Non Regular resident status
The Investment Tax Code, created by Decree-Law n. 249/2009, approved on September 23rd, implementeda Personal Income tax system for the non-regular resident, with the purpose of attracting to Portugal non resident professionals qualified for activities with high added value intellectual or industrial propriety or knowhow,as well as beneficiaries of pension schemes granted abroad.
Who may apply for a non-regular resident status?
The non-regular resident tax regime is available for citizens meeting the following conditions:
• Deemed resident on Portuguese territory for tax purposes, according to any of the criteria defined under Art 16, paragraph 1 of the Portuguese Personal Income Tax Code (CIRS), in the year to be taxed as a non-regular resident;
• Has not been deemed resident on Portuguese territory during the five years prior to the year pretended to be taxed as a non-regular resident.
When should the citizen apply for the non-regular resident status?
Before being deemed non-regular resident, a registration as resident on Portuguese national territory should be made at a local Tax office or Loja do Cidadão. The application for a registration as non-regular resident should be submitted at the
moment of the registration as a resident on Portuguese territory or later until March 31st, of the year following the year in which one became resident on Portuguese territory.
How can a citizen register as a non-regular resident?
Request the registration by submitting an application to the Director of the Taxable Persons Registration Service (Serviços de Registo de Contribuintes), meeting the delays mentioned above.
This application should be presented together with the statement mentioned hereafter and any accompanying documents to any Tax Office, any Loja do Cidadão, or sent by normal mail to the tax registration services at the following address: Direcção de Serviços de Registo de Contribuintes, Avenida João XXI, n.º 76, 6.º, 1049-065 Lisboa.
What statement should a citizen submit when applying for a registration as non-regular resident?
When applying for a registration as a non-regular resident, a statement must be submitted proofing the non- fulfilment of the criteria necessary for being considered a resident on Portuguese territory during the five years before the date on which the taxation as non-regularhabitual resident should start, for example:
• non-fulfilment of any of the conditions described on Art.16, paragraph 1 of CIRS or
• based on the Convention for the elimination of double taxation.
What rights are granted to the non-regular resident?
A citizen deemed non-regular resident has the right to be taxed according to the nonregular resident tax scheme during a period of 10 consecutive years, from the year of the registration as a resident on Portuguese territory, as long as continues to be deemed resident in each of the 10 years. This period of 10 years is not extendable.
Please note that the right to be taxed according to the non-regular resident tax regime in each year of the above mentioned period depends on the fulfillment of the condition of being deemed resident on Portuguese territory.
Whenever the citizen has not benefited from right to be taxed according to the tax regime defined for non-regular residents in one or more years of that 10 years period, still may benefit again from that same right in any of the remaining years of
that period, provided the citizen still has a resident status for income tax purposes.