301 ndash Auditors
302 ndash Tax Consultants
4 - Doctors and dentists
401 ndash Dentists
402 ndash Analyst Doctors
403 ndash Surgeons
404 ndash Board doctors in ships
405 ndash General Practitioners
406 ndash Dentists
407 ndash Dentist Doctors
408 ndash Physiatrists
Frequently Asked Questions
10
6 - Psychologists
601 ndash Psychologists
5 - Teachers
501 ndash University professors
409 ndash Gastroenterologists
410 ndash Ophthalmologists
411 ndash Orthopaedists
412 ndash Otorhinolaryngologists
413 ndash Paediatricians
414 ndash Radiologists
415 ndash Doctors in other specialties
7 - Professional services technicians andsimilar
701 ndash Archaeologists
702 ndash Biologists and experts in life sciences
703 ndash Computer Programmers
704 ndash Consulting and computer programming and
activities related to information and computer
technology
705 ndash Computer programming activities
706 ndash Computer consultancy activities
707 ndash Management and operation of computer
equipment
708 ndash Activities of information services
709 ndash Activities of data processing hosting
information and related activitiesWeb portals
710 ndash Activities of data processing hosting
information and related activities
711 ndash Other information service activities
712 ndash Activities of news agencies
713 ndash Other information service activities
714 ndash Scientific research and development
715 ndash Research and development of science physical
and natural
716 ndash Research and development in biotechnology
717 ndash Designers
8 - Investors administrators and managers
801 ndash Investors administrators and managers of
companies promoting productive investment if
allocated to eligible projects under tax benefits
contracts awarded under the Tax Code for
Investment approved by Decree-Law No 2492009
of 23 September
802 ndash Senior employees of companies
11
08Other Languages Spoken
A large part of the population speaks foreign languages
especially English Spanish and French
Portugal was ranked 13th out of 70th countries in the EF
Global English Proficiency Index 2015 (13)
07EducationThere is a significant number of International Schools
throughout Portugal attended by both Portuguese and
foreign students
Portugal is ranked as the 8th best in the World according
to the U21 Rankings of National Higher Education
Systems 2016 (12)
Why Portugal
(12) - httpuniversitas21comnewsdetails220u21-ranking-of-national-higher-education-systems-2016(13) - httpwwwefeduptepi
Individuals who become resident for tax purposes in Portugal
without having been so in the previous five years
12
Staying for more than 183 days in the Portuguese territory whether these days are
consecutive or not in any 12-month period beginning or ending in a given tax year
If staying for a shorter period having in the Portuguese territory on any day of the
period referred above a dwelling under circumstances that lead to the presumption of
an intention to hold and occupy it as a place of habitual abode
Being on the 31st of December a crew member of a ship or aircraft at the service of
an entity with residence head office or effective management in Portugal
FAQ 7 How do I acquire tax residence in Portugal
FAQ 6 Who may apply for the NHR regime
Frequently Asked Questions
13
09Daily FlightsAbout 300 daily flights from Portugal
to foreign countries
Porto Airport ranks among the best
airports in Europe since 2006 (14)
10Convenient Location
for Globetrotters
Portugal ranked 1st on Globe Spots
Top 10 countries in 2013 (15)
(14) - httpwwwaciaeroAirport-Service-QualityASQ-AwardsCurrent-WinnersBest-Airport-By-RegionEurope(15) - httpwwwglobespotscombesttravelphpyear=2013
Why Portugal
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
8
06Gastronomy
The Portuguese gastronomy is as rich and
diverse as its heritage and landscapes and has
recently been internationally recognized with
14 Michelin star restaurants in 2016 (9)
Portugal is also one of the best wine tourism
destinations Our country had 578 prizes at
the 2016rsquos Decanter World Wines Awards
(DWWA) (10) and also achieved 16 Grand Gold
114 Gold and 227 Silver Medals in the 2016rsquos
Concours Mondial de Bruxelles (11)
(9) - httpportugalconfidentialcom2016-michelin-star-restaurants-in-portugal(10) - httpawardsdecantercomDWWA2016(11) - httpresultsconcoursmondialcomindexphppage=resultsampformular[ConcoursID]=59
Why Portugal
Ministerial Order nr 122010 of January 7 defined the ldquohigh value added activities of a scientific artistic or
