26.04.2023 ITR (International Tax Review)

Francisca Osório de Castro writes for ITR

Francisca Osório de Castro signs the article "The Non-Habitual Resident regime: an American oasis?", recently published in ITR.

The lawyer overviews recent case law that could have a significant impact on American nationals’ tax regime in Portugal.

"An oasis for US citizens benefiting from the tax regime for Non-Habitual Residents in Portugal (NHR regime) may be on the horizon, in light of the Court of Arbitration's decision in case no. 684/2020-T.

The NHR regime is a favourable tax regime designed to attract professionals who carry out high value-added activities to Portugal, as well as persons with high net worth. In short, depending on the type of income earned by the taxpayer, the NHR may allow for the possibility of lower taxation or full exemptions on income earned abroad.

Under Portuguese law, for foreign income earned by the taxpayer to be exempt from personal income tax in Portugal, such income must be taxable in the other contracting State. This is in accordance with the Double Taxation Treaties (DTC) or, in their absence, in accordance with the OECD Model Tax Convention (OECD-MTC), as long as that State is not considered a tax haven in Portugal. (...)".

Clique here to read the article.