The New NHR Tax Incentive for Scientific Research and Innovation
This new regime, often referred to as NHR 2.0, will apply to taxpayers who fulfil three essential conditions:
– Become tax residents in Portugal
– Have not been tax residents in the previous five years
– Earn income in certain professional categories
The eligible professional careers include:
– Higher education teachers and researchers as well as professionals from recognized technology and innovation centers;
– Qualified jobs and members of governing bodies;
– High qualified professions in the areas of finance and economics;
– Professionals in companies with a history of tax support for investment and in industrial and service companies that export significantly;
– Qualified jobs and members of governing bodies in entities recognized by AICEP, EPE or IAPEI, IP;
– Research and development jobs, especially for doctoral graduates.
The tax advantages associated with this scheme:
– Special rate of 20% on professional income (employment contract or provision of services)
– Exemption from taxation on income earned abroad, except for pension income, provided that there is effective taxation in the country of income.
This special regime will be available for a period of 10 consecutive years, provided that the beneficiaries remain tax residents in Portugal and continue to earn income from eligible activities.
This regime does not apply to those who already benefited from the NHR regime or opted for taxation under the Ex-Residents regime.
The only exceptions are pensions, which will be taxed in Portugal, and income earned in blacklist countries.
Preliminary general requirements:
Staying in Portugal for more than 183 days, consecutive or interpolated, in any 12-month period beginning or ending in the year in question, or having staying for less time, own a dwelling in Portugal, on any day of a 12-month period, with the conditions to presume a current intention to maintain and occupy it as a habitual residence and also not have been considered a tax resident in Portugal in any of the five years prior to the date on which you became a tax resident in Portugal.
Specific requirements:
– Jobs and board members in entities certified as startups
– Jobs or other activities carried out by tax residents in the Autonomous Regions of the Azores or Madeira, under the terms to be defined by regional legislative decree.
– Teaching in higher education and scientific research
– Qualified jobs and board members within the scope of contractual benefits for productive investments, under the terms of the Investment Tax Code.
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