Initially, the government had announced the end of new enrollments, signaling that individuals moving to Portugal in 2024 would no longer be eligible for a decade of reduced taxes compared to the general population.
However, during the transition from the proposal of the State Budget to the presentation of amendments, the Socialist parliamentary group decided to overhaul the government’s original plan. They are now proposing the creation of a transitional regime, effectively maintaining the current rules for an additional year until the end of 2024. Importantly, this extension will apply exclusively to those individuals who had already begun the process of relocating to Portugal.
Socialist Party justifies this move as a measure to “safeguard the legitimate expectations of people who have already made the decision to immigrate or return to Portugal.” Failing to address these expectations, they argue, could erode the confidence of those who have committed to such a significant life change.
In addition to preserving the existing rules (lower IRS for ten years) for those becoming tax residents by the end of 2023, Socialist Party proposes that the regime will also apply to individuals who “become tax residents by December 31, 2024” and “declare, for the purpose of their registration as non-habitual residents, to possess a certain element binding them to this commitment.”
This unexpected shift in policy aims to provide a smoother transition for individuals making life-altering decisions and underscores the government’s recognition of the substantial impact such a move can have on people’s lives.
