Uncertainty Surrounding Portugal's Non-Habitual Resident (NHR) Regime

Here are the essential points related to this announcement:

1. Prime Minister's Statement: On October 2nd, the Portuguese Prime Minister announced the potential cessation of the NHR regime in 2024.

2. Lack of Clarity: The announcement did not provide a clear indication of whether the regime will be entirely discontinued or if there will be alterations and reforms to the existing system.

3. Impact on Current Beneficiaries: Taxpayers who are currently benefiting from the NHR regime will not be affected by any changes that may occur in the future. Their status and associated benefits will remain unchanged.

Recommendation for Prospective NHR Applicants:

Given the uncertainty surrounding the NHR regime's future, we recommend that individuals who are currently in the process of changing their tax residency to Portugal consider the following:

1. Anticipate the Application Process: If you are in the process of relocating to Portugal or planning to do so in the near future, it may be prudent to expedite your application for the NHR regime. By initiating the process promptly, you can secure your eligibility for the current benefits in case any changes are implemented. Please bear in mind that for EU citizens the process may take approximately 1 month, whereas for non-EU 4/5 months (residing in Portugal since 2023).

2. Stay Informed: Keep a close eye on official updates and announcements from relevant government authorities regarding the NHR regime. Be prepared to adapt your financial plans based on any new developments or regulations.

3. Seek Professional Guidance: Consult with a tax advisor or legal expert with expertise in Portuguese tax laws. They can provide personalized guidance on your specific situation and help you navigate any changes that may arise.

We understand that this uncertainty may raise concerns for those considering Portugal as their tax residency. Rest assured that we are here to assist you in any way we can and will continue to provide updates as more information becomes available.

Your financial well-being is our priority, and we are committed to helping you make informed decisions in these evolving circumstances.
If you have any questions or require further assistance, please do not hesitate to reach out to us.

Sincerely,
Westonbridge Team