The non-habitual tax regime is designed to entice highly skilled workers into Portugal. To qualify, employees must have not lived in the country for five years before moving to Portugal, and hold an EU, EEA or Swiss passport or a Golden Visa. A non-habitual tax resident must provide proof of residence in Portugal, though this can be rented accommodation. Homeownership is not a necessity. u003cbr/u003e u003cbr/u003eOnly vocations that are deemed high value will qualify an individual as a non-habitual tax resident. Those that do qualify will see their income tax capped at 20%, regardless of their salary. If the employee is eligible for a lower tax rate, they can opt out of the program. u003cbr/u003e u003cbr/u003eAs of 2020, a non-habitual tax resident will also pay a 10% tax on any pension income that stems for overseas. This was put in place to prevent skilled employees from earning a living elsewhere, then moving to Portugal for a tax-free retirement in the sunshine.