technical naturerdquo qualifying for the regime It encompasses a wide range of professions and activities as follows
9
FAQ 5 What are considered high value added activities of a
scientific artistic or technical nature
1 - Architects engineers and similar technicians
101 ndash Architects
102 ndash Engineers
103 ndash Geologists
2 - Visual artists actors and musicians
201 ndash Theater ballet film radio and television Artists
202 ndash Singers
203 ndash Sculptors
204 ndash Musicians
205 ndash Painters
3 - Auditors
301 ndash Auditors
302 ndash Tax Consultants
4 - Doctors and dentists
401 ndash Dentists
402 ndash Analyst Doctors
403 ndash Surgeons
404 ndash Board doctors in ships
405 ndash General Practitioners
406 ndash Dentists
407 ndash Dentist Doctors
408 ndash Physiatrists
Frequently Asked Questions
10
6 - Psychologists
601 ndash Psychologists
5 - Teachers
501 ndash University professors
409 ndash Gastroenterologists
410 ndash Ophthalmologists
411 ndash Orthopaedists
412 ndash Otorhinolaryngologists
413 ndash Paediatricians
414 ndash Radiologists
415 ndash Doctors in other specialties
7 - Professional services technicians andsimilar
701 ndash Archaeologists
702 ndash Biologists and experts in life sciences
703 ndash Computer Programmers
704 ndash Consulting and computer programming and
activities related to information and computer
technology
705 ndash Computer programming activities
706 ndash Computer consultancy activities
707 ndash Management and operation of computer
equipment
708 ndash Activities of information services
709 ndash Activities of data processing hosting
information and related activitiesWeb portals
710 ndash Activities of data processing hosting
information and related activities
711 ndash Other information service activities
712 ndash Activities of news agencies
713 ndash Other information service activities
714 ndash Scientific research and development
715 ndash Research and development of science physical
and natural
716 ndash Research and development in biotechnology
717 ndash Designers
8 - Investors administrators and managers
801 ndash Investors administrators and managers of
companies promoting productive investment if
allocated to eligible projects under tax benefits
contracts awarded under the Tax Code for
Investment approved by Decree-Law No 2492009
of 23 September
802 ndash Senior employees of companies
11
08Other Languages Spoken
A large part of the population speaks foreign languages
especially English Spanish and French
Portugal was ranked 13th out of 70th countries in the EF
Global English Proficiency Index 2015 (13)
07EducationThere is a significant number of International Schools
throughout Portugal attended by both Portuguese and
foreign students
Portugal is ranked as the 8th best in the World according
to the U21 Rankings of National Higher Education
Systems 2016 (12)
Why Portugal
(12) - httpuniversitas21comnewsdetails220u21-ranking-of-national-higher-education-systems-2016(13) - httpwwwefeduptepi
Individuals who become resident for tax purposes in Portugal
without having been so in the previous five years
12
Staying for more than 183 days in the Portuguese territory whether these days are
consecutive or not in any 12-month period beginning or ending in a given tax year
If staying for a shorter period having in the Portuguese territory on any day of the
period referred above a dwelling under circumstances that lead to the presumption of
an intention to hold and occupy it as a place of habitual abode
Being on the 31st of December a crew member of a ship or aircraft at the service of
an entity with residence head office or effective management in Portugal
FAQ 7 How do I acquire tax residence in Portugal
FAQ 6 Who may apply for the NHR regime
Frequently Asked Questions
13
09Daily FlightsAbout 300 daily flights from Portugal
to foreign countries
Porto Airport ranks among the best
airports in Europe since 2006 (14)
10Convenient Location
for Globetrotters
Portugal ranked 1st on Globe Spots
Top 10 countries in 2013 (15)
(14) - httpwwwaciaeroAirport-Service-QualityASQ-AwardsCurrent-WinnersBest-Airport-By-RegionEurope(15) - httpwwwglobespotscombesttravelphpyear=2013
Why Portugal
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
Ministerial Order nr 122010 of January 7 defined the ldquohigh value added activities of a scientific artistic or
