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The Portuguese government, represented by Prime Minister Luís Montenegro, has recently highlighted potential drawbacks associated with discontinuing the Real Estate option in the Golden Visa, and the tax benefits for Non-Habitual Resident (NHR) programmes, as implemented by the previous government. Part of the Mais Habitação bill, which addresses the housing crisis in big cities such as Lisbon and Porto, the government led by former Prime Minister António Costa considered these programmes responsible for the increase in property values. As the nation grapples with the economic implications of these decisions, there is growing momentum towards reinstating the NHR programme in 2024, a move seen as essential for maintaining Portugal's appeal to foreign investors and expats.
Portuguese Government Wants to Reintroduce Tax Incentives for Non-Habitual Residents
The Portuguese NHR programme, initially introduced in 2009, 3 years before the Golden Visa, was designed to attract highly skilled professionals, entrepreneurs, and pensioners by offering substantial tax benefits. This initiative has been important in bolstering the Portuguese economy, drawing many affluent individuals and fostering an environment conducive to foreign investment. However, the recent termination of the programme has sparked considerable debate within governmental and business circles.
On 4th of July, during an interview with the British newspaper Financial Times, the Portuguese Minister of Finance, Joaquim Miranda Sarmento, highlighted the possibility of reintroduction of the NHR. According to the Portuguese Minister, the programme will differ from the previous one, but it will be designed to address the same problem, the return of a highly skilled workforce - active Manager, Architect, Engineer, Medical Doctor, Dentist or have another high-value profession.
According to the publication, the intent is to reinstate the NHR regime, but only for “salaries and professional income.”. The Minister phrased that “it will exclude dividends, capital gains, and pensions, which was an issue between Portugal and countries like Finland or Sweden”.
