NHR Portugal Program: All You Need to Know

Portugal’s Old NHR Program

Portugal’s Non-Habitual Resident (NHR) program was a tax incentive from the Portuguese government. It offered substantial tax advantages on both Portuguese and foreign-sourced income for 10 years.

The NHR Portugal was launched in 2009 to attract retirees, entrepreneurs, investors, and remote workers seeking a stable country in the European Union with competitive tax advantages.

The NHR tax benefits statute was the legal framework that outlined the rules and tax advantages of the NHR program. Current NHR holders do not need to meet fixed minimum or maximum stay requirements.

What were the tax benefits of NHR in Portugal?

The benefits of the old NHR status in Portugal included:

• 20 percent flat tax rate on qualifying Portuguese employment or self-employment income
• Special Portuguese personal income tax rate for 10 years
• Tax exemption on many types of foreign-sourced income (such as foreign dividends, interest, capital gains, and rental income)
• No wealth tax
• No restrictions on transferring foreign funds into Portugal
• Become part of a white-listed tax environment
• Tax exemption for gifts or inheritance to direct family members

What were the requirements of the NHR Portugal tax regime?

To become a non-habitual resident in Portugal, you had to meet the following eligibility criteria:

• Have the legal right to live in Portugal. You can get this through EU/EEA/Swiss citizenship or by securing a residency visa such as the Portugal Golden Visa, D7 (Retirement or Passive Income Visa), D8 (Digital Nomad Visa), or D3 Visa (for highly qualified professionals).
• You must not have been a Portuguese tax resident in the previous five years.

To become a tax resident, you need to spend 183+ days in Portugal or have a main home there. Purchasing residential property in Portugal can be useful, although it is not mandatory. You can use the property deed as proof that you have established residence.

Another, more affordable option is to rent a property in Portugal, such as an apartment or a house. A 12-month rental contract is enough to prove residency.

Portugal NHR and double taxation agreements

A major advantage of the Portuguese non-habitual resident regime came from its double taxation agreements (DTAs).

These agreements often mean that if you earn income in another country with a DTA with your home country, you can reduce or prevent double taxation. It offers tax relief on your foreign-sourced income.

As a result, Portugal’s NHR did not tax most foreign income received by residents with NHR status, making that income effectively tax-free in Portugal.

Portugal has DTAs with 81 countries, and even where no agreement exists, the OECD Model Tax Rules can still apply.

What has replaced NHR in Portugal?

In 2024, Portugal phased out the NHR regime and introduced the Incentivized Tax Status (ITS) program – officially called the Tax Incentive for Scientific Research and Innovation (IFICI).

This new tax incentive attracts foreigners in highly qualified professions, mainly in fields such as science, research, and innovation. However, these tax benefits are more limited in scope than those under the old NHR status and come with stricter eligibility criteria.

The table below covers the main differences between the Portugal NHR and IFICI programs:

The New NHR Program (IFICI) in 2026

The Tax Incentive for Scientific Research and Innovation (IFICI), often called NHR 2.0, is designed to attract high-skilled professionals.

Sectors that qualify for the NHR 2.0 in Portugal include:

• Information, telecommunications, and technology
• Manufacturing
• Forestry, aquaculture, and agriculture
• Audiovisual and multimedia production

If you don’t work in any of the eligible professions, you can still qualify for the new Portugal NHR 2.0 if you meet one of these requirements:

• Work for an IAPMEI or AICEP certified company
• Participate in an R&D project that falls under the SIFIDE tax incentive program
• Join as an employee or a director of a recognized Portuguese startup
• Keep your tax residency or job in the Azores or Madeira

Eligibility Criteria for the New Foreign Tax Regime of Portugal

The NHR 2.0 Portugal requires expats to establish Portuguese residency. Before you can register your tax residency, you need a Portuguese NIF number (Número de Identificação Fiscal) from the local tax office.

Here is how to obtain tax residency in Portugal as a foreigner:

• EU/EEA/Swiss citizens: You can register your residence at the local municipal office without a visa. You will need a valid passport and a European Health Insurance Card (EHIC).
• Non-EU/EEA/Swiss citizens: You must obtain a Portuguese residence permit, most commonly through the following visa routes. For example, the Portuguese Golden Visa requires you to invest at least €250,000 in a qualified cultural project, €500,000 in an approved investment fund, or the same amount in scientific research. In return, you can obtain a five-year residence permit. The Portugal D7 Visa is open to foreigners with passive income from financial assets, foreign pensions, real estate, or intellectual property. To meet the eligibility criteria, you need at least €11,040 as the main applicant, €5,520 for a spouse, and €3,312 for each dependent child.

For more information on how to obtain a residence permit, check our ultimate step-by-step guide to Portuguese residency.

Tax Under the NHR Portugal Tax Regime

The Portugal NHR tax regime values particular skilled workers and provides special tax benefits and exemptions.

Here is a list of eligible professions under the NHR 2.0:

• Specialists in information and communication technologies (ICT)
• Directors of production and specialized services
• Skilled workers in industry, construction, and crafts (i.e. metallurgy, food processing, textiles, electronics, and precision instruments)
• Authors, journalists, and linguists
• General directors and executive managers of companies
• Technicians and intermediate-level professionals in science and engineering
• Installation and machine operators, including assembly line workers
• Directors of administrative and commercial services
• Creative and performing arts professionals
• University and higher education professors
• Skilled workers in forestry, fishing, and hunting (market-oriented)
• Directors in hospitality, retail, and other service sectors
• Specialists in physical sciences, mathematics, engineering, and related fields
• Market-oriented farmers and skilled workers in agriculture and animal production

Other professionals can also qualify for Portugal NHR 2.0, including company administrators and managers who promote productive investment, as long as they work on approved projects and hold contracts that provide tax benefits.

