Change is on the horizon for the NHR programme. If you've been contemplating a move to Portugal and have been sitting on the fence, this is the moment to stop what you’re doing and read on

At Triennial Properties, we consider it our privilege to keep you informed about the latest developments that might impact your decision to move to this sunny corner of the world.

Today, we bring you news that a change is on the horizon concerning the Non-Habitual Residency (NHR) programme. If you've been contemplating a move to Portugal and have been sitting on the fence, this is a crucial moment to stop what you’re doing and read on.

The NHR programme, which has been a significant draw for those seeking to relocate to Portugal, has been celebrated for its attractive tax incentives, particularly the 10% tax rate on passive income, offering a remarkable advantage to those choosing to call Portugal home. However, as with all things in life, change is inevitable, and these benefits may soon be off the table.

We understand that the decision to buy abroad is not one to be taken lightly, or in a rush, but with change on the way now is the time to press play on making the move to Portugal.

In a recent interview with CNN Portugal, the Prime Minister of Portugal, António Costa, made a significant announcement, stating that it is no longer viable to sustain the Non-Habitual Residency (NHR) regime, which has been in effect since 2009. This decision comes after weeks of intensive political debates surrounding housing issues in the country, with the NHR system being held partly responsible. This public statement marks the government's intention to put forward a proposal for discontinuing the NHR scheme.

Although nothing can be 100% certain until legislation has been passed, it appears likely that the NHR scheme will be discontinued in 2024, given the current political climate and the Prime Minister's previous decisions on other fiscal-related issues. While the potential end of NHR is on the horizon, it may not come into effect immediately on January 1st, 2024. A more likely scenario is a cessation in mid-to-late 2024. Nevertheless, an early 2024 discontinuation remains a possibility.

If you are currently benefiting from the NHR programme, there is good news. Changes to the NHR are unlikely to impact current beneficiaries, with the Prime Minister emphasising that existing statuses will be maintained, providing some stability for current beneficiaries.

Amidst these proposed changes Portugal continues to offer an attractive lifestyle, favourable tax rates, and a welcoming environment for expatriates. It remains an enticing destination for individuals and families looking to enjoy a more relaxed lifestyle in the sun away from the grey skies and the rat race of home.

If you're an NHR resident or are thinking of applying for NHR status we recommend consulting with a tax advisor or legal professional who specialises in Portuguese tax law. They can provide personalised guidance to ensure you make the most of the programme.

Our goal is to empower you with the knowledge needed to make informed choices for your future. We are here to support you every step of the way as you navigate the path of moving here and with the right information and guidance, you can make the transition with confidence.