Portugal | 2019.07.25
Non-Habitual Resident Tax Regime: Amendment to the List of High Value Added Activities

The scope of application of the tax incentive for relocation to Portugal of professionals working in high value added activities was amended by Ministerial Order No. 230/2019, of 23 July 2019. The table, listing the new high value added activities, will apply from 1 January 2020. The new table will be relevant for purposes of (i) the 20% flat tax rate available to taxpayers registered in Portugal as non-habitual residents obtaining Portuguese income from employment work (Category A) or business and professional income (Category B); and (ii) the possible exemption from taxation in Portugal for taxpayers registered therein as non-habitual residents obtaining foreign business and professional income (Category B).
New Table
The new table includes the following professional activities with reference to the Portuguese Classification of Occupations:
112 — General manager and executive manager;
12 — Manager of administrative and commercial services;
13 — Production managers and specialized services;
14 — Managers of hotel business, restaurants/catering, trade and other services;
21 — Scientific experts in physics, mathematics, engineering and similar technics;
221 — Doctors;
2261 — Dentists and stomatology;
231 — University and higher education teachers;
25 — IT and communication experts;
264 — Authors, journalists and linguists;
265 — Creative artists and performing arts;
31 — Technicians and  science and engineering professions of intermediate level;
35 — Technicians of information and communication technologies;
61 — Farmers and market-oriented skilled agriculture and livestock production workers;
62 — Market-oriented skilled forestry, fishery and hunting workers;
7 — Skilled industry, construction and crafts workers, including namely skilled workers of metalwork, food processing, woodwork, clothing, handicraft, printing, manufacture of precision instruments, jewelers, artisans, electricians and electronics professionals;
8 — Facility and machinery operators and assembly workers, namely operators of fixed installations and machinery.
Professionals working in one of the activities included in the new list who wish to benefit from the special tax regime applicable to non-habitual residents must also meet one of the following new requirements:
         i. Level 4 of the European Qualifications Framework or Level 35 of International Standard Classification of Education; or
         ii. Having five years of working experience, duly demonstrated.  

In addition to professionals working in the activities listed above, directors and managers of companies carrying out productive investment activities may also benefit to the extent that they are engaged in the projects for which contractual tax benefits have been granted under the Investment Taxation Code (Código Fiscal do Investimento) enacted by Decree-Law No. 162/2014, of 31 October 2014.
For individuals already registered as non-habitual residents on 1 January 2020 or which application is pending on 1 January 2020 (including those who apply until 31 March 2020 with reference to 2019), the table that was previously in force will remain applicable, with the possibility, however, to be also eligible under the new table.

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