As the world becomes increasingly digital, more and more people are adopting a nomadic lifestyle, working remotely from all corners of the globe. If you’re a digital nomad, you’re probably familiar with the unique challenges and opportunities that come with this lifestyle. One of the biggest challenges is figuring out how to handle taxes. That’s where NHR comes in.
Non-habitual resident Portugal, is a special tax status available to individuals who become tax residents. This program was introduced in 2009 as part of Portugal’s efforts to attract foreign investment and promote economic growth. NHR is particularly beneficial for digital nomads, as it offers significant tax advantages for those who earn income outside of Portugal.
If you are a digital nomad who is considering relocating to Portugal, you may want to consider applying for NHR status. This could be an excellent way to save money on your taxes while enjoying all that Portugal has to offer. The NHR status is available to individuals who have not been tax residents in Portugal during the last five years. If you meet this requirement, you may be eligible to apply for NHR status.
What are the advantages of NHR?
Under NHR, eligible individuals can enjoy a flat tax rate of 20% on certain types of income earned outside of Portugal. This includes income from self-employment, royalties, dividends, and capital gains. Additionally, certain types of income, such as pensions and employment income earned in Portugal, may be exempt from taxation altogether. This can result in significant tax savings for digital nomads who earn most of their income from sources outside of Portugal.
To be eligible for NHR, you must meet certain requirements. First and foremost, you must become a tax resident of Portugal. This means that you must spend at least 183 days per year in Portugal or have a permanent home in Portugal. Additionally, you must not have been a tax resident of Portugal in the previous five years. Finally, you must be able to prove that you have not engaged in any professional activity in Portugal in the previous five years.
If you meet these requirements, you can apply for NHR and enjoy the many benefits it offers. One of the biggest advantages of NHR is that it provides clarity and certainty when it comes to taxes. As a digital nomad, you may be working with clients from all over the world, and navigating the complexities of international tax law can be daunting. NHR simplifies the process and allows you to focus on your work without worrying about the tax implications.
Another advantage of NHR is that it can help you save money on taxes. Digital nomads often struggle with high tax rates and complex tax codes, but NHR can significantly reduce your tax burden. By taking advantage of the flat tax rate and exemptions available under NHR, you can keep more of your hard-earned money and reinvest it in your business or your travels.
Overall, NHR is an excellent option for digital nomads who are looking for a simple and effective way to handle their taxes. By becoming a tax resident of Portugal and taking advantage of the many benefits offered under NHR, you can enjoy greater clarity, simplicity, and savings when it comes to taxes. So if you’re a digital nomad who is tired of navigating the complexities of international tax law, consider applying for NHR and taking your business to the next level.
How to get NHR quickly and easily
At e-Residence, we offer a registration service that can help you apply for NHR status. Our legal team will prepare and submit your application, saving you time and money on legal fees. With more than 20 years of experience in tax consultancy, our tax experts are specialists in IRS, non-habitual residence, personal income taxes, and social security regimes. We can help you make informed decisions, run estimates, file returns and other reporting obligations, and ensure that you are fully compliant and always in a timely fashion.
To apply for NHR status, you will need to provide certain documents. These include a European Union passport or residence permit in Portugal, proof of fiscal address in Portugal (your own residential property or rent contract registered in Tax Authorities of Portugal), and a Portuguese tax identification number (NIF). You will also need to provide a bank statement for a minimum of EUR 9,500, which is relevant for the day of your appointment (1-2 days before), in order to obtain a Certificado do Registo de Cidadão da União Europeia (CRUE), which is required for the NHR application.
Our NHR registration service includes support from our legal department throughout the process. The price of this service is €699, which includes a consultation with a tax adviser. This service is designed to save you months of time and a large amount of money that would be spent on legal fees.
In conclusion, if you are a digital nomad considering relocating to Portugal, you should consider applying for NHR status. At e-Residence, we offer a registration service that can help you apply for NHR status, saving you time and money on legal fees. With our help, you can enjoy all that Portugal has to offer while minimizing your tax liability.
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