technical naturerdquo qualifying for the regime It encompasses a wide range of professions and activities as follows
9
FAQ 5 What are considered high value added activities of a
scientific artistic or technical nature
1 - Architects engineers and similar technicians
101 ndash Architects
102 ndash Engineers
103 ndash Geologists
2 - Visual artists actors and musicians
201 ndash Theater ballet film radio and television Artists
202 ndash Singers
203 ndash Sculptors
204 ndash Musicians
205 ndash Painters
3 - Auditors
301 ndash Auditors
302 ndash Tax Consultants
4 - Doctors and dentists
401 ndash Dentists
402 ndash Analyst Doctors
403 ndash Surgeons
404 ndash Board doctors in ships
405 ndash General Practitioners
406 ndash Dentists
407 ndash Dentist Doctors
408 ndash Physiatrists
Frequently Asked Questions
10
6 - Psychologists
601 ndash Psychologists
5 - Teachers
501 ndash University professors
409 ndash Gastroenterologists
410 ndash Ophthalmologists
411 ndash Orthopaedists
412 ndash Otorhinolaryngologists
413 ndash Paediatricians
414 ndash Radiologists
415 ndash Doctors in other specialties
7 - Professional services technicians andsimilar
701 ndash Archaeologists
702 ndash Biologists and experts in life sciences
703 ndash Computer Programmers
704 ndash Consulting and computer programming and
activities related to information and computer
technology
705 ndash Computer programming activities
706 ndash Computer consultancy activities
707 ndash Management and operation of computer
equipment
708 ndash Activities of information services
709 ndash Activities of data processing hosting
information and related activitiesWeb portals
710 ndash Activities of data processing hosting
information and related activities
711 ndash Other information service activities
712 ndash Activities of news agencies
713 ndash Other information service activities
714 ndash Scientific research and development
715 ndash Research and development of science physical
and natural
716 ndash Research and development in biotechnology
717 ndash Designers
8 - Investors administrators and managers
801 ndash Investors administrators and managers of
companies promoting productive investment if
allocated to eligible projects under tax benefits
contracts awarded under the Tax Code for
Investment approved by Decree-Law No 2492009
of 23 September
802 ndash Senior employees of companies
11
08Other Languages Spoken
A large part of the population speaks foreign languages
especially English Spanish and French
Portugal was ranked 13th out of 70th countries in the EF
Global English Proficiency Index 2015 (13)
07EducationThere is a significant number of International Schools
throughout Portugal attended by both Portuguese and
foreign students
Portugal is ranked as the 8th best in the World according
to the U21 Rankings of National Higher Education
Systems 2016 (12)
Why Portugal
(12) - httpuniversitas21comnewsdetails220u21-ranking-of-national-higher-education-systems-2016(13) - httpwwwefeduptepi
Individuals who become resident for tax purposes in Portugal
without having been so in the previous five years
12
Staying for more than 183 days in the Portuguese territory whether these days are
consecutive or not in any 12-month period beginning or ending in a given tax year
If staying for a shorter period having in the Portuguese territory on any day of the
period referred above a dwelling under circumstances that lead to the presumption of
an intention to hold and occupy it as a place of habitual abode
Being on the 31st of December a crew member of a ship or aircraft at the service of
an entity with residence head office or effective management in Portugal
FAQ 7 How do I acquire tax residence in Portugal
FAQ 6 Who may apply for the NHR regime
Frequently Asked Questions
13
09Daily FlightsAbout 300 daily flights from Portugal
to foreign countries
Porto Airport ranks among the best
airports in Europe since 2006 (14)
10Convenient Location
for Globetrotters
Portugal ranked 1st on Globe Spots
Top 10 countries in 2013 (15)
(14) - httpwwwaciaeroAirport-Service-QualityASQ-AwardsCurrent-WinnersBest-Airport-By-RegionEurope(15) - httpwwwglobespotscombesttravelphpyear=2013
Why Portugal
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
10
6 - Psychologists
601 ndash Psychologists
5 - Teachers
501 ndash University professors
409 ndash Gastroenterologists
410 ndash Ophthalmologists
411 ndash Orthopaedists
412 ndash Otorhinolaryngologists
413 ndash Paediatricians
414 ndash Radiologists
