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NHR Transitional Rules: Who Still Qualifies After the 2024 Closure
Understanding the transitional provisions for the Non-Habitual Resident regime after its closure to new applications, and who can still benefit from the tax advantages.
Although the Non-Habitual Resident (NHR) regime closed to new applications at the end of 2023, important transitional provisions allow certain individuals to still access these tax benefits.
Transitional Categories
The following groups may still register for NHR benefits:
Already in Process
- Those who registered as tax residents before January 1, 2024
- Individuals who had pending visa or residence permit applications submitted before December 31, 2023
Employment-Based Exceptions
- Individuals with signed employment contracts dated before January 1, 2024
- Those with formal job offers documented before the deadline
Property-Based Exceptions
- Property owners who signed purchase contracts (promissory or final) before October 1, 2023
- Those with active rental agreements signed before the same date
Proving Eligibility
Documentation requirements include:
- Dated contracts and agreements
- Proof of payments or deposits made
- Correspondence demonstrating intent to relocate
- Visa application receipts with timestamps
NHR Benefits Reminder
Qualifying individuals receive:
- 20% flat rate on Portuguese-source employment income from high-value activities
- Potential exemption on foreign-source income (depending on income type and treaty coverage)
- Benefits apply for 10 years from registration
Those who may qualify under transitional rules should consult with tax professionals to ensure proper documentation and registration.