The status of "Non habitual Resident" has already been awarded by the Portuguese authorities in 5653 foreigners, allowing them to enjoy exemptions and reduced rates in the context of income tax (IRS). The tax administration is currently analyzing new applications in 1754, the vast majority of stakeholders being retired French, Swedish and Finnish.
The status of "Non habitual Resident" was created in 2009, but the growth in demand was seen especially from the extension of this scheme to pensioners in 2013, allowing them to enjoy total exemption from taxes on private pensions.
According to data provided by the Ministry of Finance to the newspaper "DN / Dinheiro Vivo" 7921 requests for applying this scheme were received by the authorities, 5653 were approved and 514 were turned down. 1754 requests are under review.
In 2014, 801 retirees have obtained the status of "Non habitual Resident", the majority being French (327), Sweden (128) and Finland (87), but also the English, Germans, Brazilians and Tunisians.
Dennis Green, Eurofinesco agency, believes that many pensioners choose Portugal because of the climate, the beaches and the Portuguese life cost, but the vast majority decided to move because of this tax regime which allows them to do paying taxes on their pensions for ten years.
However, some countries such as the Netherlands and Finland shall consider taking action on this "tax competition" Portuguese.