415 ndash Doctors in other specialties
7 - Professional services technicians andsimilar
701 ndash Archaeologists
702 ndash Biologists and experts in life sciences
703 ndash Computer Programmers
704 ndash Consulting and computer programming and
activities related to information and computer
technology
705 ndash Computer programming activities
706 ndash Computer consultancy activities
707 ndash Management and operation of computer
equipment
708 ndash Activities of information services
709 ndash Activities of data processing hosting
information and related activitiesWeb portals
710 ndash Activities of data processing hosting
information and related activities
711 ndash Other information service activities
712 ndash Activities of news agencies
713 ndash Other information service activities
714 ndash Scientific research and development
715 ndash Research and development of science physical
and natural
716 ndash Research and development in biotechnology
717 ndash Designers
8 - Investors administrators and managers
801 ndash Investors administrators and managers of
companies promoting productive investment if
allocated to eligible projects under tax benefits
contracts awarded under the Tax Code for
Investment approved by Decree-Law No 2492009
of 23 September
802 ndash Senior employees of companies
11
08Other Languages Spoken
A large part of the population speaks foreign languages
especially English Spanish and French
Portugal was ranked 13th out of 70th countries in the EF
Global English Proficiency Index 2015 (13)
07EducationThere is a significant number of International Schools
throughout Portugal attended by both Portuguese and
foreign students
Portugal is ranked as the 8th best in the World according
to the U21 Rankings of National Higher Education
Systems 2016 (12)
Why Portugal
(12) - httpuniversitas21comnewsdetails220u21-ranking-of-national-higher-education-systems-2016(13) - httpwwwefeduptepi
Individuals who become resident for tax purposes in Portugal
without having been so in the previous five years
12
Staying for more than 183 days in the Portuguese territory whether these days are
consecutive or not in any 12-month period beginning or ending in a given tax year
If staying for a shorter period having in the Portuguese territory on any day of the
period referred above a dwelling under circumstances that lead to the presumption of
an intention to hold and occupy it as a place of habitual abode
Being on the 31st of December a crew member of a ship or aircraft at the service of
an entity with residence head office or effective management in Portugal
FAQ 7 How do I acquire tax residence in Portugal
FAQ 6 Who may apply for the NHR regime
Frequently Asked Questions
13
09Daily FlightsAbout 300 daily flights from Portugal
to foreign countries
Porto Airport ranks among the best
airports in Europe since 2006 (14)
10Convenient Location
for Globetrotters
Portugal ranked 1st on Globe Spots
Top 10 countries in 2013 (15)
(14) - httpwwwaciaeroAirport-Service-QualityASQ-AwardsCurrent-WinnersBest-Airport-By-RegionEurope(15) - httpwwwglobespotscombesttravelphpyear=2013
Why Portugal
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
11
08Other Languages Spoken
A large part of the population speaks foreign languages
especially English Spanish and French
Portugal was ranked 13th out of 70th countries in the EF
Global English Proficiency Index 2015 (13)
07EducationThere is a significant number of International Schools
throughout Portugal attended by both Portuguese and
foreign students
Portugal is ranked as the 8th best in the World according
to the U21 Rankings of National Higher Education
Systems 2016 (12)
Why Portugal
(12) - httpuniversitas21comnewsdetails220u21-ranking-of-national-higher-education-systems-2016(13) - httpwwwefeduptepi
Individuals who become resident for tax purposes in Portugal
without having been so in the previous five years
12
Staying for more than 183 days in the Portuguese territory whether these days are
consecutive or not in any 12-month period beginning or ending in a given tax year
If staying for a shorter period having in the Portuguese territory on any day of the
period referred above a dwelling under circumstances that lead to the presumption of
an intention to hold and occupy it as a place of habitual abode
Being on the 31st of December a crew member of a ship or aircraft at the service of
an entity with residence head office or effective management in Portugal
