Category: Residency

Background

“Don’t worry, I never spend more than 90 days in the UK”.

This test for UK tax residence was replaced with a statutory residence test, but it is still commonly believed that the above statement is correct.

It is not and, whilst in many cases, the test might result in an individual triggering UK tax residency without expecting it, in many other circumstances, they might have been limiting themselves to the wrong number of days.

For anyone renting or buying property in the UK and starting to spend more and more time in the UK, they should seek advice to be clear what their day pattern in the UK should or can be. This note considers a couple who have not previously been tax resident in the UK.  For more information about correctly losing UK tax residence, please see – Tax Residence Planning Opportunities – Case Studies and How To Get it Right. It also does not consider immigration but more information on how Dixcart can assist with UK Immigration can be found here – Dixcart Immigration.

Case Study

Mr Overseas has lived in Europe his whole life.  Having sold his successful overseas business a number of years ago, he took early retirement. He is not married.

Having retired, he wants to spend more time in the UK as he has nephews and nieces whom he enjoys seeing more of.

He also feels that the UK real estate market might be a good investment, so he purchases an apartment that he lives in when he is here.  It is empty the rest of the time.

Thinking he is doing some clever tax planning, he chooses to limit his days in the UK to 85-89 days, because everyone tells him that if he stays in the UK for fewer than 90 days, he won’t become tax resident. 

Mr O Should Take Some Advice!

The part of the UK statutory resident test relevant to him is part 3, the Connecting Factors.  In the first year he starts spending time in the UK, he does not have a tax resident family member, he has not exceeded 90 days in the UK in either of the two previous tax years, and he does not work in the UK for more than 40 days each tax year.  He does have available accommodation though, so he has just one Connecting Factor.  In the first year, he could spend up to 182 days in the UK without becoming UK tax resident, double what he had originally thought.

In the second year, he would still have available accommodation but also now would have spent more than 90 days in one of the previous two tax years.  His day limit is now 120 days, still more than the “90 days rule” he had been told about.

Once he discovers this, he starts spending up to 115-119 days in the UK

However – The Rules Need Constant Review

As Mr O is now spending more time in the UK, he meets someone special and gets married.  He also gets bored of early retirement and starts a consulting role for most of the days he is in the UK.

Thinking that he has now taken his UK tax advice about residence, he doesn’t think to check it again.

Mr O now has a tax resident spouse, he works for more than 40 days in the UK, he has spent more than 90 days in the UK in at least one of the last two previous tax years and he still has available accommodation.

His tax circumstances have changed dramatically and, in fact, if he wants to still remain non-resident in the UK, his day count would be capped at 45 days!

There is still planning to do though, as he might be able to claim the remittance basis as a non-domiciled individual. With the 2025 UK tax changes for non-doms and evolving rules around foreign income and gains, it’s important to understand the do’s and don’ts to ensure compliance and make informed decisions.

Summary and Additional Information

Whilst Mr O’s circumstances shifted during the course of this case study, it is interesting to note that at no point in time was Mr O’s day count cap at 90 days, despite the common belief that those are the rules for UK residence.

The remittance basis of taxation, which is available for non-UK domiciled individuals, can be a very attractive and tax efficient position, but it is crucial that it is properly planned for and properly claimed at the right time. 

If you require additional information on this topic, further guidance regarding your possible entitlement to use the UK remittance basis of taxation, and how to properly claim it, please contact your usual Dixcart adviser in the UK office: advice.uk@dixcart.com.

Dixcart UK, is a combined accounting, legal, tax and immigration firm.  We are well placed to provide these services to international groups and families with members in the UK. The combined expertise that we provide, from one building, means that we work efficiently and coordinate a variety of professional advisers, which is key for families and businesses with cross-border activities.

By working as one professional team, the information we obtain from providing one service, can be shared appropriately with other members of the team, so that you do not need to have the same conversation twice!  We are ideally placed to assist in situations as detailed in the case study above. We can provide cost effective individual and company administration services and also offer in-house expertise to provide assistance with more complex legal and tax matters.

