Portugal’s Prime Minister Antonio Costa hinted at the potential end of the Non-Habitual Residency (NHR) tax scheme during a recent CNN Portugal interview, suggesting it “may be phased out by 2024.”
Is NHR Ending? The discontinuation of the NHR scheme is probable given the current political trend and the Prime Minister’s past decisions. However, a final decision awaits the conclusion of the legislative procedure.
Timeline for NHR’s Conclusion: The NHR might not end immediately on January 1, 2024. A mid-to-late 2024 cessation is more likely, though an early 2024 discontinuation remains possible.
Potential Modifications: The NHR might not vanish entirely. Past policy reversals, such as with the golden visa program, suggest potential modifications. The scheme’s focus on tax breaks for pension incomes may undergo changes to retain essential benefits.
Current NHR Beneficiaries: Changes to the NHR may not impact current beneficiaries. Prime Minister Costa emphasised that existing statuses would be maintained.
Legal Residents in Portugal: Legal residents without NHR status are advised to apply soon to safeguard against potential alterations.
Non-Legal Residents: It’s crucial to hasten the legal residency process due to uncertainties.
Considering Relocation to Portugal? To potentially benefit from the NHR scheme, swift action is advised.
Planning Ahead is Vital: Portugal Pathways urges everyone, including current NHR beneficiaries, to get timely advice and to plan accordingly for potential changes.
Source: ThePortugalNews