As part of the 2024 State Budget changes, the Portuguese government has introduced a tax program that makes it more advantageous for Portuguese emigrants living abroad to return to Portugal.
This initiative, created under the "Programa Regressar" (Return Program), allows Portuguese citizens who move back to Portugal to pay income tax (IRS) on only 50% of earnings, up to a limit of €250,000.
To qualify, the following conditions must be met:
Become a tax resident in Portugal in 2024, 2025, or 2026;
Have not been a tax resident in Portugal for the past five years;
Have been a resident in Portugal before:
December 31, 2018, for those returning in 2024;
December 31, 2019, for those returning in 2025;
December 31, 2020, for those returning in 2026;
Have a regularized tax status;
Not have applied for Non-Habitual Resident (NHR) status.
This benefit applies to income earned from any business or activity, provided it is conducted individually, including:
Employment income;
Business income from commercial, industrial, agricultural, forestry or livestock activities;
Professional income from service provision.
If the income is earned through a company, it is subject to corporate tax (IRC) instead of personal income tax (IRS) and is not covered by this exemption.
The benefit lasts for 5 years and applies from the year the individual becomes a resident again in Portugal, continuing for the next four years.
Since this benefit is automatic, taxpayers should indicate that they want to use this regime when submitting the Model 3 IRS tax return.
If you are a Simple Life Home Buyer client from the Leisure Launch group and would like more information about this tax benefit, give us a call to know if you are eligible!
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