Residency & Citizenship

Portuguese nationality can be acquired for several reasons. Original nationality can be obtained in the following cases:

• Sons of Portuguese mother or Portuguese father born in Portuguese territory;
• Children of a Portuguese mother or a Portuguese father born abroad if the Portuguese parent is in the service of the Portuguese State;
• Children of a Portuguese mother or a Portuguese father born abroad if they are registered in the Portuguese civil registry or if they declare that they wish to be Portuguese;
• Individuals born abroad with at least one ascendant of Portuguese nationality up to the second degree in the straight line;
• Individuals born in Portuguese territory, children of foreigners, if at least one of the parents is also born here and resides here, regardless of title, at the time of birth;
• Individuals born in Portuguese territory, children of foreigners who are not in the service of their State, declare themselves to be Portuguese and provided that at the time of birth one of the parents has been legally resident for at least five years;
• Individuals born in Portuguese territory who have no other nationality.

Nationality may also be acquired by virtue of the will, in the case of minor or incapacitated children, of a father or mother who acquires Portuguese nationality by declaration, or, in the case of a foreigner who has been married for more than three years to a Portuguese national, or at the date of the declaration of a de facto union for more than three years with a Portuguese national, after recognition of this situation to be filed in the civil court.

Finally, it is possible to acquire nationality by naturalization in the case of adult foreigners who have been legally resident in Portugal for at least six years, who are sufficiently familiar with the Portuguese language, provided they have not been convicted of a crime punishable by a maximum prison sentence equal to, or exceeding 3 years, according to Portuguese law and which do not constitute a danger or threat to national security or defence.

Minors are also granted nationality by naturalization provided that, at the time of application, one parent has been legally resident for at least five years, or the child here has completed the first cycle of basic education.

It is also possible to acquire nationality by naturalization of individuals born in Portuguese territory, children of foreigners, who, although have not been legally resident in Portugal for six years, have usually stayed here in the 10 years immediately prior to the request.

Our services include the collection of all forms and documents necessary for this purpose, establishing all necessary communications, as well as customer follow-up with the Portuguese authorities.

During the 15th and 16th centuries a large number of Sephardic Jews were expelled from Portugal. However, many have maintained the language, the rites of the old Jewish cult in Portugal, the family surnames, objects and documents that allow to demonstrate their Portuguese origins and a strong memorial relations with Portugal.

In order to facilitate the acquisition of nationality by descendants of Sephardic Jews, the Portuguese Nationality Law was amended on July 3, 2013.

1. Requirements to be met for the acquisition of Portuguese nationality:

• Being an adult, or emancipated, under Portuguese law;
• Not having been convicted for an offense punishable by a prison sentence of more than three years, under Portuguese law;
• Indicate and demonstrate in the application, the circumstances that determine the tradition of belonging to a Sephardic community of Portuguese origin.

2. Documents to be presented with the application:

• Birth certificate;
• Certificates of criminal record issued by the competent Portuguese services, of the countries of birth, nationality and of the countries of residency;
• Documents that prove direct descendency, or collateral line family relations with a common parent from the Sephardic community of Portuguese origin and a tradition of belonging to a Sephardic community of Portuguese origin (this document will normally consist of a certificate from the Jewish community with the status of a legal religious person, established in Portugal under the law, attesting to the tradition of belonging to a Sephardic community of Portuguese origin, namely by name, family language, genealogy and family memory).

Foreign citizens can apply for residency in Portugal if they have one of the following reasons:

• Carrying out dependent work in the country;
• Being a qualified independent worker;
• Business activity;
• Family reunion;
• Enrolment in an educational establishment.

 The following general criteria must be met in order to apply for temporary or permanent residency in Portugal:

• Absence of a conviction for a relevant crime in the last 5 (five) years;
• Proof of income / financial independence;
• Proof of accommodation in Portugal.

There are also specific criteria depending on the grounds on which residency is required.

We provide all necessary assistance in any of the cases that apply to you, collecting and completing all necessary forms, establishing all communications with the official bodies and necessarily, planning and accompanying each client in all their appearances before the public authorities.

The special scheme for non-habitual residents (“RNH”) applies to natural persons transferring their residence to Portugal after a long period of residence outside Portugal.

Some general concepts about the scheme:

The non habitual resident can benefit from a special IRS (Personal Income Tax) regime for a period of ten years.

Income obtain in Portugal:

Income from dependent work and corporate and professional income can be taxed at the special rate of 20%, if related to activities of high added value, with a scientific, artistic or technical character, practiced in Portugal and identified by Ordinance no. 12/2012, of 7 January.
Examples of activities with high added value:
Architects, physicians, university professors, designers, computer programmers, engineers, researchers, liberal professionals, investors and managers under certain conditions.
Other income will be subject to taxation at normal IRS rates.

Income obtain abroad:

In this case, it will be necessary to distinguish (i) professional income and royalties, (ii) pension income, and (iii) passive income.

