Once considered resident in Portugal for tax purposes, must tax residence in the country of origin be cancelled?
The need to cancel tax residence in the country of origin depends on the legislation of each country. Taxpayers must contact their Tax Authorities to be informed about the necessary procedure to change residence to the Portuguese territory.
In order to obtain the Non-Habitual Resident Status, how can I attest I have remained in the Portuguese territory for more than 183 days?
Third-country citizens can attest their stay in the Portuguese territory by any means acceptable, namely by a purchase deed of a real estate intended for permanent and owner-occupied residence, a lease agreement for a permanent residence or a contract of employment in the Portuguese territory.
In order to obtain the Non-Habitual Resident Status, is it mandatory to give evidence of the acquisition of a real estate?
Anyone who has a home, as at 31st December of the year at issue, in such conditions that can lead to the assumption that it is intended to be kept and occupied as habitual residence, even though it is a rented house, is considered resident in the Portuguese territory.
The intention of residing in the Portuguese territory can be inferred from the contents of the lease contract (namely its duration). If the applicant acquires a real estate in the Portuguese territory, the intention of residing in Portugal can be inferred from the contents of the purchase deed (namely if it is therein stated that the real estate is intended for permanent and owner-occupied residence).
Is the Non-Habitual Resident Tax Regime applicable to citizens with Portuguese (or double) nationality?
Anyone who meets the conditions laid down in the IRS Code may benefit from the Non-Habitual Resident Tax Regime, regardless of his/her nationality.
What is a building?
For the purposes of the municipal tax code on real estate, a building is defined as an entire fraction of territory, including water, gardened areas, buildings and constructions of any nature incorporated or built therein with characteristics of being permanent, so long as it is part of one single person’s estate or that of a collective entity, and in normal circumstances, has financial worth.
Water, gardened areas, buildings and constructions forming part of the assets of an individual or legal entity are also considered as buildings, provided that they are economically autonomous from the land on which they are located, even though they may be situated on a fraction of territory constituting an integral part of diverse assets, or if they do not have the characteristic of an asset.
What must taxpayers declare when acquiring a property?
Any taxpayers acquiring a property or part thereof for a consideration have the obligation, within 60 days, to declare their acquisition to any financial services, so that the records can be updated accordingly.
How can it be proven that a property is your permanent abode?
For this exemption to be granted, a property is considered to be the permanent abode of a taxpayer or their family if they establish their tax domicile therein (item 9 of article 46 of the EBF [tax incentives statute]).
In the case of individuals, the tax domicile of taxpayers is their normal place of residence, unless otherwise specified. Taxpayers must obligatorily inform the tax administration of their domicile, so a change of domicile does not take effect until this such a notification has been given.
Are there any exemptions for buildings constructed, extended, improved or acquired for a consideration by migrants?
Yes. Buildings constructed, extended, improved or acquired further consideration by immigrants, under the definition given to them by article 3 of Decree Law no. 323/95, of 29 November, enjoy an exemption from the IMI (Municipal Property Tax), provided that the conditions set out for properties designed as permanent abodes are met, unless the deadline has passed for allocating these properties for this purpose (permanent abode of migrants or their respective family members) – item 13 of article 46 of the EBF (tax incentives statute).
Is there any exemption for properties forming part of developments assigned to be used for tourism?
Yes. Buildings forming part of developments assigned for use by tourism are exempt from the municipal property tax for a period of seven years, as of the date they are assigned to be used for tourism.
Buildings forming part of developments that have previously been assigned to be used for tourism benefit from a tax exemption for a period of seven years, as of the date they are assigned to be used for tourism, provided that the deadline set for the opening or reopening of the development to the public, or for the completion of the work, is met.
Urban buildings used as guest houses benefit from an exemption from IMI (Municipal Property Tax) for a period of seven years, counted from the termination of the respective works.