NHR Tax Regime in Portugal: What You Need to Know in 2025

Portugal's Non-Habitual Resident (NHR) tax regime (Residente Não Habitual) has been one of the most attractive tax incentives in Europe. Here's what you need to know about the current situation.

What Was the NHR?

The NHR regime, introduced in 2009, offered significant tax benefits to new residents in Portugal:

10-year duration - Benefits lasting a decade

Flat 20% rate - On Portuguese-source income from "high value-added" activities

Tax exemptions - On many types of foreign income

Pension benefits - Reduced tax rates on foreign pensions

2024 Changes

The Portuguese government announced significant changes to the NHR regime in late 2023:

End of New Applications

The traditional NHR is no longer available to new applicants as of 2024.

Transition Rules

Those who:

Had residence permits before January 1, 2024

Were in the process of applying

May still qualify under transitional provisions.

New "Incentivized Tax Regime"

A new regime has been introduced for:

Scientific research and innovation

Teaching in higher education

Highly qualified activities for certified companies

What This Means for Expats

Current NHR Holders

If you already have NHR status, your benefits continue for the full 10-year period.

New Arrivals

You'll need to explore alternative options:

Standard Portuguese tax rates

The new incentivized regime (if eligible)

Business structures and optimization strategies

Important Tax Terms

Residente fiscal - Tax resident

Declaração de IRS - Income tax return

Número de contribuinte (NIF) - Tax identification number

Finanças - Tax office

Contabilista - Accountant

Professional Advice

Tax planning is complex. Always consult with:

A Portuguese tax advisor (consultor fiscal)

A certified accountant

Legal professionals specializing in immigration

Portugal remains attractive for many reasons beyond tax benefits. Boa sorte! (Good luck!)