Cautious optimism for investors as NHR survives amid Portuguese PM resignation

It appears that the end of the Non Habitual Tax Regime is no longer on the immediate agenda, which is positive news for investors in Portugal, argues Global Citizen Solutions.

This shift in focus is a result of Prime Minister António Costa's resignation, which has been accepted by the President of the Republic (it hit the headlines on 7 November).   

As the President of the Republic prepares for consultations with various political parties and the Council of State, the possibility of early elections is looming.

Consequently, there will be a need for a new budget plan as the ongoing legislative process for the Government's Proposed State Budget law for 2024 may be disrupted, and the new government, whether formed through elections or other means, will have to reinitiate the process of approving a new State Budget law.

Global Citizen Solutions' Gizane Campos said: "The political landscape in Portugal is in flux, and it remains to be seen how this will impact various policy initiatives, including the Non Habitual Tax Regime, which is why investors should take advantage on this extra time lease.

"Although there is no guarantee that a new government will not propose a similar bill to end the NHR, it will certainly take a few months until the new state budget is approved."