An Introduction to Domiciliation

The Cyprus Non-Domicile regime (or non-dom) hinges on a person’s domiciliation. It is important to note that there are two kinds of domicile:

• Domicile of origin: The domicile assigned to an individual at birth.
• Domicile of choice: The domicile acquired by an individual through establishing a physical presence in a particular place, combined with the intention of making it their permanent home.

Individuals who have been tax residents in Cyprus for at least 17 out of the last 20 years will be deemed domiciled in Cyprus. Meaning, once you meet the 17-year limit, you will be considered to have a Cyprus domicile of choice.

Tax Residency

It is also important to note that the Cyprus tax regime only applies to individuals who are tax residents. Anyone looking to take advantage of the benefits under the non-dom regime must first ensure that they are a tax resident of Cyprus. You can find full details in our article on Cyprus Tax Residency.

Application, Cost and Evidence

Unlike other tax regimes around the world, the Cyprus non-dom regime has no participation cost and there is no minimum annual tax bill to be paid. In other words, there is no annual fee payable to the government in order to benefit from the advantages outlined below.

Applicants must complete the specified form and submit it along with evidence that they are tax residents of Cyprus and that their domicile of origin or choice is not Cyprus.

Once your application has been approved, you can request a certificate to confirm your tax residency and status as a non-domiciled individual. This certificate, issued by an EU member state government, can be used when required in other jurisdictions.

Benefits

Before diving into the benefits, it isworth remembering that Cyprus tax residents are taxed on their worldwide income. This means the following advantages apply to income sourced in Cyprus or remitted to Cyprus from abroad. Additionally, there are no wealth and no inheritance taxes in Cyprus, for both ordinary residents and non-doms.

Cyprus’ non-domicile status provides access to a range of highly attractive tax benefits. Individuals who qualify under the regime are exempt from income tax on the following:

• Interest
• Dividends
• Capital gains (excluding immovable property in Cyprus, which may still benefit from partial exemption on newly acquired property)

Non-doms in Cyprus also enjoy significant relief on their salaried income. Those who take up residency in Cyprus for the first time may be eligible for a 50% exemption on their salary from income tax. This is in addition to the standard 0% tax band.

To qualify for this exemption, individuals must meet the following criteria:

• Be a non-domiciled individual
• Be employed in their first job in Cyprus
• Earn an annual salary of €55,000 or more
• Be a “new resident” in Cyprus (meaning they must not have been a resident of Cyprus for a period of at least 15 consecutive tax years immediately prior to the commencement of their employment in Cyprus)

National Health Contribution

It is worth noting that both dividends and salaried income are subject to a General Health System (GHS) contribution of 2.65%, capped on income up to €180,000 per year. This means the maximum contribution is €4,770 annually. This contribution provides access to Cyprus’ excellent and comprehensive public healthcare system.

How Can We Help?

If you would like to know more about the Cyprus Non-Domicle Regime or if you have any questions about how we can help you, please contact us at the Dixcart office in Cyprus for further information: advice.cyprus@dixcart.com.

Our expert team can support you through every step, from immigration matters to tax residency and non-domicile applications. We can assist with compiling your supporting documentation, interpreting the governments forms. We will even attend the immigration office with you and can handle your annual tax return.

If you are planning to take advantage of the corporate benefits here in Cyprus as well by incorporating a company, we also offer a full range of corporate services including, but not limited to, company formation, secretarial support, and accounting services.

We provide end-to-end support at every stage, helping you successfully navigate Cyprus’ tax residency and compliance requirements, so you can make the most of Cyprus’ excellent tax benefits.

Tax Residency vs Legal Residency

Firstly, it is important to understand that tax residency and legal residency are two entirely different things and it is essential not to confuse the two.

