The end of the tax regime for non-habitual residents (NHR) is one of the measures included in the proposed law for the State Budget for 2024 (OE2024). But now, the PS party is presenting a proposal to amend the document to create a transitional regime for NHRs next year, in order to take care of the case of workers, retirees or investors who prove that they have prepared their move to Portugal during 2023, by presenting an employment contract, rental contract or even the purchase and sale of a property.

According to a report by idealista, the initial idea of the Socialist Government, which is currently still in office, was to redirect these tax incentives to the field of scientific research and innovation, a much more restricted aspect, which leaves out many professionals, families and investors. It turns out that the end of the NHR has generated a wave of concerns among economists and professionals from various sectors, including real estate.

Now, the PS party believes “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.

Therefore, this PS proposal extends the transitional regime already foreseen by the Government, which only applied to those who had already registered with the AT as an NHR or met the conditions to join the regime by December 31st of this year. Now, families who prove they have prepared their move to Portugal during 2023 are also covered.

How can you prove your intention?

The idea of the Socialist Government 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 further explain in the document.

Therefore, 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 prior planning of their move to Portugal, explains the same proposal:

  • 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.


Related article: End of NHR tax relief for non habitual residents in Portugal