This regime was created by the Decree n. º 249/2009, 23rd September.

For the purpose of the regime in question, taxable persons who, having not been Portuguese tax residents in the last 5 years, become tax residents and, expressly, require such status are considered non-habitual residents.

In order to claim a similar status, the Non-Habitual Tax Regime applicant does not need to invest in or purchase any property in Portugal, just to be considered by Portuguese legislation as a resident in Portugal is enough and for this purpose, it is only necessary to be considered resident for the purposes of Article 16.º of the IRS Code.

The taxpayer recognised as a non-habitual resident acquires the right to be taxed as such for 10 consecutive years, starting from and including the year of their registration as a Portuguese resident.

The benefits of this Non-Resident Fiscal Regime cover various income categories, but depend, specifically on whether or not a treaty for the avoidance of double taxation is in force between Portugal and the Non-Resident's Country of origin. 

In any case, it is necessary to state the following:
a) With regards to income obtained in Portugal, and concerning work for others or  business and professional activities, which has been recognized as an added high value  by Order n.º 12/2010, de 7 de Janeiro, they shall be taxed in Portugal at the special rate of 20%.
b) With regards to foreign-source income which, however, should be taxed in Portugal , the non-habitual residents may be eligible for a total exemption from taxation in Portugal or if not, they may opt the  international double taxation tax credit system.

 Note: The above information is not intended to provide any clarification and/or legal advice, nor can it be understood in such a way. It is only intended to briefly disclose/publicise the realities in question although the analysis and classification of the particular case should be done by an appropriate professional, in particular, a lawyer or a solicitor.