In this article, we focus on what it takes to be considered a tax resident in Cyprus, something that has become increasingly popular thanks to several attractive schemes, such as the Cyprus Non-Dom Regime and the Flat Tax Regime For Overseas Pensions . You can find more details on these by clicking the relevant links.

The Two Tax Residency Rules

One of the key advantages of Cyprus’ tax residency system is its simplicity. There are only two rules, and no grey areas. You either meet the criteria or you do not. These are the 183-day rule and the 60-day rule.

183-day rule

This one is as straightforward as it sounds: if you legally reside in Cyprus for at least 183 days in a tax year, you are considered a tax resident, as long as you have evidence to support your stay.

60-day rule

The 60-day rule is one of the most attractive tax residency options in the world because it has such a short stay requirement. It does however come with a few additional conditions. To qualify, you must:

• Legally reside in Cyprus for at least 60 days in the tax year
• Be employed, self-employed, or a director of a company that is tax resident in Cyprus
• Own or rent a residential property in Cyprus for the whole tax year
• Not be tax resident in any other country
• Not spend more than 183 days in total in any one other country

This rule was introduced to attract business owners, consultants, and other mobile professionals who do not necessarily want or need to be based in one location year-round, but still want access to an advantageous, stable, EU-based tax residency.

This option is particularly popular with highly mobile individuals. It allows them to establish tax residency in Cyprus (and obtain a tax residency certificate) while still enjoying the freedom to travel extensively. All while benefiting from Cyprus’ fantastic tax regime.

Tracking Your Days and Proving Your Residency

As you would expect, you will need to prove how many days you have spent in Cyprus. The evidence required can vary depending on your lifestyle — someone living in Cyprus for 300 days a year will need to show different evidence than someone visiting four times a year for 15 days each time.

In addition to other documentation, the most commonly requested evidence includes:

Proof of legal residency:

• Passport or ID card
• Your immigration documentation (often referred to as the “Yellow Slip”)

Proof of days spent:

• Utility bills showing usage during the relevant periods
• Bank statements showing local spending
• For 60-day rule applicants: flight tickets proving entry and exit dates

Tax Residency Certificate

Once you are a Cyprus tax resident, either through the 60-day rule or the 183-day rule, you can request a Tax Residency Certificate. This certificate can be used in other jurisdictions to evidence your tax residency in Cyprus if needed.

How Can We Help?

If you would like to know more about Cyprus tax residency or if you have any questions about how we can help you, please contact us at the Dixcart office in Cyprus for further information: advice.cyprus@dixcart.com.

Our expert team can support you through every step, from immigration matters to tax residency applications and compiling your supporting documentation. We will even handle your annual tax return.

If you are planning to take advantage of the 60-day rule, we also offer a full range of corporate services including, but not limited to, company formation, secretarial support, and accounting services.

We provide end-to-end support at every stage, helping you successfully navigate Cyprus’ tax residency and compliance requirements, so you can make the most of Cyprus’ excellent tax benefits.

The “EU Blue Card” refers to a newly introduced residence permit allowing highly skilled, non-EU nationals to work and live in Cyprus, especially in sectors facing shortage of highly qualified personnel.  The Blue Card scheme simplifies the process for qualified individuals to work and reside in the European Union and is valid in all European countries excluding Denmark and Ireland. The EU Blue Card gives as well access to EEA Member states (Iceland, Liechtenstein and Norway).

The EU Blue Card scheme will enhance the framework for attracting highly qualified professionals, thus enabling Cyprus to further establish itself as a hub for innovation and technology. Unlimited Blue Card positions are available in the Information and Communication Technologies (ICT) sector, pharmaceutical research and maritime industry (excluding ship captains and crew).

The Cyprus Migration Department has announced that as of 7 July 2025, applications for an EU Blue Card can be submitted for examination.

Who Qualifies for an EU Blue Card?

