You might still be able to benefit from the NHR tax breaks in 2024

Can prove you have been planning to move to Portugal during 2023? Then a new proposal by the PS Political party could mean that you will still be able to benefit from NHR tax breaks until December 31, 2024

The recently proposed law, which is currently still in office, for the State Budget for 2024 (OE2024), includes a measure to end the tax regime for non-habitual residents (NHR) .The initial idea was to redirect these tax incentives to the field of scientific research and innovation. This prospected end of the NHR  has, understandably, generated a wave of concern among economists and professionals from various sectors, including real estate.

However, the PS party is presenting a proposal to amend the document to extend the transitional regime for NHRs in 2024 not only to those that have already registered with AT as an NHR, or met the conditions to join the regime by December 31st 2023 but also to families who prove they have prepared their move to Portugal during 2023. ” It is important to create a transitional regime that allows the legitimate expectations of people who have already made the decision to immigrate or return to Portugal to be safeguarded, under penalty of damaging trust of those who made the same decision, with changing country naturally having a very material impact on anyone’s life”, they say in the explanatory note of the proposed amendment to OE2024.

How can you prove your intention?

The idea of the PS Party, is to “strengthen the transitional regime, allowing the legitimate expectations of citizens who have already undertaken a set of material steps to change their tax residence to Portugal to be safeguarded, based on the regime whose validity ends with the proposal of the State Budget law for 2024”, they explained in the document.

The proposal explains that anyone who wants to benefit from the NHR until December 31, 2024, can do so, as long as they present one of the following documents that prove the existing planning of their move to Portugal:

• Promise of an employment contract signed until December 31, 2023, whose duties must take place within national territory;
• Lease contract or other contract granting the use or possession of property in Portuguese territory concluded until October 10, 2023;
• Reservation contract or promissory contract for the acquisition of real rights over property in Portuguese territory concluded by October 10, 2023;
• Enrolment or registration for dependents, at an educational establishment domiciled in Portuguese territory, completed by October 10, 2023;
• Residence visa or residence permit valid until December 31, 2023;
• Procedure, initiated by December 31, 2023, of granting a residence visa or residence permit, with the competent entities, in accordance with the current legislation applicable to immigration matters, namely through the request for an appointment or actual appointment for submission of the request for the granting of a residence visa or residence permit or, also, by submitting the request for the granting of a residence visa or residence permit.