Potential settlers to Portugal in 2023 can still claim tax relief as non-permanent residents.

The tax regime for non-resident non-ordinary residents (NHR), which describes a special tax status in Portugal designed to attract foreigners and retirees wishing to live and work in the country, could undergo some changes in 2024 as part of the proposed 2024 State Budget law.

According to local media in Portugal, the PS party will support the proposal to amend the law and introduce a transitional regime for this category in 2023. The initiative is a response to concerns and potential negative effects on workers, retirees and investors planning to move to Portugal during this period, SchengenVisaInfo.com.

reports

The Socialist government still in power was intent on redirecting these tax breaks to research and innovation, excluding many professionals, investors and families.

The end of the NHR has caused a wave of concern among economists and professionals from all sectors in Portugal, including real estate.

It is important to create a transitional regime that will protect the legitimate expectations of people who have already decided to immigrate or return to Portugal, otherwise it could damage the confidence of those who have made the same decision, as moving to another country inevitably has a very real impact on anyone's life.

The PS proposal includes a transition mode

This has already been provided for by the government and will also apply to those who have already registered as NHRs or meet the requirements to enter the regime by the end of this year. This means that families providing sufficient evidence that they have prepared their move to Portugal in 2023 will also be covered by this regime.

In the document, the Socialist Party explains that its intention under the new changes is to strengthen the transitional regime and ensure citizens from this category who take real steps to change their tax residency to Portugal and protect them, based on the regime that expires with the State Budget proposal for 2024.

This means that anyone who wishes to take advantage of the NHR program in 2023 will be able to do so by planning their move to Portugal during this year and providing the necessary documents, including the promise of an employment contract signed in Portugal before the end of the year, a lease or other agreement granting the right to use real estate in Portugal before October of this year.

In addition, enrollment or registration of dependents in educational institutions within Portugal until October, and a valid visa or residence permit that is valid until December 21, 2023.