In order for a non-EU national to apply for a Blue Card, the below must be met:

• a valid employment contract or binding job offer of at least six (6) months in the Republic of Cyprus for a highly skilled employment in the ICT sector, pharmaceutical sector (for research purposes) or the maritime sector.
• higher education qualifications following studies of at least three (3) years, while professionals in the ICT sector must have a minimum of three (3) years’ professional experience within seven (7) years preceding the EU Blue Card application
• the Cyprus authorities have set a minimum annual gross salary of €43,632. In practice, the law provides that the gross annual salary should not be lower than the set national minimum wage and should be at least equal to the average gross annual salary of Cyprus
• Valid health insurance coverage

Application Procedure & period of validity

The application procedure is quite simple.

The Department of Labour must verify the employment contract and qualifications and then the Blue Card application and required documents must be submitted to the Civil Migration Department

If approved by the authorities, the Blue Card is issued with a minimum validity of 24 months, with the possibility to apply for a renewal within three (3) months before its expiry. as long as conditions are met.

EU Blue Card: Key Benefits

• Blue Card holders are granted the right to work in high-demand professions with competitive salaries comparable to those of EU nationals.
• Right of residence in Cyprus for up to 3 years, renewable upon expiry
• Family members of non-EU nationals have the right to apply for residence in the Republic of Cyprus through the family reunification process and are guaranteed access to any kind of employment, including self-employment, in accordance with Cypriot legislation.
• Blue Card holders enjoy the same working conditions, educational opportunities, social security benefits, and access to services as the host country’s citizens.
• Cardholders can travel visa-free across EU member states and relocate to another EU country for work (for a period of up to 90 days within a period of 180 days, without requiring a visa)  after 12 months of residence in the issuing country.
• Blue Card holders can apply for long-term residence after 33 months and for citizenship after five years, provided they meet certain conditions such as language proficiency and pension contributions.

• The EU Blue card is not cancelled even if the holder spends more than 90 consecutive days outside Cyprus, which is the applicable threshold for other types of temporary residence permits in Cyprus.

How can Dixcart help you?

Dixcart has been assisting its clients with international structing and company incorporation and management for over 50 years. We offer a wealth of in-depth local knowledge and our team at Dixcart Management (Cyprus) Limited have become experts in our field.

We will help you gather and collate all the required documents and assist in ensuring that all required criteria are met dealing with the governing bodies on your behalf to ensure that everything is fully compliant with local and international requirements and regulations.

If you would like to know more about the benefits of applying for an EU Blue Card or if you have any questions about how we can help you please contact us at the Dixcart office in Cyprus for further information: advice.cyprus@dixcart.com

Introduction

If you are considering retiring abroad, there are numerous factors to take into account, ranging from affordability and quality of life to visa requirements and taxation policies.

With over 320 days of sunshine a year, free healthcare, and a variety of visa options with attractive tax benefits, Cyprus has become a top choice for retirees seeking to make the most of their retirement.      

Immigration Options

As a member of the European Union (EU), Cyprus offers the right to live and work in the country for all EU and European Economic Area (EEA) citizens, making relocation straightforward for those from these regions.

For non-EU and non-EEA citizens, commonly referred to as third-country nationals, there are several pathways to residency. The two most popular options are:

1. Establishing a Foreign Interest Company (FIC)
2. Residency by Investment

Please find our detailed article on these routes here.

Other residency pathways are available, though they tend to be less commonly used and may involve a more extended application process. If you are considering moving to Cyprus and feel that neither of the above options suit your circumstances, please feel free to contact our team. We would be happy to explore alternative solutions tailored to your situation.

Tax Benefits

Tax on your foreign pension

Once you become a tax resident in Cyprus, your foreign pension income becomes subject to Cyprus taxation on a worldwide basis (provided it is not an excluded pension, such as a UK Government service pensions).

You have the flexibility to choose between two tax options each year:

Option 1 – 5% tax

This straightforward option taxes all your pension income at a flat rate of 5%, after applying a tax-free allowance of €3,420.