FAQ 7 How do I acquire tax residence in Portugal
FAQ 6 Who may apply for the NHR regime
Frequently Asked Questions
13
09Daily FlightsAbout 300 daily flights from Portugal
to foreign countries
Porto Airport ranks among the best
airports in Europe since 2006 (14)
10Convenient Location
for Globetrotters
Portugal ranked 1st on Globe Spots
Top 10 countries in 2013 (15)
(14) - httpwwwaciaeroAirport-Service-QualityASQ-AwardsCurrent-WinnersBest-Airport-By-RegionEurope(15) - httpwwwglobespotscombesttravelphpyear=2013
Why Portugal
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
Individuals who become resident for tax purposes in Portugal
without having been so in the previous five years
12
Staying for more than 183 days in the Portuguese territory whether these days are
consecutive or not in any 12-month period beginning or ending in a given tax year
If staying for a shorter period having in the Portuguese territory on any day of the
period referred above a dwelling under circumstances that lead to the presumption of
an intention to hold and occupy it as a place of habitual abode
Being on the 31st of December a crew member of a ship or aircraft at the service of
an entity with residence head office or effective management in Portugal
FAQ 7 How do I acquire tax residence in Portugal
FAQ 6 Who may apply for the NHR regime
Frequently Asked Questions
13
09Daily FlightsAbout 300 daily flights from Portugal
to foreign countries
Porto Airport ranks among the best
airports in Europe since 2006 (14)
10Convenient Location
for Globetrotters
Portugal ranked 1st on Globe Spots
Top 10 countries in 2013 (15)
(14) - httpwwwaciaeroAirport-Service-QualityASQ-AwardsCurrent-WinnersBest-Airport-By-RegionEurope(15) - httpwwwglobespotscombesttravelphpyear=2013
Why Portugal
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
13
09Daily FlightsAbout 300 daily flights from Portugal
to foreign countries
Porto Airport ranks among the best
airports in Europe since 2006 (14)
10Convenient Location
for Globetrotters
Portugal ranked 1st on Globe Spots
Top 10 countries in 2013 (15)
(14) - httpwwwaciaeroAirport-Service-QualityASQ-AwardsCurrent-WinnersBest-Airport-By-RegionEurope(15) - httpwwwglobespotscombesttravelphpyear=2013
Why Portugal
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
Registering as a tax resident in Portugal is a requirement to obtain the non-habitual resident status
which means that those wishing to apply for the regime generally must
i register as non-resident taxpayers
ii obtain residence permits (for non-EU nationals) and residence cards (for EU nationals)
iii register as tax residents and
iv only then apply for the non-habitual resident status
14
FAQ 8What is the procedure to register as tax resident in Portugal
Frequently Asked Questions
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
15
11Sports
Top conditions for sports (sailing diving biking trekking
horse riding golf - with some of the best World courses (16))
(16) - httpworldgolfawardscomawardworld-best-golf-destination2015
Why Portugal
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
An application must be submitted until March 31st of the tax year following that in which Portuguese tax residence
is acquired This application is addressed to the Director of the Taxable Persons Registration Service (Serviccedilos de
Registo de Contribuintes)
From August 2nd 2016 onwards the applications have to be submitted on the tax authoritiesrsquo website
Moreover individuals must submit a statement whereby they solemnly declare that they have not fulfilled the
criteria necessary for being considered a Portuguese tax resident during the preceding five years
16
Non-habitual resident individuals may enjoy such status for a ten-year period after which they will be taxed under
the standard IRS regime
FAQ 10For how long may I enjoy the NHR status
FAQ 9How do I apply for the NHR status
Frequently Asked Questions
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
17
Value for money in real estate investments (which
have undergone significant decreases since 2008)
12Investments
In comparison with other major European
countries Portugal is highly affordable (17)
13Cost of Living
(17) - httpwwwnumbeocomcost-of-livingcountry_resultjspcountry=Portugal
Why Portugal
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
18
After obtaining the non-habitual resident status it will be necessary to file annual tax returns in Portugal stating
