After 10 years, your NHR tax status expires which means you will transition to Portugal’s standard tax regime. This means you may be subject to progressive income tax rates of up to 48% on worldwide income but there are ways to mitigate this if you plan early in years 1 to 7 by structuring your income and assets so that they are optimised for Portugal. It is important to consult with a cross-border tax and wealth management professional. Portugal Pathways can arrange an initial discovery call with you to better understand your personal situation and give you clarity and peace of mind as early as possible within your 10-year NHR tax status life, as this is key.

No, NHR tax status is a one-time, 10-year tax incentive that cannot be renewed. After expiry, you will be subject to Portugal’s standard tax regime, making early tax planning crucial.

It is important to seek early professional advice well before the end of your NHR tax status, ideally in years 1-7. Consider restructuring your income and assets as well as optimising non-Portugal derived pension withdrawals to minimise tax exposure. It is important to consult with a cross-border tax and wealth management professional. Portugal Pathways can arrange an initial discovery call with you to better understand your personal situation and give you clarity and peace of mind as early as possible within your 10-year NHR tax status life, as this is key.

It is advisable to first seek cross border tax and wealth management professional advice before taking any action. Strategies may include restructuring your pension into a more tax-efficient vehicle that is aligned to life in Portugal and the European financial regulations. Without planning, your pension income may be taxed at up to 48%.

Yes, reviewing your investments can help reduce tax exposure post-NHR. A strategic portfolio adjustment may lower your tax liability and enhance tax efficiency. It is advisable to first seek professional support before taking any action.

Yes, estate planning tools like trusts and gifting can help manage inheritance tax exposure. It is important to consult with a cross-border tax and wealth management professional. Professional guidance ensures your assets remain structured optimally under Portugal’s tax system.

Yes, but the tax treatment of foreign income may change. Seeking professional advice can help you navigate the implications of double taxation agreements.

Ideally, between years 1-7, while you still have flexibility to implement tax-efficient structures. Late planning (years 8-10) may limit your options and result in higher tax liabilities.

Cross-border tax and wealth management experts can help you get clarity and peace of mind in terms of understanding the best way to structure your income and assets, well before you NHR tax status ends.

Portugal, as part of the European Union, operates under EU financial regulations. Adopting a long-term financial strategy that aligns with Portugal’s tax system—rather than relying solely on NHR benefits—can help you better navigate the transition to standard tax rates (28%-48% post-NHR). Thinking like a Portuguese resident while planning can provide clarity, stability, and effective tax mitigation beyond the NHR period.

Insurance wrappers (unit-linked insurance bonds) offer tax deferral and reduced taxation on withdrawals. In Portugal, withdrawals after 8 years are taxed at 11.2% (a 60% reduction from the standard 28%). Tax is applied only to the gains, not the principal. These structures can facilitate tax-efficient estate planning. Early transition into an insurance wrapper can help mitigate future tax liabilities. However, 77% of expats with NHR fail to act early, risking exposure to high post-NHR tax rates. Seeking professional advice ensures long-term protection for your income and assets.