Qualification requirement

Workers in the professions listed above must have:

• At least Level 4 of the European Qualifications Framework (EQF), or
• Level 5 of the International Standard Classification of Education (ISCED), or
• At least five years of duly proven professional experience

Portugal ITS (NHR 2.0) Income Types: Quick Overview

Portugal NHR 2.0 grants tax benefits to highly qualified professionals who become Portuguese tax residents for a non-renewable period of 10 consecutive years, starting from the year they register.

Under the NHR 2.0 regime, Portugal taxes employment income (Category A) and self-employment income (Category B) at a flat rate of 20 percent for eligible professionals, instead of applying progressive rates of up to 53 percent. Portugal taxes all other Portuguese-sourced income under standard personal income tax rules.

Portugal requires residents to declare worldwide income, and it may exempt or tax foreign-sourced income depending on domestic rules and applicable double tax treaties. It uses declared global income to determine the applicable tax rate on income subject to progressive taxation. For more details, read our ultimate guide to taxes in Portugal for foreigners.

NHR Portugal Tax Rates on Foreign-Sourced Income

Portugal taxes income differently depending on the source, such as Portuguese employment income, self-employment or freelance income, and foreign income. We suggest consulting with a tax advisor to calculate your NHR tax Portugal. Here are the different tax rates for foreign-sourced income.

Employment income tax

If you work in one of the eligible high-value professions, Portugal applies a 20 percent flat tax rate.

If the job does not qualify, Portuguese tax residents are taxed on their global income at progressive rates. In 2026, the personal income tax rates vary from 12.50 percent to 48 percent.

Self-employment income tax

Self-employment income follows the same rules. Eligible activities are taxed at a 20 percent flat rate. On the other hand, non-eligible activities are taxed at standard progressive rates.

Taxes on royalties and income from financial assets

Under the NHR 2.0 Portugal, there is no tax exemption on royalties, dividends, and interest. You get taxed based on standard personal income tax (IRS) rates from 12.50 percent to 48 percent.

In some cases, investment income such as dividends, interest, and capital gains that is not included in aggregation is taxed at a flat rate of 28 percent.

Real estate income and capital gains tax

The capital gains tax in Portugal is often a 28 percent flat rate. However, only 50 percent of the capital gains from the sale of shares in micro and small companies that are not listed on a stock exchange are subject to taxation.

Note: Tax exemptions may apply depending on whether the source country taxes the income under a double tax treaty (DTA) or the OECD Model Tax Convention.

Tax on capital gains from the disposal of securities

Capital gains from securities are also taxed under standard IRS rules, unless specific foreign-source relief or treaty benefits apply.

Pension income tax

Under the Non-Habitual Residence in Portugal (NHR), foreign pensions were often taxed at a flat 10 percent rate. That tax benefit no longer exists.

Under the new NHR 2.0, foreign pensions are taxed at standard Portuguese IRS from 12.5 percent to 48 percent.

Are you weighing your expenses? Check our article on the cost of living in Portugal.

Portuguese tax table

To calculate your tax according to your income, use the Non-Habitual Resident Portugal Tax Calculator below:

Source: Portuguese tax authority

Who can be a non-habitual resident in Portugal?

The NHR was open to all non-EU and EU nationals who met specific economic or professional eligibility criteria. You could receive an NHR status if you:

• Became a Portuguese tax resident by spending over 183 days in Portugal in a year, or maintaining a habitual residence there
• Haven’t received a Portuguese tax residency in the last five years

Can a US citizen apply for NHR?

No one can apply for the old NHR Portugal tax regime anymore, not even US citizens. The only available option is the IFICI (Tax Incentives for Scientific Research and Innovation), also known as NHR 2.0.

NHR regime for UK citizens

The Non-Habitual Resident (NHR) in Portugal doesn’t exist anymore, which means UK citizens cannot apply. But, highly qualified professionals who meet the eligibility criteria can qualify for the new NHR 2.0.

How to apply for NHR in Portugal?

You can no longer apply for Portugal’s NHR tax regime, but if you want to obtain the tax benefits of the NHR 2.0 (IFICI), follow the application process below:

• Step 1: Obtain a NIF in Portugal (Número de Identificação Fiscal) from the local tax authorities, citizen shop, or online via a fiscal representative. Provide a valid passport or ID card.
• Step 2: Check if your work qualifies in NHR 2.0 fields (i.e., research, innovation, or business development). The Portuguese tax authority can request an employment contract or other documents. Sometimes, other institutions can also verify your documents, mainly FCT (for research roles) or IAPMEI / AICEP (for certified companies or eligible investment projects).
• Step 3: After you become a Portuguese tax resident, log in to the official Portuguese government website. Visit the IFICI/NHR tab, fill out the application form, and upload all required documents. In cases such as these, it can be beneficial to work with a tax accountant.
• Step 4: Wait for processing, which can take a couple of months. You can track your application through “Consultar Pedidos”. If the authorities approve your application, your status changes to “Deferido”, which means you can use the IFICI tax benefits.

Goldcrest: How We Can Help You

Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments, rental services, and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team is here to discuss your needs, assist you with your real estate doubts, and offer insightful expertise and strategic advice. We are focused on securing the best deal for you.

The following articles may also be of interest to you:

• Is Portugal Safe to Visit?
• How to Retire in Portugal
• Living in Portugal
• Portugal Quality of Life