NHSR: LIST OF HIGH VALUE-ADDED PROFESSIONS CHANGES
The list of «high value-added» professions that qualify for RNH status in Portugal has changed. Professions such as psychologists, architects, designers, and archaeologists are no longer included among the occupations eligible for RNH status. Others, such as hotel and restaurant managers and dentists, are eligible for the RNH.
The Portuguese government has revised the list of recognized professional activities, as well as high value-added and which entitled individuals to non-habitual resident status. According to the ordinance published on Tuesday, Portugal’s economic situation has changed considerably since the publication of this table of economic activities, with a significant shift in the dynamics of job creation.
Changes to the list
The Portuguese government justifies this change by citing the difficulties employers face in hiring workers with diverse skill sets and qualifications. The first list, published in 2010, was based on economic activity codes, known as CAE. This model has just been replaced by one based on direct correspondence with the codes of the Portuguese Classification of Occupations (CPP).
What are the changes?
The new list of professions eligible for RNH status includes occupational categories such as doctors, engineers, university professors, and information and communication technology specialists. However, other professions, such as Psychologists, architects, geologists, and archaeologists have simply disappeared.
Labor market needs have changed significantly in recent years, and new sectors are now included. Such as managers in the hotel industry, the restaurant and retail industries and other service sectors; farmers and skilled workers in agriculture and livestock farming; skilled forestry workers; fishing and hunting workers; and factory and machine operators, as well as assemblers.
This new list takes effect as of as of January 1, 2020 and, depending on an assessment of the country's economic situation, it may be revised within three years.
What about those who already have non-habitual resident status?
Don't worry—if you were granted non-habitual resident status in the past, your status will not be called into question. However, a person who has been were denied RNH status before December 31, 2019 but whose profession would be included in the new list will not be eligible for RNH status again.
The New List
List of high-value-added activities as defined in Articles 72(10) and 81(5) of the IRS Code
- I – Professional Activities (RPC codes):
- 112 – Chief Executive Officer and Executive Director of companies;
- 12 – Directors of Administrative and Sales Services;
- 13 – Directors of Production and Specialized Services;
- 14 – Managers of hotels, restaurants, retail establishments, and other service businesses;
- 21 – Specialists in the physical sciences, mathematics, engineering, and related fields;
- 221 – Physicians;
- 2261 – Dentists and stomatologists;
- 231 – College and university professor;
- 25 – Information and Communication Technology (ICT) Experts;
- 264 – Authors, journalists, and linguists;
- 265 – Creative and performing artists;
- 31 – Technicians and Associate Professionals in Science and Engineering;
- 35 – Information and Communication Technology Technicians;
- 61 – Farmers and skilled workers in crop and livestock farming for commercial purposes;
- 62 – Skilled workers in the forestry, fishing, and hunting industries;
- 7 – Skilled workers in industry, construction, and the trades, including, in particular, metallurgy, metalworking, food processing, woodworking, apparel, crafts, printing, precision instrument manufacturing, jewelers, artisans, and electrical and electronics workers;
- 8 – Plant and machine operators and assembly workers, specifically operators of stationary machines;
Individuals engaged in the specified professional activities must have at least the European managerial qualification level, Level 4 certifications, or Level 35 of the International Standard Classification of Education (ISCED). Alternatively, they must be able to demonstrate five years of professional experience.
Other professional activities:
Company executives who can demonstrate that they are making productive investments, provided that such investments are eligible under the projects and tax incentive agreements established pursuant to the Investment Tax Code and approved by Decree-Law No. 162/2014 of October 31.
As of the time of this article's publication, the new list has not yet taken effect. Before taking any action, we strongly urge you to contact us in order to review your situation.
As stated in the article, once the new list takes effect, any application rejected by the tax authorities cannot be appealed. It is therefore essential to carefully review your tax, professional, and personal circumstances.
