NHR Regime applicants fall 22%

 In News, Tax

Portugal’s Non Habitual Tax Resident (NHR) tax regime, which offers attractive tax benefits to overseas relocators, saw a 22% fall in applicants on 2019.

Created in 2009, it has accumulated 51,903 adherents, many of them pensioners from the EU countries like France and the UK (before Brexit) who could retire in the sun without having to pay taxes on their pensions.
Last year, the Portuguese tax authorities (Autoridade Tributária) registered 9,166 applications which represented a fall of 22% on 2019 when there were 11,739 applications, the best year since the programme was launched.
But the number of applications for 2020 could increase since prospective applicants have until 31 March to apply for the tax year 2020.
Luís Lima, president of the Portuguese Association of Estate Agents and Real Estate Professionals (APEMIP), admitted there had been a fall in demand and in doing business which had to do with the pandemic and difficulties travelling between countries.
The French led the applicants with 9,371 according to information provided by the Ministry of Finances. The British and the Irish followed with 6,741 applicants, and the Brazilians came in third place with 6,623.
The Portuguese were also responsible for 5,102 applications since the tax regime is open to all citizens who had not been previously tax resident in Portugal. Italians were also high on the list with 5,054.