the worldwide income and expenses for which adequate documentation keeping is required
FAQ 11Once I have the NHR status what are my tax obligations
Frequently Asked Questions
The NHR status is granted for a ten-year period The particular features of the NHR regime may always be amended by law
for better or for worse even for those who have been granted NHR status prior to the enactment of any change (although
in such cases the degree of change to the regime which is admissible under Portuguese constitutional law is very
debatable) This regime was implemented in 2009 by a Socialist party (center-left wing) government and since then it has
remained stable The last government coalition of Social Democrats party and Christian Democrat Peoplersquos party (center-
right wing) has not materially changed the regime The general perception is of its widespread acceptance by the
community in general and by the main political parties The only relevant adverse change to the regime was the
enforcement in 2011 and from 2013 onwards of a 35 surcharge to employment or independent personal services
income deriving from high value added activities of a scientific artistic or technical nature obtained by NHR residents
liable to autonomous taxation at a special 20 flat rate a measure which is expected to be abolished in the middle run
FAQ 12For how long are the benefits of the regime granted
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
19
Portugal has a high quality
health system offering
both public and
private healthcare
14Health System
For instance according to the
2016 OECD Health Statistics
the average life
expectancy in Portugal in 2014
was 812 years (18)
(18) - httpstatsoecdorgindexaspxDataSetCode=HEALTH_STAT
Why Portugal
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
A change to the NHR regime could happen but it is not likely as the regime was introduced in 2009 by a government
of the same center-left wing party (ldquoPartido Socialistardquo) which is now in government with the support of other
(more) left-wing parties Additionally there is currently no public debate or controversy surrounding the NHR regime
and no changes to it have been included in the Government Program approved by parliament (available at
httpwwwportugalgovptmedia18268168programa-do-xxi-governopdf see pages 230 to 234 on tax matters)
The current Socialist party Government has just declared the intention to revise the list of high value added activities
In any case if such change happens
i Even if NHR status is abolished it cannot be taken away from those that already have it at the time the change is
approved
ii Although the NHR status cannot be taken away the regime could be made less attractive (reducing the scope of
the exemptions for instance) even for those that have obtained it in the past To what extent such change could be
made is very debatable under Portuguese administrative and constitutional law Some changes would always be
admissible but in principle a change that would make the NHR regime purely nominal (making NHR and normal
residents taxed in the same way or with only very minor differences) should not be allowed Assessing the degree of
change that is allowed is very difficult 20
FAQ 13Can the NHR regime change
Frequently Asked Questions
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
21
15Economic Progress
Successful conclusion of the Troikarsquos (International Monetary
Fund European Central Bank and European Union) financial
assistance program (2011-2014) on May 17 2014
16Political Stability
Portugal is a developed
democracy with political and
social stability
Why Portugal
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
22
Frequently Asked Questions
Firstly the likelihood of a unilateral termination of an existing DTT is very reduced A renegotiation of DTTs in force
between Portugal and other States is currently an issue with two Nordic countries and is driven by the double non-
-taxation of private pensions allowed by the combination of the NHR regime with DTTs following the OECD Model Tax
Convention In the case of Finland that led its Government to request an amendment to the private pension article of the
DTT which was already accepted by the Portuguese Government Sweden has also expressed the desire to revise the same
provision in its DTT with Portugal and negotiations are expected to begin soon These amendments will in principle allow
