Portugal offers a tax incentive for certain new residents, but it is now limited to specific profiles.
End of the NHR Regime (Non-Habitual Resident)
The former NHR regime has been closed to new residents since 1 January 2024. Only people already registered, or covered by the transitional cases provided for 2024, still benefit from it until their 10-year period ends.
IFICI Regime (“NHR 2.0”)
The tax incentive for scientific research and innovation (IFICI, article 58-A of the Estatuto dos Benefícios Fiscais) has taken over:
- Conditions: become a Portuguese tax resident without having been one in the previous 5 years, never have benefited from NHR, and carry out an eligible activity
- Eligible activities: higher education teaching and scientific research, qualified R&D jobs, highly qualified professions in certain companies, jobs in certified startups, activities recognised by AICEP or IAPMEI, and certain activities in the Azores and Madeira
- Rate: 20% on net employment and self-employment income from these activities
- Foreign-source income: generally exempt, except pensions; income from listed jurisdictions with a clearly more favourable tax regime is taxed at 35%
- Duration: 10 consecutive years
- Application: on the Portal das Finanças, by 15 January of the year after the one in which you become tax resident
Retirees: IFICI does not cover pensions. Foreign pensions are taxed under the general IRS rules (progressive brackets below).
Check your eligibility with the AT (Autoridade Tributária) or a tax adviser before making any decision. Official sources: Portal das Finanças IFICI FAQ, article 58-A EBF.
| Income Bracket | Rate |
|---|
| 0 - 7,703 EUR | 14.5% |
| 7,704 - 11,623 EUR | 21% |
| 11,624 - 16,472 EUR | 26.5% |
| 16,473 - 25,292 EUR | 28.5% |
| 25,293 - 37,043 EUR | 35% |
| 37,044 - 80,882 EUR | 43.5% |
| Over 80,882 EUR | 48% |
