NHR status and new TISRI regime: 2024 changes

Barbashyn Law Team
30 January, 2024 4 min for reading
30 January, 2024 4 min for reading

Changes concerning the status of the NHR and the introduction of the TISRI regime are provided for in Law 82/2023 on the Portuguese State Budget.

Cancellation of status and transitional provisions

🔹 1. NHR holders – retain their status until the end of the 10 years provided for by the regime.

🔹 2. Persons who became tax residents of Portugal before December 31, 2023 – have the right to receive an NHR.

🔹 3. Persons who became tax residents of Portugal before 31.12.2024 and meet one of the requirements below will be entitled to receive NHR under transitional provisions:

  • A promise or employment contract signed by December 31, 2023, if the duties are performed in Portugal;
  • A rental agreement or any other agreement that provides for the use or possession of property in the territory of Portugal concluded before October 10, 2023;
  • Reservation agreement or simple agreement for the acquisition of fundamental rights to property in Portugal, signed before October 10, 2023;
  • Enrollment of dependents in a Portuguese educational institution until October 10, 2023;
  • Resident visa or residence permit valid until December 31, 2023;
  • The process of obtaining a residence visa or residence permit was initiated on December 31, 2023, through a request for an appointment or an actual appointment to submit a residence request. A visa or permit is valid until December 31, 2023.

🔹 4. Persons who become tax residents of Portugal after 01.01.2024 will not receive an NHR.

Introducing the new TISRI regime

🔹 Persons who have become tax residents and have not lived in Portugal for the previous 5 years can receive;

🔹 Subject to academic and research positions (teaching, scientific research), positions and members of governing bodies in certified startups, technology and innovation centers, activities in Madeira and the Azores, and other activities and professions, according to the list defined by the Portuguese government;

🔹 The regime cannot be obtained by former NHR holders or users of the “former residents” regime (Programa Regressar);

🔹 The regime does not apply to pensions (a progressive rate of up to 48% will be used);

🔹 The regime allows a fixed rate of 20% (instead of a progressive scale of up to 48%) to be applied to income in certain areas of activity.

Questions remain open – taxation of passive income (dividends, royalties, etc.) and foreign income within the framework of TISRI, whether activities in the field of IT are subject to the TISRI regime.

We hope that answers to these questions and clarifications on the practical application of the above provisions regarding NHR and TISRI will appear shortly.