Tax Benefits may now comprehend your business activity

From January 1st, 2020, a number of new professional activities from various sectors of the economy will be eligible to benefit from the NHR tax regime, taking advantage of an attractive flat rate (20%) on income received, as well exemptions on other types of income from a foreign source.

The recent Ordinance (accessible through this link) profoundly expands the number and categories of professions that can enjoy these benefits. With this measure the Government intends to attract citizens who engage in activities of high added value and therefore contribute to the development of the national economy, closing the gaps of the Portuguese labour market.

The new list of high added value activities, which require a certain level of qualification or professional experience, is now based on the codes of the Portuguese Classification of Professions (PCP), provided by the INE, I.P. , which will certainly clear many of the interpretive troubles raised so far, as well as broaden the spectrum of professions covered by the tax benefits.

We highlight, among others, the following professions now covered by the scheme: CEOs and executive managers of companies (including CFOs, sales, administration and production directors, etc.), Information and Communication Technology Specialists (IT), and Science and Engineering technicians or professionals (including air traffic controllers, aeroplane and ship pilots).

The content of this information does not constitute any specific legal advice; the latter can only be given when faced with a specific case. Please contact us for any further clarification or information deemed necessary in what concerns the application of the law.