What Was NHR?
The Non-Habitual Resident regime, introduced in 2009, allowed new Portuguese tax residents to benefit from a flat 20% tax rate on Portuguese-sourced income and potential exemption on foreign-sourced income — for 10 consecutive years. It attracted thousands of retirees, remote workers, and high earners to Portugal. The original NHR closed to new applicants at the end of 2023.
What Replaced NHR? The IFICI Scheme (2024)
| Original NHR | IFICI (NHR 2.0) | |
|---|---|---|
| Flat tax rate | 20% on PT income | 20% on PT income |
| Who qualifies | Any new tax resident | Specific high-value professions |
| Foreign income | Often exempt | Often exempt (profession-dependent) |
| Duration | 10 years | 10 years |
| Available to | Closed | Open from 2024 |
Who Qualifies for IFICI?
- Scientific research and R&D
- Highly qualified activities in technology, engineering, or sciences
- Startups and tech companies registered in Portugal
- Teaching in higher education
Grandfather Clause
If you were already registered for NHR before December 31, 2023, you keep your full 10-year NHR benefits.How to Apply for IFICI
- Become a Portuguese tax resident (183+ days/year in Portugal)
- Ensure you haven't been a Portuguese tax resident in the previous 5 years
- Apply through the Portuguese Tax Authority (AT) portal within 31 days of registering your address
- Submit proof of qualifying profession or activity
Get Professional Advice
Portuguese tax law is complex and changes frequently. Always consult a qualified Portuguese tax advisor before making decisions based on NHR or IFICI benefits.Planning to move to Portugal? Read our Portugal D7 Visa guide for everything you need to know about residency.