Government wants to recover tax benefits for foreigners: non-habitual resident regime may return

The Government wants to reactivate the non-habitual residents regime for self-employed and salaried workers. Anyone who stays in Portugal for at least 183 days and establishes their tax residence will once again be able to pay only 20% IRS, for a period of ten years, renewable. The news is presented by the Minister of Finance, Joaquim Miranda Sarmento, to the “Financial Times†, and will be part of the package of measures that the Minister of Economy, Pedro Reis, will present.

Created by a socialist Government in 2009, the non-habitual residents regime was extinguished by the previous Government with the argument that it was contributing to the increase in property prices in large urban areas. Even so, a transitional regime remained for those who made formal requests until the end of 2023 and another regime was created, focused on professions linked to scientific research and innovation sectors.

Now, Luís Montenegro’s intention is to recover the regime, but only for “salaries and professional income†. “It will exclude dividends, capital gains and pensions, which was a problem between Portugal and countries like Finland or Sweden,†Joaquim Miranda Sarmento told the “Financial Times†.

The measure will be part of the incentive package that Pedro Reis, Minister of Economy, is preparing to announce this Thursday and that SIC commentator LuÃs Marques Mendes called “pacotão”. It will have to be approved in the Assembly of the Republic, where the Government is in the minority.