Tax is often the deciding factor when relocating to or investing in Portugal. The headline news: the long-running Non-Habitual Resident (NHR) regime, which offered generous breaks to newcomers, has closed to new arrivals (with limited transitional cases). A narrower successor — the IFICI regime (Incentivo Fiscal à Investigação Científica e Inovação), often nicknamed “NHR 2.0” — has taken its place for qualified roles in science, research and innovation.
Key points
- Classic NHR is closed to new applicants; if you already hold it, your existing benefits run their course.
- The successor regime, IFICI (“NHR 2.0”), offers a 20% flat rate on eligible Portuguese professional income for up to 10 years, but targets specific high-value professions in science, technology and innovation — eligibility is much narrower than the old NHR, and pensions are no longer covered.
- Tax residency generally arises if you spend 183+ days in Portugal in a year, or have your habitual home there; residents are taxed on worldwide income.
- Rental income from Portuguese property is commonly taxed at a flat rate for non-residents, with options for residents — rates and allowances vary.
Get this right
Portuguese tax rules are detailed and change frequently, and the right structure depends entirely on your circumstances. This page is general information, not tax advice. Before relocating, buying or letting, speak to a qualified Portuguese tax adviser. For purchase taxes, see costs, taxes & fees; for residency routes, see the Golden Visa page.