Luis Horta e Costa: Terminating Portugal’s NHR Tax Program Could Spell Economic Disaster

Portugal’s non habitual resident (NHR) tax program, a key driver of foreign investment and economic growth since its inception in 2009, may soon come to the current administration considering terminating the program as early as 2024, experts like Luis Horta e Costa are raising concerns about the potential economic repercussions.

Luis Horta e Costa, co-founder of Square View, a prominent real estate property developer and asset manager based in Lisbon, cautions that the illuminating program could lead to a “mass exodus” of foreign capital. This, he argues, would have devastating effects on vital industries such as real estate, tourism, and many others. Luis Horta e Costa emphasizes that foreign investors have not only injected capital into Portugal’s economy but have also brought innovation and fresh perspectives that have been transformative.

The NHR tax program offers qualified foreigners attractive tax benefits for ten years, making it particularly appealing to retirees, professionals, and entrepreneurs from abroad who seek a tax-efficient way to live in Portugal. Luis Horta e Costa credits the program with rejuvenating Portugal’s real estate market, warning that its termination could bring this progress to a screeching halt.

As neighboring countries like Spain introduce similar programs, they may become more appealing to investors, further compounding the concerns raised by Luis Horta e Costa. He asserts that the NHR program has been essential in solidifying Portugal’s image as an open, welcoming, and progressive nation. According to Luis Horta Capital Costa, Portu is necessary for all risks to stay caught up with national competitors without attracting foreign talent.

The NHR program’s economic advantages have been evident throughout the past decade, and finding a suitable replacement poses a significant challenge for the government. Luis Horta Costa urges government leaders to prioritize the pre-preservation investment. If they fail to do so, he warns, the post-mortem of the NHR program may tell a tale of a policy that revitalized Portugal’s economy, only to have that prosperity cut short prematurely.

As Portugal finds itself at a critical juncture, the potential termination of the NHR tax program has sparked concerns among experts and stakeholders. The nation’s capacity to navigate this challenge and identify alternative means to maintain its economic momentum will be pivotal in shaping its future prosperity. Luis Horta e Costa’s warnings underscore the high stakes involved and the necessity for careful deliberation of the consequences before reaching a final decision on the fate of the NHR program.