Status of non-habitual tax resident in Portugal

Our client’s business activities focus on the provision of computer technology services, including market observation, feasibility studies, assessment of competition, support in the management of IT projects, and standard software maintenance. As an engineer, our client chose not to set up a limited liability company, but to register at the tax office as a self-employed entrepreneur instead. He has no employees, therefore the business activities are performed by him alone.

Ecovis’s goal was to help the client to reduce his tax liabilities in Portugal and make his business more profitable.

On his behalf, we successfully obtained the status of a non-habitual resident in Portugal, which allows him to benefit from a special fixed tax rate of 20% for a period of 10 years. We applied for the status when the regime was first introduced and before the tax authorities had internal analysis procedures in place, thus making it more difficult to obtain in a short period of time.

Today, our client runs a well-established business, which is subject to this special legislation and benefits from this non-habitual resident status. We also provide him with other services, such as accounting, invoicing and general tax consultancy.