The deadline is fast approaching to register in the non habitual resident’s scheme (NHRS) for those who became resident in Portugal during 2014 (including previous Portuguese emigrants returning from abroad). The deadline to submit the application to be integrated in the scheme is 31 March, 2015. If this deadline is missed then you cannot benefit from the tax exemption provided in the legislation.

Briefly the benefit as it applies to pensioners, is that non government pensions from abroad are tax free for a period of 10 years(usually government pensions are taxable in the paying country). There are benefits applicable to other new residents and returning emigrants who are working if they fulfil the requirements of the so called high value professions (for example, engineers, architects, IT professionals, etc.) and the income is from a foreign source – though each case should be analysed beforehand

The basic requirement to enter into this scheme, is that the new resident has not ever been a resident of Portugal or if he has previously been a resident, has been absent for a period of 5 years or longer.