Option 2 – The standard income tax rates

Under this option, your pension income is combined with your other annual income and taxed according to the standard income tax rates, as outlined below:

Each individual should assess their situation annually and select the most suitable option, declaring their choice on their tax return.

Pension Lump Sums

Pension commencement lump sums are not taxable in Cyprus, even if received whilst resident in Cyprus. This exemption falls under the domestic ‘exempt income’ rules.

Other Tax Benefits

Non-Domicile Regime:

In addition to the previously mentioned benefits, you may also qualify for the Cyprus Non-Dom regime. This tax regime lasts for 17 years with no buy-in cost. If eligible, you can take advantage of the following benefits:

• 0% income tax on dividends, capital gains, and most types of interest
• 50% exemption on salaried income, provided you meet the criteria

For those with investment income or those receiving dividends from a family business, this regime allows you to receive these amounts free from personal income tax.

For more detailed information about the Non-Dom regime, please refer to our article here.

Inheritance Tax

It is important to note that there is no inheritance tax or gift tax in Cyprus, a benefit available to both Non-Doms and ordinary residents.

Other Notable Advantages

While the tax advantages are significant, they are rarely the sole reason individuals move to Cyprus. Individuals and their families relocate to the island for a variety of reasons, including:

• Cyprus has a very high standard of living and is considered one of the safest countries in Europe.
• The island offers excellent free healthcare, ranked among the highest quality in the world, surpassing countries like Canada and the UK.
• Cyprus is well connected with two international airports providing links to many European destinations and daily flights to hubs such as Dubai, Qatar, and Abu Dhabi.
• The local culture is welcoming and friendly, with a strong emphasis on family-oriented lifestyles.
• Of course, the weather is a significant draw. Cyprus enjoys over 320 days of sunshine per year, with minimal rainfall compared to the rest of the EU. While summers can be very hot, the island experiences all four seasons, and it cools off nicely in the winter. There is even a ski resort on the highest mountain.

How Can Dixcart Help?

At Dixcart, we leverage over 50 years of experience to assist individuals worldwide in finding tailored solutions and executing their plans. For immigration clients, we provide comprehensive support, from gathering required documents for visa/residency permits to guiding you through tax structuring and even accompanying you to immigration offices.

If you are considering moving to Cyprus, reach out to us at advice.cyprus@dixcart.com to see how we can assist you.

Introduction

With over 20% of the population being made up of expats it is clear that Cyprus has become a hotspot for those looking to relocate. There are several benefits drawing people to Cyprus, ranging from a high standard of living and excellent healthcare system to the wide array of taxation benefits and visa options. The 320 sunny days a year also helps convince some.

In this article we will briefly summarise the routes to residency through the two most popular immigration options, as well as outline the key benefits of the Cyprus Non-Domicile (Non-Dom) Regime.

Immigration Options

 EU and EEA citizens

As a member of the European Union (EU), Cyprus offers the right to live and work in the country for all EU and European Economic Area (EEA) citizens, making relocation straightforward for those from these regions.

Non-EU and Non-EEA citizens

For non-EU and non-EEA citizens, commonly referred to as third-country nationals, there are several pathways to residency. The two most popular options are:

1. Establishing a Foreign Interest Company (FIC)

Rights: This route gives you (and your family members) the right to live and work in Cyprus.

Investment requirement: An investment of €200,000 of paid-up capital that can be later used to fund the expenses of the company or used for investments to generate income.

See our full detailed article here if this route to residency interests you.

2. Residency by Investment

Rights: This route gives you the right to live in Cyprus but not the right to work. This means you may not take up any employment in the republic but does not limit you from being the owner and a director on a Cyprus resident company, thus receiving dividends, or working for an overseas entity.

Investment requirement: A local investment of €300,000 is required. This is commonly done through the purchase of a residential property to live in.

See our full detailed article here if this route to residency interests you. Please note there have been some recent changes to the permanent residency regime, we have done a detailed article on these changes here.

