Portugal is a country in southern Europe that borders Spain and is a member of the European Union as well as the Euro and Schengen Zone. The Portuguese economic landscape is tempting, and it has become much more so since the introduction of the Portuguese Golden Visa, which allows investors to make smart investments while also gaining EU residency. Therefore, the variety of possibilities in Portugal continues to attract the curiosity of foreign investors.

The golden visa isn’t the only incentive offered by the Portuguese government to foreign investors; they have also been granted special status for a unique tax regime for inbounds with attractive tax-saving potential. This incentive, known as Non-Habitual Residency, attracts foreigners with high value-added potentials, such as retirees, skilled workers, investors, or entrepreneurs.

What Is Non-Habitual Residency?

Non-Habitual Residency is a unique tax regime status. This residency tax benefit is available to foreign nationals who are non-habitual residents of the country, meaning they are legal residents but not tax residents.

The golden visa is a five-year residency-by-investment scheme that permits non-EU nationals and their family to live, work, and study in Portugal while residing in another country. Applicants may choose permanent residency and subsequently Portugal citizenship after the five-year period.

Advantages Of Being A Non-Habitual Resident In Portugal

• Individuals holding Non-Habitual Residency status are eligible for a ten-year special personal income tax regime. This tax exemption applies to foreign income, employment, or self-employment income derived from high-value-added activities carried out on Portuguese territories, such as directors and executives of production, services, and business companies, doctors, lecturers, engineering, IT, and other high-value-added activities.
• Visa-free travel to over 185 countries including the United States
• Education of the finest quality and world-class health care.
• Physical residency is minimal. Only a maximum of 7 days is required.
• The Portuguese passport is one of the world’s top five passports for ease of travel.
• Within the Schengen Area, visa-free travel is available.

Requirements For The Portugal Non-Habitual Residency

• There is no set age limit to apply for Portugal citizenship, anyone from any age group can apply.
• You must be of non-EU, non-Swiss, or non-EEA nationality.
• You must make a qualified investment, the most common is real estate which starts at €280,000.
• You must have no criminal convictions on your record.
• You have to have submitted a complete application.
• You must keep the money in the bank until permanent residency or citizenship.
• You are only required to spend at least 7 days in Portugal the first year and no less than 14 days every two years after that.

How The Application Process Works

• Stage 1

The process is started by acquiring the following;

• Sign Contract
• Obtain Tax Number
• Open Bank Account
• Transfer Funds
• Submit Civil Documents
• Initiate GV process

Once this process is done, they are required to visit Portugal.

• Stage 2

Issuance of EU Residency Card which is valid for 2 years.

• Stage 3

The EU Residency Card is extended, which is valid for 2 more years.

• Stage 4
  After 5 years of residency, people are able to renew their gold visas and apply for permanent Portugal citizenship.

To Conclude

Living in a wonderful country like Portugal and taking advantage of all the government perks such as top-tier education for children, world-class healthcare, and more while paying minimal taxes is a once-in-a-lifetime chance.

Carte Blanche helps you learn more about how you might qualify for the golden visa and the Non-Habitual Residency scheme. Get in touch with the team of experts now.