New residents in Portugal (those who arrived between 1 January to 31 December 2013) need to submit their applications for the non habitual residence scheme by the 31 March. If not done the benefits are permanently lost.

The scheme´s main benefit is that it limits the Portuguese tax liability to a maximum  of 20% to  the main items of income arising in Portugal.

Foreign Pension income under this scheme is tax free.
See Non Habitual Residence Scheme for further details.