Important: the Non-Habitual Residency (NHR) regime closed to new applicants at the end of 2024, with a transition period running to March 2025. It was replaced by IFICI, often referred to as NHR 2.0, which is substantially narrower. Those who obtained NHR status before the regime closed keep their benefits for the remainder of the 10-year period.

What IFICI offers: a flat 20% rate on eligible Portuguese-source income from qualifying activities, and exemptions on most categories of foreign-source income, for a period of up to 10 consecutive years.

To qualify, you must become a Portuguese tax resident, must not have been tax resident in Portugal in any of the previous five years, and must carry out a recognised activity in fields such as scientific research, technology, innovation or qualified investment, subject to defined academic and professional criteria.

Foreign pensions are now taxed at the normal progressive rates. The reduced rate that applied to pension income under the former NHR regime is no longer available to new applicants.

Who qualifies today: IFICI is directed at professionals working in high-value sectors — scientific research, technology and innovation — who meet defined academic and professional criteria, and who have not been Portuguese tax residents in the previous five years. Importantly, retirees and individuals whose income is primarily passive no longer receive the benefits associated with the former NHR regime. If you are considering relocating to Portugal, we recommend speaking with a qualified tax adviser about your specific circumstances — we are happy to introduce you to specialists we work with.