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Updated: June 2026

Case study · Portugal · Residence permit

How Portugal's Residence Permit and Preferential TaxRegime Reduced Taxes for an IT Entrepreneur

Many come seeking Portugal's preferential tax regime, remembering the old NHR, but it has been closed, and a new, narrower IFICI regime has taken its place, which requires qualification. Michael, an IT entrepreneur, was paying resident tax rates up to 48% and wanted tax benefits. We explain how through Golden Visa and the IFICI regime we legally reduced his taxes.

Dmitry NagyDmitry NagyInternational Tax Consultant, BRIDGESReading time9 min readVerificationReviewed by an expert

This case is based on a real matter. The name and certain identifying details have been changed to protect confidentiality.

BRIDGES client story - How Portugal's Residence Permit and Preferential Tax Regime Reduced Taxes for an IT Entrepreneur
Contents

Case at a glance

Situation, solution and outcome in seven lines

Client
Michael, approximately 52 years old, IT company owner, from Miami
Objective
European base + tax reduction (paying up to 48%)
Program
Portugal, Golden Visa (Residence Permit through investment fund, pathway to EU passport)
Key Considerations
Old NHR closed, new IFICI regime in effect (NHR 2.0) - narrow scope
Solution
Golden Visa through fund + qualification under IFICI as IT specialist
Result
Preferential 20% rate for 10 years, taxes on international dividends reduced
Outcome
Status and preferential regime obtained

Client story

Client's Story

Where they started

Michael is an IT entrepreneur with a company and complex income streams, including international dividends and stock options from the United States. He wanted to relocate his business base to Europe but faced the reality that resident tax rates in some countries reach 48%. His goal was strategic and tax-focused: to obtain residency status while not surrendering half his income to taxes.

Why the standard route did not work

Many in such a situation recall Portugal's famous NHR (Non-Habitual Resident) regime—a preferential tax status that expatriates have enjoyed for years. And here is the first important thing to know today: the old NHR for new applicants is closed. You can no longer apply for it.

What BRIDGES had to solve

But this is not a dead end. The old NHR has been replaced by a new regime—IFICI (called NHR 2.0): it maintains the preferential fixed rate of 20% for 10 years, but has become significantly narrower—it does not apply to everyone, but only to specific categories: scientists, technology specialists, startup founders, exporters. Michael with his IT company fell into the category of those eligible to qualify for IFICI as a qualified technology sector specialist.

Why a standard answer would not do

Michael approached BRIDGES understanding that the task was not to "obtain the old NHR"—it no longer exists—but to connect two things: obtain Portugal residence through Golden Visa and properly qualify under the new IFICI regime, so that his international income would be taxed at the preferential rate rather than the resident rate of 48%.

I was paying resident tax rates around 48% and wanted to move to Europe with tax benefits. I heard about the Portuguese NHR—but it turned out they closed it for new applicants. I thought it was all over. Dmitry explained that there is a new regime, IFICI, NHR 2.0: 20% rate for 10 years, but it is narrow and requires qualification. With my IT company, I qualified as a technology specialist. We arranged Golden Visa through a fund and qualification under IFICI. Taxes on international income genuinely decreased. The old NHR is gone, but there is a working alternative.

Maykl, 52 · Michael, IT CompanyThe name and certain identifying details have been changed to protect confidentiality.

Key Points to Consider

Key Points to Consider

Many come seeking the old Portuguese NHR, but it has been closed to new applicants. It has been replaced by IFICI (NHR 2.0): the same preferential 20% rate for 10 years, but the regime is narrow—only specific categories qualify. It is important not to count on the discontinued NHR but to properly qualify under the new regime.

Old NHR closed for new applicants;

  1. 01New IFICI regime in effect (NHR 2.0)—20% rate for 10 years;
  2. 02IFICI is narrow: scientists, IT specialists, startup founders, exporters;
  3. 03Proper qualification under the regime is required;
  4. 04Residence through Golden Visa—foundation for tax residency.