Professional income and royalties:

In the case of income from dependent work obtained abroad, it will be exempt from IRS, provided that it is effectively taxed in the State of source in accordance with a double taxation agreement between Portugal and that State or, in the absence of a double taxation agreement , such income is taxed in the State of source and can not be considered to have been obtained in Portuguese territory, in accordance with the rules established in the IRS Code.
On the other hand, as regards income from self-employment resulting from high added value activities, as well as royalties, both will be exempt from IRS, provided that they can alternatively be taxed in the State of source in accordance with double taxation agreement concluded between Portugal and that State, or, in the absence of a double taxation agreement, (i) such income may be taxed in the State of source in accordance with the OECD Model Tax Convention on Income and Assets ; (ii) income is not considered to have been obtained in Portuguese territory, in light of the IRS Code, and (iii) the country, territory or region of the source of the income is not included in the Portuguese list of tax havens.
It is particularly relevant for the application of the IRS exemption referred above the distinction established by the legislator as to the effective taxation, or mere subjection of income, by the State of source. Thus, while in the case of dependent work income, the application of the exemption is dependent on the effective taxation of income in the State of source; in the case of income from self-employment, the legislation made the application of the exemption subject to the mere possibility of taxation of that kind of income by the State of source.
When income from dependent work, self-employment or royalties does not meet the above conditions, such income will be taxed in accordance with the general taxation regime applicable to taxable persons, in particular by subjecting them to progressive IRS of up to 48%, plus an extraordinarily high surcharge of 3.5% on the value of the remuneration that exceeds the guaranteed minimum monthly remuneration, and the additional solidarity rate, applicable progressively to the part of the taxable income that exceeds € 80,000.00 . The part of the income that exceeds EUR 250,000 will, in turn, be taxed at the rate of 5%.

Pension income:

In respect of pension income, it shall be exempt from taxation in Portugal provided that it is taxed in the State of source, in accordance with the double taxation agreement between Portugal and that State, or alternatively, if by the criteria set out in the IRS Code, such income is not considered to have been obtained in Portuguese territory.
In practical terms, this means that even if pension income is taxed exclusively by the State of source, it will not be subject to IRS taxation provided that, according to Portuguese tax rules, it is not considered to have been obtained in Portugal.

Passive or capital income:

In respect of passive income, such as interests, dividends, other income from capital, income and capital gains obtained abroad, they shall be exempt from taxation in Portugal provided that they can alternatively be taxed in the State of source in accordance with double taxation agreement concluded between Portugal and that State, or, in the absence of a double taxation agreement, (i) such income may be taxed in the State of source, in accordance with the Model Tax Convention on the Income and OECD; (ii) income is not considered to be obtained in Portuguese territory, in light of the IRS Code, and (iii) the country, territory or region of the source of the income is not included in the Portuguese list of tax havens.
In this respect, in regard to the taxation of capital gains, it should be pointed out that most of the double taxation agreements signed by Portugal grant taxation of this type of income only to the State where the taxable person is resident, which makes it impossible to application of the above mentioned exemption.

Other taxes:

Tax on Estates
Portugal does not tax Estates. There are only local taxes levied on properties located in Portugal (as described below).

Real Estate Acquisition
Portugal applies a municipal tax on the acquisition of properties, which varies between 0 and 6%. Stamp duty is also due at the rate of 0.8%.

Annual Real Estate Tax
In Portugal, properties are subject to an annual municipal tax (IMI), calculated based on the registered property value. The rate varies between 0.3 and 0.45% (depending on municipality and type of property). Stamp duty will also be due on an annual basis, at the rate of 1%, for properties with a tax asset value equal to or greater than € 1,000,000.

Inheritance tax
Stamp Tax is due, at a rate of 10% on Portuguese assets, except for the spouses, descendants and ascendants, which are exempt.

Donation tax
Stamp duty is due on donations made in Portugal at the rate of 10%, except for spouses, descendants and ascendants, who are exempt. A rate of 0.8% is applied to real-estate donations.

Qualification for the regime:

To qualify as RNH, a natural person must meet the following requirements:

• To be considered a tax resident in Portugal;
  Not having been qualified or been taxed as a tax resident in Portugal for the previous five years in respect to the year in which you become a tax resident in Portugal.
• Qualifies as a tax resident in Portugal anyone who, on any year:
• Has remained for more than 183 days (continuous or interpolated) in any period of 12 months beginning or ending in the year in question; or
• Having, at any time during the period referred to above, a dwelling that can be considered as habitual residence in Portugal.

*Any day (full or partial) in Portuguese territory that includes overnight is considered as a day of presence. The tax residence will be fixed, as a rule, from the first day of stay in Portugal.

Registering as an RNH:

• Recognition as an RNH is not automatic, and it is necessary to apply for the regime by observing the following formalities:
• Requesting a Portuguese tax identification number (“NIF”);
• Registering as tax resident;
• Registering as an RNH.

However, if the Portuguese Tax Authorities have questions about the fiscal situation of the applicant, additional documents such as certificates of residency for tax purposes, and other documents, proving that the person’s economic and personal life was centered in another State during the five years prior to the arrival in Portugal.
The application for registration as an RNH must be made by March 31, of the year following that in which you become a fiscal resident in Portugal.

Start-up Visa is a residency visa for entrepreneurs, which aims to attract investment, talent, and innovation to Portugal.

This program creates a certification statute for companies, and incubators, so that they can welcome foreign citizens, be it entrepreneurs or highly qualified professionals.

Since January 1, 2018, entrepreneurs from all over the world who want to open an innovative company have quick access to a residency visa that allows them to create or move a Startup to Portugal.

By investing and creating qualified employment, they can join a Portuguese startup incubator and benefit from all the incentives and support of the Startup Portugal Program.

This program is one of the most innovative at the European level for attracting and retaining international talent.

This way, third state entrepreneurs can apply through an online platform available since January 2018.

International entrepreneurs wishing to access the Startup Visa and obtain a residency and work permit must demonstrate that they:

• Want to develop entrepreneurial activities to produce innovative goods and services;
• Will open, or relocate, companies and/or projects focused on technology and knowledge, aiming to develop innovative products;
• They have the potential to create qualified employment;
• They have the potential to achieve a value of € 325,000 three years after the incubation period or a turnover of more than € 500,000 per year.

The evaluation of the economic and innovative potential is based on criteria, taking into account the degree of innovation, business scalability and market potential, the capacity of the management team, the potential to create qualified employment in Portugal and the relevance of the applicant to the team.