Information

Non-habitual resident NHR Programme in Madeira

The programme was created in Madeira Portugal in 2009 and updated in 2013 to clarify that pensions would be tax free in Madeira. Once this happened, the number of applications rose dramatically;   from 2009 – 2012 only 100 applications were submitted but after the update, more than 1000 applications were received in 2013 alone. In 2014, this rose up to 3 474 applications and these numbers just keep on increasing.

 

The regime is focuses on 2 sets of people: Retirees that are receiving pensions from abroad and professionals that are either employed or self-employed.

Some of the professions accepted on the NHR programme in Madeira Portugal are: Directors or Company Managers, Medical Doctors, Architects, Engineers, Artists, University Professors and other professions of similar statute.

 

How to Qualify:

To qualify for the regime, you must not have been resident in Portugal or Madeira during the previous 5 years. The application for this status has to be submitted by the 31st of March of the following year.  Once accepted in the programme,you will qualify for all tax benefits and conditions for 10 years, with your pension from abroad becomeing tax-free.

Professionals in high added value professions will pay tax at a rate of 20% on qualifying earnings in Madeira Portugal whether from a Portuguese or foreign source.   

In principal normal pensions should only be taxable in the country of residence so that with the interplay with the NHR status these may be tax free for 10 years. It is important to obtain sound advice from tax experts to ascertain exactly what reductions you qualify for and to work out how much you could benefit from the Portuguese NHR Scheme in Madeira. 

 

For further information about the NHR programme in Madeira, please CONTACT US HERE and we will get a tax expert in Madeira to contact you.