Portugal to End Favorable Tax Scheme and Visa Program for Foreign Workers by 2024
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Portugal plans to end its non-habitual resident (NHR) tax scheme in 2024, which currently allows certain foreign workers to pay a flat 20% income tax rate.
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The NHR scheme has attracted thousands of digital nomads to Portugal, but has also contributed to a housing crisis as investment drove up property prices.
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Ending the NHR scheme makes Portugal less attractive for high-earning foreign workers, but aims to address inequality and housing affordability for locals.
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Portugal recently announced it will also end its golden visa program in 2023, which granted visas/citizenship in exchange for property investment.
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The policy changes suggest Portugal is shifting away from incentivizing foreign workers and investors, in response to locals priced out of housing.