3. Other residency options

A number of other options are available, though they tend to be less commonly used and may involve a more extended application process. If you are considering moving to Cyprus and feel that neither of the above options suits your circumstances, please feel free to contact our team. We would be happy to explore alternative solutions tailored to your situation.

Cyprus Non-Domicile Regime

When you become a tax resident in Cyprus you may qualify for the Cyprus Non-Dom regime, provided you or your father were not born in Cyprus. This tax regime lasts for 17 years with no buy-in cost.

If eligible and you complete your application, you can take advantage of the following benefits:

• 0% tax on dividends, capital gains, and most types of interest
• 50% income tax exemption on salaried income, provided you meet the criteria

For those with investment income or receiving dividends from an overseas business, this regime allows you to receive these amounts free from tax.

For more detailed information about the Non-Dom regime, please refer to our full article here.

How Can Dixcart Help

At Dixcart, we leverage over 50 years of experience to assist individuals worldwide in finding tailored solutions and executing their plans. For immigration clients, we provide comprehensive support, from gathering required documents for visa/residency permits to guiding you through tax structuring and even accompanying you to immigration offices.

If you are considering moving to Cyprus, reach out to us at advice.cyprus@dixcart.com to see how we can assist you.

The Portuguese Immigration and Borders Service (AIMA) recently held a meeting (January) with legal representatives to discuss key updates and processing changes for the Portuguese Golden Visa programme in 2025.

The key changes can be summarised as follows:

• Citizenship Residency Period: The five-year residency period for citizenship begins on the date of the initial application fee payment (allowing elapsed time since application not to be wasted – as it counts toward the five-year residency requirement for citizenship).
• Digital Transition: AIMA is moving to a fully digital system to streamline processing. Expect a transition period for pending cases (applications awaiting their initial biometric appointments will be prioritised).
• Document Validity: All documents will need to be re-submitted online (this includes personal and investment-related documentation). Their validity will be assessed based on the resubmission date.
• Language Flexibility: Documents in English, Spanish, or French no longer require translation.
• Final Fees: Final fees are to be paid at the biometric appointment. Reimbursement is available for rejected applications.

Other relevant updates include the following:

• AIMA aims to streamline application processing and improve efficiency by transitioning towards greater reliance on digital platforms. To this end, they are prioritising applications awaiting their initial biometric appointments and focusing on addressing abandoned applications.
• Biometric appointments will be scheduled from 15 January 2025, in chronological order of document uploads. Appointments can be scheduled between 30 to 90 days in advance.
• Following successful biometrics and a thorough review, AIMA will proceed with the issuance of Golden Visa cards. Applicants will be notified if any issues are identified during the process and required to make corrections.
• Existing cards remain valid until June 2025. Renewals will continue to be processed in person at AIMA offices. A dedicated platform for booking renewal appointments will be made available in the coming months. Dixcart is actively requesting in-person biometrics appointments for renewal applications.
• Card validity varies based on the investment type: two years for fund-based clients and three years for property-based clients. Government fees are subject to potential changes.

July 2025: The Portuguese Parliament has begun discussing significant changes to the country’s nationality and immigration laws, including extending the required residence period for citizenship and altering how that period is calculated. These proposed amendments, which also cover stricter requirements for family reunification, are still in early stages and may be subject to revisions.

Disclaimer: This information is provided for general guidance for discussion purposes and should not be considered advice.

Reach out to Dixcart Portugal (advice.portugal@dixcart.com) for more information.

Taxpayers who are NHR (Non-Habitual Residents) or IFICI (Incentive for Scientific Research and Innovation) eligible, benefit from a package of respective tax advantages, for a period of 10 consecutive calendar years (with the option of utilising the marginal rates, if lower), from the effective date of Portuguese tax residency.

Summary of Tax Consequences Differentiating between the Previous and New NHR (IFICI/NHR2.0) Regime

I am part of the previous NHR – does this affect me?

