Non-Habitual Resident - canada tax on canada dividends

If you have the nhr status, dividends will not be subject to Portuguese tax for the duration of the nhr status as the double tax treaty provides (article 10 of the double tax treaty) that Canada has the right (doe not have to exercise that right if for some reason it does not want to). Meanwhile the nhr law provides that if the source country 'possam' ie can, tax the income, then it is not subject to tax  (article 81 - 4a of the Portuguese tax code).

However, if you live in Canada most of the time (more than 183 days per year), why would you want the nhr status, and the possible complication of some of your income possibly becoming subject to Portuguese taxes - at a minimum, you would have declaratory obligations. Perhaps rather wait until you retire (if the benefits are still in the statute books). Owning property is not a reason to become a tax resident (if you don't want to)

Thank you TonyJ1 for the reply.
The main reason for me wanting the nhr is to only pay 10% canadian tax on the dividends and no other tax in Portugal.
This is what was explained to me but it seems too good to be true...quando a esmola e grande, o pobre desconfia lol

If you are tax resideny in Portugal under the nhr, the Canadian dividends would not incur further taxes in Portugal whilst you are entitled to the nhr status. You should read the rules on dividends in the double tax treaty - article 10. In my reading of the article, Canada can charge 15% - you are not a company - this is where the 10% rate applies.

This also presumes that Canada does not consider you to be resident - read the article on residence in the dta - article 4

Under the NHR regime, dividends are 99.99% of the time tax exempt in Portugal (this is due to the wording adopted in the double taxation agreements entered into by Portugal). This means that you'll only have to pay Canadian withholding tax (if any).

It is my understanding that the law was changed last year. Under NHR regime, dividends and retirement income incur 10% tax, unlike the previous years, which cause 0% tax for the first 10 years. I don't have the answer nor the recommendation of tax lawyers or accountants, but I also want to find out as I am likely becoming a tax resident this year.

No changes to the rules on dividends - under the Portugal Canada double tax treaty, Canada may impose a 15% on dividends. I suggest you read the article on pensions (article 18) on the double tax treaty. In some circumstances Canada may impose taxes on pensions as well