The logic of the solution

How the matter progressed: from checks to result

The chart is built from the facts of this matter and shows the logic of the work without decorative or unverified data.

  1. 01
    Stage 1

    We immediately clarified that the old NHR no longer exists. Michael was counting on the famous NHR, and the first thing we did was tell him honestly: it is closed for new applicants. This eliminated false expectations and directed our work toward the current IFICI regime, not something that no longer exists.

  2. 02
    Stage 2

    We verified Michael's eligibility for the new IFICI regime. IFICI is narrow, and not everyone qualifies. We assessed Michael's profile—IT entrepreneur, technology company—and confirmed that he falls within the eligible categories: technology sector specialists. This made the benefit realistically available to him.

  3. 03
    Stage 3

    We obtained the Residence Permit via Golden Visa as the foundation. The tax regime operates on top of resident status. We structured the fund investment and obtained the Golden Visa to provide Michael with a lawful basis for Portuguese tax residency.

  4. 04
    Stage 4

    We qualified him under IFICI and tax residency. The key step: we properly documented Michael's qualification under IFICI and structured his tax residency so that the preferential 20% rate would apply to his income lawfully, without complications.

  5. 05
    Stage 5

    We structured his international income within the regime framework. Michael has complex income sources—dividends, US stock options. We structured how these fall under IFICI so that international income is taxed preferentially rather than at the resident rate of 48%.

Takeaway. Conclusion: The old NHR is closed; the new IFICI (NHR 2.0) is in effect—the same 20% rate for 10 years, but with a narrow eligibility circle. It is essential to structure the benefit through the current regime rather than rely on the repealed one.

How we handled the case

How we handled the case

The work was split into verifiable stages so that every conclusion rested on documents.

  1. 01

    Stage 1

    We immediately clarified that the old NHR no longer exists. Michael was counting on the famous NHR, and the first thing we did was tell him honestly: it is closed for new applicants. This eliminated false expectations and directed our work toward the current IFICI regime, not something that no longer exists.

  2. 02

    Stage 2

    We verified Michael's eligibility for the new IFICI regime. IFICI is narrow, and not everyone qualifies. We assessed Michael's profile—IT entrepreneur, technology company—and confirmed that he falls within the eligible categories: technology sector specialists. This made the benefit realistically available to him.

  3. 03

    Stage 3

    We obtained the Residence Permit via Golden Visa as the foundation. The tax regime operates on top of resident status. We structured the fund investment and obtained the Golden Visa to provide Michael with a lawful basis for Portuguese tax residency.

  4. 04

    Stage 4

    We qualified him under IFICI and tax residency. The key step: we properly documented Michael's qualification under IFICI and structured his tax residency so that the preferential 20% rate would apply to his income lawfully, without complications.

  5. 05

    Stage 5

    We structured his international income within the regime framework. Michael has complex income sources—dividends, US stock options. We structured how these fall under IFICI so that international income is taxed preferentially rather than at the resident rate of 48%.

  6. 06

    Stage 6

    We secured his status and preferential regime for 10 years. Michael obtained a Portuguese Residence Permit and the IFICI regime with a fixed 20% rate for 10 years. His taxes on international income were genuinely reduced—lawfully, through the current regime, not the repealed NHR.

Expert comment

Portuguese taxation is my specialty, and there is an important pitfall here. Michael, like many others, came seeking the famous NHR—but it is already closed for new applicants. The first thing I do is tell him honestly: the old NHR is gone, do not count on it. But this is not a dead end: IFICI has taken its place, and it is called NHR 2.0. The benefit is the same—a fixed 20% for 10 years—but the regime is now narrow: it applies only to scientists, technology specialists, startup founders, and exporters. Michael, with his IT company, qualifies as a technology sector specialist. We obtained his Residence Permit via Golden Visa as the foundation, qualified him under IFICI, and structured his tax residency so that his international income—dividends, US stock options—is taxed at 20% rather than 48%. I always consider how status will affect taxes and know current regimes, not yesterday's ones. The old NHR is gone, but a working replacement exists.