As the previous NHR regime will be grandfathered (including those who become tax resident before 31 December 2024), there is no impact for individuals already enjoying NHR status. The regime will continue to exist until the 10-year NHR period is reached, from when each respective individual registered for NHR.

Contact Us

Dixcart Portugal provide a host of services to international clients. Reach out for more information (advice.portugal@dixcart.com).

Note that the above must not be considered as tax advice and is for discussion purposes only.

Following the Government’s release of regulations in December 2024, Portugal has reintroduced a new Non-Habitual Residents Regime (NHR), known as “NHR 2.0” or IFICI (Incentive for Scientific Research and Innovation). The new regime is, effective from 1 January 2024 – a redesigned tax incentive scheme replacing the previous NHR.

The scheme, to summarise, is to allow those who choose Portugal as their base for establishing their business or exercising a respective professional activity in Portugal, to benefit from several tax advantages.

The key benefits, available for 10 calendar years from the time they become tax resident in Portugal, are summarised as follows:

• 20% flat tax rate on qualifying Portuguese income.
• Exclusion from tax for foreign-sourced business profits, employment, royalties, dividends, interest, rents, and capital gains.
• Only foreign pensions and income from blacklisted jurisdictions remain taxable.

Requirements for the New NHR:

Those intending to benefit from the new NHR can do so provided they comply with the following set of requirements:

1. Application Deadline: Applications must generally be submitted before 15 January of the following year after becoming tax resident in Portugal (Portugal’s tax years run in line with calendar years). A transitional period applies for those who became tax resident between 1 January and 31 December 2024, with a deadline of 15 March 2025.
2. Prior Non-Residency: Individuals must generally not have been tax resident in Portugal in the five years preceding their application.
3. Qualified Professions: To be eligible, individuals must be employed in at least one highly qualified profession, including:
   • Company Directors
   • Specialists in physical sciences, mathematics, engineering (excluding architects, urban planners, surveyors, and designers)
   • Industrial product or equipment designers
   • Doctors
   • University and higher education teachers
   • Specialists in information and communication technologies
4. Qualification Criteria: Highly qualified professionals typically require:

1. A minimum of a bachelor’s degree (equivalent to Level 6 on the European Qualifications Framework); and
2. At least three years of relevant professional experience.

5. Business Eligibility: to qualify for the Portuguese NHR under the business eligibility criteria, individuals must be employed by companies that meet specific requirements, namely:
   • Eligible businesses must operate within specific economic activity codes (CAE) as outlined in the Ministerial Order.
   • Companies must demonstrate that at least 50% of their turnover is derived from exports.
   • Belong to eligible sectors, including extractive industries, manufacturing, information and communication, R&D in physical and natural sciences, higher education, and human health activities.
6. Application Process:
   • Specific forms must be submitted to the relevant authorities (which may include the tax authorities) for eligibility verification. This is something Dixcart Portugal may assist with.
7. Application Documents: Required documents may include:
   • Copy of employment contract (or scientific grant)
   • Up-to-date company registration certificate
   • Proof of academic qualifications
   • Statement from the employer confirming compliance with the activity and eligibility requirements
8. Annual Confirmation:
   • The Portuguese tax authorities will confirm the NHR 2.0 status annually by 31 March.
   • Taxpayers must maintain records demonstrating that they carried out the qualifying activity and generated the corresponding income during the applicable years and provide this evidence upon request to benefit from the respective tax advantages.
9. Changes and Termination:
   • If there are changes to the original application details that affect the competent authority or the entity verifying the value-added activity, a new application must be filed.
   • In case of any changes to, or termination of, the qualifying activity, taxpayers are required to inform the relevant entities by 15 January of the following year.

What are the Tax Consequences for my Income Sources?

The tax rate and treatment will vary – please refer to our article on Tax Consequences of the Non-Habitual Residents Regime for more information.

Contact Us

Dixcart Portugal provide a host of services to international clients. Reach out for more information (advice.portugal@dixcart.com).

Note that the above must not be considered as tax advice and is for discussion purposes only.