The Investment Tax Code, created by Decree-Law n.º 249/2009, approved on September 23rd, implemented a Personal Income tax system for the non-regular resident, with the purpose of attracting to Portugal foreign investment. The non-regular resident tax regime is available for citizens meeting the following conditions:

• Deemed resident on Portuguese territory for tax purposes, according to any of the criteria defined under Article 16, paragraph 1 of the Portuguese Personal Income TaxCode (CIRS), in the year to be taxed as a non-regular resident;
• Has not been deemed resident on portuguese territory during the five years prior to the year pretended to be taxed as a non-regular resident.

The non-regular resident status has to be requested until March 31 of the year after following the one in which he became a resident in the portuguese territory. The Recognition of this status is not automatic and requires activation by attending to the following formalities:

• Application for a Portuguese tax identification number (NIF);
• Registration as tax resident;
• Application for the NHR status

  A citizen deemed non-regular resident can benefit from a favorable personal tax regime during a period of 10 consecutive years, from the year of the registration as a resident on Portuguese territory, as long as continues to be deemed resident in each of the 10 years. These benefits depend on the type of income and its source and can include reduced rates and even tax exemption. The information provided above is an introduction to possible tax consequences of a move to Portugal. It is intended only to be summary.  Individual advice must be obtained.