Non-habitual tax regime

NON‑HABITUAL RESIDENT TAX REGIME (NHR) 

What was the NHR regime?

The Non‑Habitual Resident (NHR) tax regime was created in 2009 and granted significant tax benefits for 10 years to individuals who became tax residents in Portugal and had not been tax residents in the previous five years.

As of 31 December 2023, the NHR regime is no longer available for new applicants, except for specific transitional situations defined by law.

What has changed?

With the 2024 State Budget, the NHR regime was revoked for new registrations and replaced by a new framework:

Tax Incentive Scheme for Scientific, Technological and Innovation Activities

This new regime applies only to specific professional categories and strategic sectors, with more restrictive eligibility criteria.

Who can still apply for the old NHR?

Only the following situations remain eligible:

• Individuals who became tax residents in Portugal on or before 31/12/2023 and had not yet applied for NHR

• Individuals covered by transitional rules (e.g., employment contracts, rental agreements, or relocation processes initiated before 31/12/2023)

All other cases fall under the new incentive regime.

How does the new regime work (2024/2025)?

The new regime grants tax benefits for 10 consecutive years, but only for individuals working in strategic areas such as:

• Scientific research

• Technology and innovation

• Higher education

• Highly qualified professions

• Key roles in companies with relevant economic impact

Main benefits:

• 20% flat tax rate on employment and self‑employment income earned in Portugal

• Exemptions or reductions on foreign‑sourced income, depending on applicable tax treaties

• Valid for 10 years

Do existing NHR holders keep their benefits?

Yes. Anyone who obtained NHR status before 2024 keeps:

• All benefits for the full 10‑year period

• The 20% special tax rate for high‑value‑added professions

• Possible exemptions on foreign‑sourced income, depending on tax treaties

Requirements to be considered a tax resident in Portugal

You are considered a Portuguese tax resident if you meet one of the following:

• Stay in Portugal more than 183 days in a year, or

• Have a home in Portugal that suggests the intention of habitual residence

Important Note

This information is for general guidance only and does not constitute legal or tax advice. A qualified tax advisor or lawyer should always be consulted for case‑specific analysis.