The special tax regime is restricted to candidates engaged in the so-called “high value-added activities”. This special tax regime “non-regular resident” status applies to a 10 - year period starting from the application as a tax resident in Portugal.
Subject to certain conditions being met, foreign source income also benefits from tax exemption.
Income from Portuguese source derived from these activities is subject to a 20% special personal income tax rate. Also, candidates must not have been a resident for tax purposes in Portugal in the five years prior to requesting eligibility. All the European Union, European Economic Area and Swiss citizens benefit from the mobility granted in the EU and have free access to labour market and residence.
For further information, please see the Portuguese Tax Office brochure on the non-regular tax regime.