The number of taxpayers benefiting from the tax regime associated with the Regressar program reached 2,703, increasing 178% compared to the universe contemplated in 2019, according to data from the Ministry of Finance.
In response to Lusa, the Ministry of Finance said that in 2021 (the last year for which data is available) there were 2,703 taxpayers who “invoked the tax exclusion regime of the Regressar program” for IRS.
In 2019, there were 972 taxpayers who asked to be taxed under the ‘Return’ rules, a number that increased to 2,134 taxpayers the following year.
The tax regime of the Regressar program provides for the exclusion from [IRS] taxation of “50% of the income from dependent employment and business and professional income of taxpayers who, by becoming fiscally resident in 2019, 2020, 2021, 2022 or 2023” have been fiscally resident in Portugal before December 31, 2015 or before December 31, 2017, 2018 and 2020.
Each person can benefit from this regime for five years, and the option for ‘Return’ prevents one from benefiting from the NHR (with different rules and granted for 10 years).
This program was originally intended to run for two years (2019 and 2020), but the government decided to extend it until 2023, as the pandemic ultimately prevented it from running smoothly.
To benefit from this regime, taxpayers do not have to request it, but only invoke its application when they file their annual personal income tax return, and the control of the verification of the requirements is done by the Tax and Customs Authority “when the respective tax return is filed.
