In 2009, the Portuguese government set up a special tax regime to attract investors, retirees and various professionals from high value-added sectors. This scheme applies to persons who are not resident in Portugal and are taxed in their country of residence: The non-habitual resident regime, better known as the RNH status.
What is RNH status ?
The RNH tax system is a total exemption from income tax for 10 years. It is intended for pensioners whose European country has signed agreements with Portugal.
Regarding France, she signed a tax treaty with Portugal. It must therefore be taxed in France to qualify for this exemption.
What are the steps ?
You will find below the conditions to be met to make this request: Not having been a tax resident in Portugal for the previous 5 years, 183 days of residence in Portugal (consecutive or not) in the year of application for the application of non-habitual residence status are required.
To have accommodation in Portugal. The purchase of real estate is not mandatory. Rental is also allowed. Only condition: prove that one intends to keep housing as usual residence.
Obtaining the NIF (Tax Identification Number) from Portuguese finance, mandatory in the case of a real estate purchase.
After collecting these 4 points, you can apply for a tax resident:
We begin by making this request to the Portuguese tax services. This must be done, at the latest, on March 31 of the year following the move to Portugal. Once submitted to the “portal das financas”, the file is analyzed by the Portuguese authorities (and no, it is not an automatic right, it is subject to analysis and approval). It should be known that the processing of the application for RNH status takes more or less 6 months. Once obtained, the RNH Status has a duration of 10 years.
What are the benefits ?
Exemption from foreign income tax (such as private pensions) for 10 years A flat-rate tax of only 20% (for income tax) applicable on income from the provision of services and wages received in Portugal. The absence of inheritance rights for ascendants and direct descendants reside in Portugal In addition, the tax treaties between France and Portugal, within the framework of the European Union, guarantee the avoidance of double taxation on income.