If you are planning to obtain Non-Habitual Resident (NHR) status in Portugal, it is important to understand the deadline for applying. According to the authorities, a tax resident must apply for NHR status by March 31st of the year following the year they became a tax resident. This means that if you became a tax resident in Portugal during 2022, you should apply for NHR status before March 31st, 2023.
It is worth noting that the tax residency date is typically based on self-declaration, which means that it is determined by the date that you associated an address in Portugal with your NIF (Número de Identificação Fiscal). However, it is possible for the authorities to backdate the tax residency date if they determine that you met the legal definition of a tax resident prior to the date that you declared your residency.
For example, if you spent more than 183 days in Portugal during a prior year or had a primary residence in the country, the authorities may consider you a tax resident for that year. In such cases, the tax residency date may be backdated, which means that you would need to apply for NHR status before the deadline for the relevant year.
It is worth noting that the primary residence rule can theoretically apply to rental properties, but in practice, the authorities typically treat a residence owned by the taxpayer, where taxes of a primary residence have been paid, as an admission that the intention is to occupy the residence as a primary residence.
In summary, if you are planning to obtain NHR status in Portugal, it is important to understand the deadline for applying. The deadline is March 31st of the year following the year that you became a tax resident, but it is possible for the tax residency date to be backdated by the authorities if you met the legal definition of a tax resident prior to that date. Therefore, it is advisable to seek professional advice to ensure that you meet all the requirements for NHR status and to avoid any potential issues with the authorities.
If you have missed the deadline you can check out our friends at Fresh Portugal.