The Portuguese Government approved in September of 2009 a regime for non-habitual tax residents.
The tax regime for non-habitual residents is part of the Investment Tax code and has the intention to draw to Portugal certain individuals as well as investments.

1 – Taxation
The Portuguese Government published a list of activities which are considered to be “High added value in terms of scientific, artistic or technical nature.”
The non-habitual residents that are employed or self-employed or work for a company and their income from activities are considered to be “High added value” then the individuals are subject to a special taxation of 20%.
Additionally, the regime establishes a tax exemption to the income derived from foreign sources, specifically, income of employed and self-employed individuals, property, capital gains, interests, dividends and other capital income. The tax exemption is applicable when all the specific conditions are complied.
This regime is applicable for a period of ten consecutive years.

2 – Requirements
The regime of non-habitual residents applies to taxpayers who acquired tax residence in Portugal and didn’t have the status of tax residence in Portugal at any time during the five previous years. Under these conditions, the taxpayer will be registered and  considered as non-habitual residents.

3 – Practical Aspects
The status of non-habitual resident is obtained by applying for this status in the Register of taxpayers of the Tax Authorities application by the 31st of March of year after they become tax resident in Portugal.