The Portuguese investment tax code (“PIT”) established a special tax regime for foreigners that qualify as residents for tax purposes in Portugal: The Non-Habitual Resident Tax Regime. This regime, among other things, aims to attract qualified foreigners and expatriates to perform high added-value activities, as well as private investments.

Under the Portugal Non-Habitual Resident Tax Regime, income such as pensions from the private sector, dividends, royalties and interest from non-Portuguese-sourced income are eligible for exemption from personal income tax (IRS) over a 10-year period, provided the criteria are met.