The survey, which included over 1,000 expats, highlights that many affluent international families in Portugal benefiting from NHR tax status could face substantial financial risks if they do not plan their income and assets early in their 10-year NHR tax benefit period.

A representative from Portugal Pathways, a digital platform assisting affluent expats in Portugal, commented: "We were surprised to find that many NHR tax status families in Portugal were unaware of the importance of seeking professional advice as early as possible. If they act early before it’s too late, there are options available, potentially saving millions in tax."

"We have had several individuals contact Portugal Pathways who are 8 or 9 years into their NHR tax benefit. We connected them with the right professional advisors, but due to the delay, they struggled to avoid significant tax increases at the end of their NHR tax period."

The report highlights that international families who have relocated to Portugal enjoy the lifestyle, cost of living, culture, healthcare, safety, and security. However, they often postpone managing their finances, assets, and income for long-term protection, not just under NHR.

Antonio Cirilo, who lives in Lisbon, shared: "This was a real eye-opener for us. We have been living in Lisbon for 4 years, enjoying the lifestyle and low tax status that NHR provides. Only recently did we seek professional advice from a cross-border wealth manager and tax expert.

Fortunately, we acted early enough and now have a plan to mitigate these high taxes that we were unprepared for. If we had waited another year or so, it would have been very difficult for us to afford to stay in Portugal."

"Our advice to anyone in our situation is to consult with an advisor early in your NHR tax benefit period. This way, you can create a plan and continue to enjoy life in Portugal with peace of mind for the future."

Niall Macdonald, a wealth manager based in Portugal, remarked: "It's understandable that people delay this process as they prefer to enjoy life rather than consult with professional advisors about tax matters, but it is essential that they do so early when they receive NHR tax status."

The report reveals that up to 73% of the estimated 72,000 expats with NHR tax status in Portugal could face a significant increase in tax liabilities once their NHR status expires, with potential tax rates escalating to 48%.

Portugal Pathways offers to arrange a free no obligation discovery call to NHR tax holders seeking clarity about their situation with professional advisors and also you will receive a free copy of the latest ‘Wealthy Exapts in Portugal Survey Report 2024/25’. Early action is crucial, as unmanaged future tax issues can significantly impact long-term financial security.

Credits: Supplied Image; Author: Client;


By implementing a personalised cross-border structured plan for their income and assets, many affluent NHR tax holders can continue to enjoy their lives without the unintended consequences of failing to seek professional advice and ensuring peace of mind for the long term in Portugal.