Dmitry Nagy, International Tax Consultant, BRIDGESDmitry NagyInternational Tax Consultant, BRIDGES

Outcome

What the client received

What was required
How we did it · Results
Reduce taxes from 48%
current IFICI regime · 20% rate for 10 years
Do not rely on the old NHR
qualification under NHR 2.0 · current regime
Status Foundation
Golden Visa via fund · tax residency
International income benefit
structuring under IFICI · income taxed preferentially
International income benefit
structuring under IFICI · income taxed preferentially

What was: An IT entrepreneur paid resident-level rates up to 48% and wanted preferential treatment, relying on the old NHR, which is already closed. What we did: clarified that the old NHR no longer exists; verified Michael's eligibility under the new IFICI regime as a technology specialist; obtained a Residence Permit via Golden Visa; qualified him under IFICI and tax residency; structured his international income within the regime. What the client received: Portuguese Residence Permit and preferential 20% rate for 10 years instead of 48%.

Practical takeaway

What matters in a similar situation

  • Conclusion: The old NHR is closed; the new IFICI (NHR 2.0) is in effect—the same 20% rate for 10 years, but with a narrow eligibility circle. It is essential to structure the benefit through the current regime rather than rely on the repealed one.
  • Michael lawfully reduced taxes on his international income—because we structured the benefit through the current IFICI regime, under which he qualifies as an IT specialist, rather than chasing the already-closed NHR.

FAQ

Questions people ask in a similar situation

01Is the NHR regime still in effect in Portugal?

The old NHR for new applicants is closed. It has been replaced by the IFICI regime (known as NHR 2.0) with the same preferential 20% rate for 10 years, but with a narrower circle of eligible persons.

02Who can apply for IFICI?

Specific categories: scientists, technology specialists, startup founders, exporters. The regime is narrow, so eligibility must be verified against the applicant's specific profile.

03What is the tax rate under the new regime?

Fixed preferential rate of 20% for a period of up to 10 years - significantly lower than resident rates, which in some countries reach 48%. This makes the regime attractive for qualified specialists.

04How are Golden Visa and the tax regime connected?

Golden Visa grants resident status and the basis for Portuguese tax residency, while IFICI is a preferential tax regime on top of it. Together they provide both status and reduced taxes.

05Can taxes on international income be reduced?

Yes, if you qualify under IFICI and establish proper tax residency, international income may be taxed at the preferential rate. It is important to structure income correctly under the applicable regime.

06You want Portuguese Residence Permit and tax benefits, but heard that NHR was closed?

We will arrange the benefit through the current regime: verify your eligibility for IFICI (NHR 2.0), arrange Residence Permit through Golden Visa, and qualify you under the regime - so international income is taxed at 20% rather than resident rates.

About the author

Dmitry Nagy

Author: Dmitry Nagy

International Tax Consultant, BRIDGES

I lead the international tax practice at BRIDGES and work at the intersection of tax residence, cross-border reporting and banking compliance. I assess how citizenship, residence, relocation or a new ownership structure may affect the client's tax obligations, banking profile and capital.

My work covers tax residence, CRS and FATCA requirements, source of funds and the questions a bank may raise. These elements should be considered together, because inconsistencies between documents, declarations and the underlying circumstances can create risks after a status has been obtained or an account has been opened.

During the consultation, you will receive an assessment of the tax and banking implications of the proposed decision. Where further work is required, I determine the financial documentation and personally oversee the tax and compliance aspects of the BRIDGES project.

Prepared on the basis of BRIDGES practice and reviewed by a subject-matter expert.

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Dmitry NagyInternational Tax Consultant, BRIDGES
Dmitry Nagy, International Tax Consultant, BRIDGES

Names and certain details have been changed to protect client confidentiality. The result described reflects one specific situation and is neither a public offer nor a guarantee of a similar outcome. Programme terms are stated as of 2026 and may change - please confirm current parameters with a BRIDGES consultant.