A manifesto signed by 59 people, including managers and former government officials, argues that the rationale presented for the end of the tax regime for non-habitual residents (NHR) provided for in the State Budget for 2024 (OE2024) was not “proven”.

In the document, it is recalled that “in recent years Portugal managed to attract relevant foreign investment” and that “this was only possible thanks to the growing capital of trust in the Portuguese economy”, giving an example of investments such as “the CALB electric battery factory or the SK Hynix semiconductor project.”

According to the document, “this positive context requires a considered analysis of all effective instruments to attract foreign capital, generating highly qualified employment”, highlighting that the non-habitual resident regime is part of “a fiscal strategy based on current paradigms of competitiveness global".

“So why end the NHR and close its doors when the numbers prove the success of this strategy?”, they asked.

The manifesto highlighted that “the stock of foreign direct investment (FDI) reached record levels this year”, adding that this “investment is an oxygen balloon” for the economy.

“The NHR opens the door to more FDI and foreign companies that play an important role in our economy: they pay higher salaries, employ more women in management and hire more qualified workers”, he highlighted.

“Surprise”

According to the document, “by attracting qualified human resources to our companies, the NHR combats the shortage of qualified management staff and the low productivity rate”. Thus, “the announcement of the end of the NHR caused surprise and concern among economic agents”, they indicated.

“In the absence of a public and credible study that justifies it, what is the rationale for this decision”, they questioned, ensuring that “at no time has it been proven that NHR has exhausted its usefulness”.

“Without the NHR, Portugal risks losing the only instrument capable of rescuing the qualified Portuguese who had to leave the country, at a time when around 48% of Portuguese people with higher education emigrated”, they assured, highlighting that “without instruments like the NHR, Portugal allows other countries to profit from our large investment in education”.

“The State Budget proposal is being discussed in the specialty and we look forward to the maintenance of all instruments essential to the competitiveness of the economy”, they indicated.

“It is urgent to adjust the NHR to the real needs, present and future, of our economy, maintaining this important pillar in capturing external value“, they appealed, highlighting that “otherwise” Portugal will lose “more FDI, foreign companies and human talent for 26 European economies that wisely maintain fiscal instruments like the NHR”.

Among the 59 subscribers are Vasco de Mello, Rui Miguel Nabeiro, Pedro Carvalho, executive president (CEO) of Tranquilidade/Generalli, Gonçalo Conceição, CEO of Viúva Lamego, João Moreira Rato and the former secretaries of State for Fiscal Affairs Carlos Lobo and Paulo Nuncio.