Portuguese Government Announces Termination of NHR Scheme

LAGOS, Portugal - Dec. 16, 2023 - PRLog -- In a surprising development, the Portuguese government declared in early October 2023 the discontinuation of the Non-Habitual Resident (NHR) program, which had been offering advantageous tax benefits to individuals for a ten-year duration. This unexpected announcement, made without prior consultation, caught many off guard, as there were no prior indications of an impending change to the program.

Launched in 2009, the NHR program had been remarkably successful in attracting a significant influx of affluent foreigners to Portugal, with a predominant focus on real estate investments.

Prime Minister António Costa, in explaining the termination of the scheme, described it as "a measure of fiscal injustice that is no longer justified and represents a biased means of inflating the housing market, which has reached unsustainable price levels."

The initial announcement stirred controversy and led numerous foreign individuals, eager to take advantage of the NHR scheme, to expedite their applications and engage in hasty property acquisitions.

Subsequently, the government introduced a transition period, set to conclude at the end of December 2024. During this period, applicants must substantiate their pre-existing plans to relocate to Portugal in 2023. This can be demonstrated through property purchases (completed or in progress), signed rental lease agreements, children enrolled in Portuguese schools, or documented employment via contracts.

Existing beneficiaries of the NHR scheme need not be alarmed, as the Prime Minister has assured that current beneficiaries can retain their status.

For those who had intended to leverage Portugal's NHR scheme, immediate action is recommended. Laws Property Portugal, a trusted partner in real estate and relocation services, stands ready to assist you in your property search. We can connect you with reputable professionals who can facilitate visa applications and provide precise fiscal guidance.

For inquiries and assistance, please contact Laws Property Portugal at info@lawspropertyportugal.com.

About Laws Property Portugal: Laws Property Portugal is a leading real estate and relocation services provider in Portugal, offering expert guidance and support to individuals seeking to invest in Portuguese real estate and make a seamless transition to the country. For more information, please visit https://www.lawspropertyportugal.com/