We have written before that NHR has been replaced by a new regime that we call TISRI (the Tax Incentive for Science, Research and Innovation scheme), also called by many NHR 2.0 (or IFICI in Portuguese).
The regime offers a reduced tax rate of 20% for income from work done in Portugal and a full exemption on all foreign sourced income apart from pension. The new regime is complex and offers multiple routes to tax benefits.
At FRESH, as always, we aim to be the first to have clients qualifying and benefiting from the new regime in one of its multiple routes.
The approval process
The new regime has a two stage approval process. It starts with an application to the tax authorities and is followed by a 30 days window for an "approving entity" to approve the status of the tax payer TO the tax authority. The approving entity itself needs to be certified, so before starting the process for the individual, it is important to make sure that the certifying entity it itself properly certified or is planning to be certified.
Route 1 - the "Export Company" Route (includes service exports)
For employees of companies that export 50% or more
(1) Make sure the company that the work will be done for is an "export company". The certifying entity is the tax authority (so this is the only route where everything is done by the tax authority).
(2) Application to the tax authority. The position should be a "high value position", including: directors of companies, experts in physical sciences, engineering and IT, medical professionals.
(3) Certification by the "export company" that the role is as claimed.
(4) Approval.
Route 2 - the Startup Route
For employees or board members of certified startups
(1) Make sure the company that the work for or be a member of the board of is a certified startup. The certifying entity is Startup Portugal.
(2) Application to the tax authority and to Startup Portugal (including a copy of the contract or company registry)
(3) Certification by the startup.
(4) Approval.
At FRESH, we can facilitate the entire process of finding and joining a startup with a qualifying role.
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