02 May 2025
Did you know that Portugal’s NHR tax scheme could significantly lower your tax burden as a Filipino expat? Understanding how to legally minimize taxes can help you send money to Philippines from Portugal without feeling financially burdened. By qualifying for the NHR scheme, you may benefit from reduced income tax rates or even exemptions on certain foreign incomes. This means more of your hard-earned euros stay in your pocket—and more support for loved ones back home.
Here is a clear overview of how the NHR scheme works and why it's beneficial for Filipino expats.
Portugal’s Non-Habitual Resident (NHR) scheme is a special tax regime introduced in 2009 to attract international residents, including skilled professionals and retirees. You can learn more about it on the Portuguese Tax Authority’s official page.
For Filipino expats, the NHR status can offer significant tax reductions on certain types of income, including pensions, salaries, and self-employment income earned abroad.
If you qualify, you can enjoy exemptions or lower flat tax rates, helping you save more while living and working in Portugal. This is especially important if you plan to remit part of your income to your family back in the Philippines.
You must meet specific residency requirements to be eligible for the NHR scheme. Filipino expats must not have been taxed as Portuguese residents for five years before applying. You should also stay in Portugal for more than 183 days in a year or establish a habitual residence there.
Applications for NHR status must be submitted to the Portuguese tax authorities before March 31st of the year following your move. Key documents include proof of residence, tax identification numbers, and evidence of previous non-residence in Portugal.
One of the biggest benefits for Filipino expats is the exemption from taxes on most foreign income, including pensions and certain employment earnings. Even if your income is taxable, the NHR status often reduces it to a flat 20% rate instead of the usual progressive tax rates.
Another advantage is the duration: once approved, the NHR benefits last for ten consecutive years, offering long-term financial security while you build a life in Portugal.
Many Filipino expats worry about double taxation — being taxed both in Portugal and the Philippines. However, Portugal has tax treaties with many countries, including provisions that often prevent double taxation.
Another common myth is that the NHR status is automatic. It isn’t—you must actively apply and get approval from the Portuguese tax authorities.
Here is how tax status impacts international money transfers and what expats should be aware of.
Having NHR status does not directly impact your ability to make a money transfer from Portugal to Philippines, but it improves your overall financial capacity. Since you can save more by paying less in taxes, you may have more disposable income to remit back home. However, large transfers may attract scrutiny from financial authorities. It’s important to document your income sources clearly and stay within legal financial reporting limits to avoid issues.
Choosing the right method to send funds is crucial. Instead of relying on traditional banks, many Filipino expats prefer digital money transfer services like ACE that offer lower fees, faster processing, and better exchange rates. These services provide a secure, convenient way to send money online to Philippines from Portugal without the hidden costs often associated with conventional banks.
Portuguese law requires residents, including those under the NHR scheme, to report worldwide income annually. It’s important to keep accurate records of your earnings and transfers. If you’re sending large amounts of money, consult a tax advisor to ensure compliance with both Portuguese regulations and any reporting requirements in the Philippines. Keeping your transactions transparent avoids any potential legal or tax troubles.
Filipino expats can benefit greatly by strategically timing their transfers. Monitoring currency exchange rates can help you send more money home when the rates are favorable. Scheduling transfers during periods of lower transaction fees or using platforms that offer promotional rates can also stretch your money further.
Filipino expats in Portugal can enjoy major tax advantages under the NHR scheme while optimizing their remittances back home. Explore the NHR scheme carefully, ensure full compliance, and use trusted platforms to confidently send money to the Philippines from Portugal to support your loved ones.
You would have to wait until a future opportunity or may lose eligibility, so timely application is crucial.
Yes, you can lose it if you fail to maintain your residency status or violate tax regulations.
Generally, personal remittances aren’t taxed in the Philippines, but large amounts should be properly documented.
While not mandatory, having a local bank account can simplify the remittance process and reduce fees.
Yes, using licensed, reputable digital platforms ensures security, faster delivery, and lower costs.
