The best money we have made in a long time is registering for the 20% NHR tax from a hotel room in Portugal
The whole world is praising Portugal for its fantastic weather, delicious seafood, beautiful country and super friendly people – the main reasons why we decided to settle in Lisbon
But these things have been here forever. So why are the whole world rushing to Portugal now?
There are two reasons for that: Portugal has One of the best and most attractive real estate markets in the world and for many people one of the lowest tax regime in Europe where foreigners with status as Non Habitual Residents – or NHR status – only pay 20% income tax the first 10 years they live here.
We soon found out about the tax benefits – all foreigners talks about it. But since we don’t get an income until we open our hotel in May, we hadn’t done anything about that but focused on arranging our daily life with social security, permanent residence status, bank accounts, health insurance and stuff like that.
Now that we get closer to our opening in May we started looking into how to get the NHR status and asked around – our accountant and foreigners who already have NHR status. The answer was the same. As investors in the tourism industry everybody told us we were qualified. Prizes to get it varied from 150 € to 1,500 € per person depending on who you asked.
But what nobody told us was how easy it is to register yourself. It took us less than 5 minutes with Google and another 15 minutes on Portal Das Financas to register.
Living In Portugal is an institutional site aimed at foreign nationals with the purpose of facilitating access to relevant information produced by official bodies about the home buying process in Portugal, as well as matters relating to entry and residence requirements, taxation and other useful information for anyone who decides to live in Portugal.
It does not provide commercial contacts nor replaces the scope of action of the different entities with specific competences. Therefore, direct links to these entities are provided on every page.
If the low tax is the primary reason to settle in Portugal – seek advice
We know that there are people who only wants to live here because of the low tax and may be in the grey zone regarding qualification to the NHR regime. They might need consultancy and legal advice to bend the rules.
The rest of us – DIY!
But for people like us who are seriously starting-up a company and who already have permanent address, NIF numbers and all the other things residents need, there are absolutely no reason to pay 1 € to accountants, lawyers or other consultants to apply for NHR Status.
Why doesn’t anybody tell serious start-uppers like us how easy it is?
It’s really strange.
Any way – it’s not rocket science. If we can do it, so can most others. Just follow the rules and directions which you can find online.
Remember to share to your Portuguese Start-Up freinds.
The 14 page ‘NHR manual’ from Portal Das Financas (NB: if you read this long after it’s published check for updates ).