The list of "high value added" professions that give access to NHR status in Portugal has changed. Occupations such as psychologists, architects, designers or archaeologists have left the list, and others such as directors of hotels and restaurants as well as dentists have been added. This is a real upheaval for the NHR status. In fact, the Portuguese tax authorities carried out a "thorough examination" of the list of professional activities recognized as "high value added" and which gave the right to the status of non-habitual residents. According to the order issued on Tuesday, "Portugal's economic situation has changed considerably since the publication of this table of activities, with a significant transformation of the dynamics of job creation". Non-usual residents in the occupations listed here are entitled to special rates on the IRS. What is the new list of professions recognized as "high value added" in Portugal? What about professions that come out of NHR status? Lisbob, the expatriate assistant in Portugal, tells you all about the new NHR status.
Winners and losers for the new NHR status
The Portuguese tax authorities justify this change by the difficulties encountered by the country's employers in various sectors "to hire workers with different skills and qualifications profiles". The first list of professions with access to the NHR status, published in 2010, was based on the codes of economic activities, called CAE. The Finanças have now abandoned this model and now adopt "a model based on direct correspondence in the codes of the Portuguese Classification of Occupations (CPP)".
The Portuguese Ministry supervised by Mário Centeno states that this change allows "the most immediate clarification of the interpretative doubts about the scope and scope of each of the activities listed in the table, because for each occupation code, a job description is given which takes into account examples, as well as the professions included and excluded, and on the other hand to ensure a better accuracy in the statistical comparability at European and international level in the different fields in which this classification is applied ". Understand who can.
Bye bye architects, welcome to the pickers
The new list of professions with access to NHR status lists professional categories such as doctors, engineers, university professors or information and communication technology specialists. However, other professions, such as psychologists, architects, geologists or archaeologists, have simply disappeared.
New labor requirements include activities such as hotel, catering, trade and other services managers, farmers and skilled workers in the fields of agriculture and livestock farming, skilled loggers, fishing and hunting workers, or plant and machinery operators and assemblers.
The order adds that the first list published in 2010 was appropriate for the start of the NHR tax system and that, "once tested by practice, it should benefit from further improvements", as is happening now.
The new list is valid from 1 January 2020 and according to the assessment of the evolution of the economic situation of the country, it can be reviewed within three years.
Some details on the new NHR list
A person who currently benefits from NHR status for a profession not in the new list will retain his rights. On the other hand, a person who would have been refused NHR status before December 31, 2019 but whose profession would be included in the new list, will not be eligible for NHR status.
As a reminder, the non-habitual resident status was created in Portugal in 2009 to promote the growth of Portugal. This status allows you to benefit from favorable rates for taxation on income, or even a total exemption in some cases.
New list of recognized "high value added" professions for NHR status
Here is the official list of professions recognized as "high value added" and entitled to NHR status as from 1 January 2020, published by the Portuguese Government.
"List of high value-added activities within the meaning of Articles 72 (10) and 81 (5) of the IRS Code"
I - Professional activities (CPR codes) :
112 - Director General and Executive Director of companies ;
12 - Directors of Administrative and Commercial Services ;
13 - Directors of production and specialized services ;
14 - Director of hotel, restaurant, business and other services directors ;
21 - Specialists in the physical sciences, mathematics, engineering and related techniques ;
221 - Doctors ;
2261 - Dentists and stomatologists ;
231 - University and higher education teacher ;
25 - Experts in information and communication technologies (ICT) ;
264 - Authors, journalists and linguists ;
265 - Creative Arts and Entertainment Artists ;
31 - Technicians and Intermediate Occupations in Science and Engineering ;
35 - Information and Communication Technology Technicians ;
61 - Farmers and skilled workers in agriculture and livestock breeding for trade ;
62 - Skilled workers in forestry, fishing and hunting ;
7 - Skilled workers in industry, construction and crafts, including in particular metallurgy, metalworking, food processing, woodworking, clothing, crafts, printing, precision instrument manufacturing, jewelers, craftsmen, electrical and electronic workers ;
8 - Plant and machine operators and assembly workers, namely operators of stationary machines ;
Workers in the above mentioned professional activities must have at least the level of qualification of the European Qualifications Framework Level 4 or the International Type Classification of Education of level 35 or five years of duly justified professional experience.
II - Other professional activities :
Directors of companies promoting productive investments, as long as they are eligible for eligible projects and tax concession agreements concluded under the Investment Tax Code, approved by Legislative Decree No. 162 / 2014 of October 31 »