Finland and Sweden as source States of private pensions to impose tax on them (Swedenrsquos existing DTT with Portugal
already allows Swedish taxation on disbursements under the Swedish Social Security legislation paid to Portuguese tax
residents) However it is important to realize that the amendment (Finland) or possible amendment (Sweden) of a DTT
does not mean that Portugal will unilaterally change its domestic NHR regime namely by starting to impose tax on foreign-
sourced pension income Currently no other State has publicly signaled a will to revise its DTT with Portugal
FAQ 14How does the termination or renegotiation of a double tax treaty(DTT) between Portugal as my residence State and an incomesource State affect the NHR regime
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
23
17Peaceful Country
According to the 2016primes
Global Peace Index Portugal
ranks 5th out of 163
countries (19)
(19) - httpstaticvisionofhumanityorgsitesdefaultfilesGPI20201620Report_2pdf
Why Portugal
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
24
Frequently Asked Questions
FAQ 15Am I required to provide proof of Portuguese tax residence
As explained in FAQ 7 above there is more than one way to acquire Portuguese tax residence The 184-day rule is
not mandatory as long as one has in the Portuguese territory a dwelling under circumstances that lead to the
presumption of an intention to hold and occupy it as a place of habitual abode The Portuguese tax residence in
principle will not be challenged by the Portuguese Tax Authorities However it could be challenged by an income
source State especially if one spends time in that State In this regard a number of precautions are advisable a)
keeping a calendar that tracks onersquos days of stay in Portugal and in other countries b) avoiding short-term rentals
and frequent address changes within the Portuguese territory from the moment one becomes a tax resident herein
c) ask for invoices with the Portuguese tax number (NIF) on a recurring basis when one acquires productsservices in
Portugal The latter will allow the individual (i) to better prove hisher effective presence in Portugal if challenged
(ii) to benefit from certain deductions on the Portuguese tax assessment if heshe has taxable income at standard
tax rates and (iii) also make himher eligible for a State lottery
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
25
18Portuguese Passport
Citizenship
If the head of the household qualifies for residency
in Portugal all the dependents will automatically
qualify so with no any additional costs
Moreover Portugal has one of the worlds most
valuable passports (20) and the Portuguese
Citizenship was ranked as the 16th most valuable in
the World by Quality of Nationality Index (QNI) (21)
(20) - httpswwwpassportindexorgbyRankphp(21) - httpsnationalityindexcom
Why Portugal
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
26
Frequently Asked Questions
As of November 2015 the Socialist party with the parliamentary support of three far-left parties (the Left Block the
Communist and the Green parties) has formed a new government The Socialist party has proposed in its electoral
program the reintroduction of inheritance taxation between spouses and direct line descendants for ldquohigh valuerdquo estates
(in principle those with a taxable value above 1 million Euros with a rate of 28 applying to the surplus) but ldquotaking into
account the need to avoid phenomena of multiple inheritance taxationrdquo It is therefore likely that a mild form of
inheritance taxation may be re-introduced in Portugal but it is not clear how it will target NHR residents with non-
Portuguese assets due to the caveat in commas Accordingly changes to inheritance taxation (which is currently very
generous as inheritance between direct family is exempt assets outside Portugal are not taxable and when tax is due on
Portuguese assets it is so at a low rate - 10) seem much more likely than a change of the NHR regime as the Government
Program intends to tax the cases that are now exempt (most notably in inheritances between direct family) However the
relevant aspects remain fully uncertain (for instance if foreign assets will or not be taxed if donations will or not be taxed
in the same way as inheritances how should the euro 1000000 be valued etc) RPBA will monitor these developments
FAQ 16What about Gift and Inheritance Taxation in Portugal
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
