The Non-Habitual Tax (NHR) program is a tax regime intended for foreign residents. It was introduced in 2009 to encourage foreigners to move to Portugal.
Under the NHR program, you can get reduced tax rates and exemptions on some taxes provided that you hold a residence card in Portugal. There are numerous types of income that qualify for the NHR program, for example:
Income from real estate
Occupational pensions
Self-employment income from eligible occupations
Dividends
Royalties
The main advantages of the NHR program are tax exemption on almost all foreign sourced income and a 20 per cent flat rate on some Portuguese income.