The Portuguese non habitual resident status offers favourable taxation of foreign income, with exemption of taxation in Portugal and a possible double exemption when a Double Taxation Agreement applies.
This regime is highly advantageous for individuals receiving foreign pensions. Those who declare foreign income can also benefit from preferential treatment such as business or professional income interest and dividends.
Income from high value added activities benefits from a special reduced tax rate of 20 percent.
To access this regime you must be a Portuguese tax resident and must not have been resident in Portugal during the previous five years. This status can be maintained for up to ten years.