The Portuguese NHR Regime
For more information on our Residence Planning Services please visit our
microsite wwwnonhabitualtaxresidentcom or scan the below QR code with your
smartphone
Should you require further information on this issue please check our Information
Note on this subject available at httpwwwslidesharenetRPBAthe-non-habitual-tax-
resident-regime-rpba30102014
27
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
The Portuguese NHR Regime
Proper legal advice is recommended before any decision is taken
to become a Portuguese tax resident and more so if one wishes
to take full advantage from the NHR status RPBA has an in-
depth knowledge and expertise on this regime
To book a consultation or to obtain our professional fees on this
subject please e-mail us (Ricardo da Palma Borges and Marta
Carmo) ricardorpbapt martarpbapt
28
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
29
General warning disclaimer copyright and authorised use
In the preparation of this presentation every effort has been made to offer current correct and clearlyexpressed information However the said information is intended to afford general guidelines only Thispresentation reflects information current at 4 May 2017
This presentation is distributed with the understanding that RICARDO da PALMA BORGES amp ASSOCIADOSSOCIEDADE DE ADVOGADOS SP RL is not responsible for the result of any actions taken on the basis ofinformation herein included nor for any errors or omissions contained herein
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is not attemptingthrough this work to render legal or tax advice and the information in this presentation should be used as aresearch tool only and not in lieu of individual professional study with respect to client legal matters
Portuguese domestic legislation foreign legislation EU Directives and tax treaties have anti-abuseprovisions and each actual client structure should be analysed taking those into account
RICARDO da PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RL is the copyright ownerof this presentation and hereby grants you a non-exclusive non-transferable license to use this presentationsolely for your internal business provided that you do not modify its content in any way and that you do notretain any copyright or other proprietary notices displayed on such content You may not otherwisereproduce modify distribute transmit post or disclose the content on this presentation without RICARDOda PALMA BORGES amp ASSOCIADOS SOCIEDADE DE ADVOGADOS SP RLrsquos prior written consent
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
Recent Tax Recognition
Chambers amp Partners ndash Ricardo Band 2 RPBA Band 3 (2017 2016) and Ricardo Band 1 RPBA Band 3 (2015 2014 2013)
Legal 500 ndash Ricardo and Bruno are Recommended Lawyers RPBA Band 3 (2017 2016 2015 2014 2013)
World Tax ndash Ricardo mentioned RPBA Tier 3 (2017 2016 2015 2014)
Best Lawyers ndash Ricardo recognised as Tax Law Lawyer of the Yearrdquo (2017) and ranked under the Tax Law practice area and the Tax
Planning subspecialty (2016 2015 2014 2013 2012 2011)
Corporate LiveWire - Ricardo da Palma Borges chosen as the winner of the Finance Award for Tax Lawyer of the Year ndash Portugal
(2017) Ricardo da Palma Borges chosen as the winner of the Finance Award for Excellence in Tax Planning ndash Portugal (2016)
World Transfer Pricing ndash Ricardo mentioned RPBA Tier 3 (2016)
Whorsquos Who Legal ndash Ricardo ranked as a top lawyer in the Corporate Tax Lawyers directory (2016 2013)
Expert Guides ndash Ricardo da Palma Borges recognised in the ldquoTaxrdquo edition of the Expert Guides which annually identifies the best tax
lawyers in each country (2016)
Global Law Experts ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2017) RPBA Tax Law Firm of the Year in Portugal (2016)
Tax Directors Handbook ndash Ricardo mentioned RPBA Tier 3 (2015)
Corporate Intl - RPBA Boutique Tax Law Firm of the Year in Portugal (2016)
Corporate Intl Magazine Legal Award ndash RPBA Boutique Tax Law Firm of the Year in Portugal (2014)
Acquisition International Tax Award ndash RPBA Portuguese Tax Law Boutique Firm of the Year (2015)
Acquisition International Legal Award ndash RPBA Boutique Law Firm of the Year ndash Portugal (2014)30
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15
(+351) 212 402 743
geralrpbapt
wwwrpbapt
wwwlinkedincomcompanyrpba
wwwslidesharenetrpba
15