Updated
GL-N-01
Glossary · Citizenship and residency programs
NHR - Portugal's preferential tax regime, closed to new applicants
Non-Habitual Resident - Portugal's 10-year preferential tax regime. Closed to new applicants since 2024 and replaced by IFICI.
01 / In 30 seconds
The short answer
- What it is
- Non-Habitual Resident — Portugal’s preferential tax regime
- Who it is for
- New tax residents of the country
- What it gives
- Reduced rates for 10 years, but the regime has been closed to new applicants since 2024
- Important
- New residents can use IFICI (NHR 2.0) - 20% for certain professions
- Can you prepare
- Yes: plan residence and taxes in advance
02 / In plain words
What NHR means
NHR (Non-Habitual Resident) is Portugal’s preferential tax regime for those who become tax residents of the country for the first time. It was created to attract professionals, retirees and wealthy people to Portugal by offering reduced tax rates for a set period — as a rule, up to 10 years.
The essence of the regime is favourable taxation of certain types of income: part of foreign income, income from qualifying activities and a number of other categories under preferential rules instead of the usual progressive rates. For many people moving to Portugal this made the country especially attractive financially, complementing visas such as D8 and golden visas.
An important point: Law 82/2023 closed NHR to new applicants from 1 January 2024, and the transitional window ended on 31 March 2025. Those who already have the status keep it until their 10 years end. New residents can use IFICI (NHR 2.0): 20% on income from qualifying work in Portugal for 10 years, for a narrow list of professions and with no relief for pensions. We calculate the tax consequences for the specific situation rather than promising reliefs that no longer exist.
A case from practice
A professional moves to Portugal on a D8 visa and expects preferential taxation. We check the regime’s current conditions for new residents and calculate their actual taxes for their specific income — instead of promises based on outdated rules. That way they know their net income after the move in advance.
Where the NHR regime matters
- Moving tax residence to Portugal
- Tax planning when relocating
- A complement to the D8 visa or golden visa
- Optimising foreign income
- Planning for retirees and professionals
- Calculating net income after the move
03 / What it covers
What matters about NHR
The essence
- Reduced rates
- For up to 10 years
- For new residents
Who it is for
- Professionals
- Retirees
- Wealthy individuals
Important
- Conditions have changed
- The regime has been reformed
- A current check is needed
Link
- With the D8 visa
- With the golden visa
- With a residence plan
04 / How it works
How to work with NHR
Checking the current conditions
Which regimes are available in your case.
Calculating the tax consequences
Tax under IFICI and under standard rates.
Planning residence
When to become a tax resident.
Registering the status
Registration with the Portuguese tax authority.
Preferential taxation
Tax is calculated before the move.
05 / Key facts
What you need to know
01What it is
A 10-year preferential regime
Reduced rates for people who became Portuguese tax residents for the first time.
02Status
Closed since 2024
Law 82/2023 closed NHR to new applicants from 1 January 2024. The transitional window ended on 31 March 2025.
03Who kept it
Existing holders
Those who already have the status keep it until their 10 years end.
04What replaced it
IFICI, or NHR 2.0
20% on income from qualifying work in Portugal for 10 years. A narrow list of professions; pensions get no relief.
Common mistakes
Counting on NHR when moving now
Check whether you qualify for IFICI.
Relying on old articles about the regime
Check the conditions against the current law.
Expecting relief on a pension
Calculate the pension tax under the standard rules.
Moving without a tax calculation
Calculate the tax before changing residence.
06 / Expert advice
How to prepare in advance
The NHR regime is planned under the current rules: the present conditions (which have changed) are checked, the tax consequences are calculated for specific types of income, and the moment of acquiring tax residence is thought through in advance. The regime is linked with the D8 visa or golden visa. Then the move gives real savings rather than disappointment from outdated expectations.
What we do for you. We plan taxes when you move to Portugal under the current rules of the NHR regime: we check the present conditions, calculate the consequences for your income and link them with the D8 visa or golden visa. That way you get a real picture and real savings, not promises based on outdated rates.
Dmitry NagyTax consultant, international taxation and compliance (ex-Big4)
07 / Questions
Frequently asked questions
Non-Habitual Resident — Portugal’s preferential tax regime for those who become tax residents of the country for the first time, with reduced rates for up to 10 years.
Professionals, retirees and wealthy people moving to Portugal — as a complement to the D8 visa or golden visa.
As a rule, up to 10 years. The exact period and scope of the reliefs depend on the regime’s current conditions, which have changed in recent years.
The regime has been reformed, and the rules for new applicants differ from the old ones. Outdated information cannot be relied on — the current conditions need to be checked.
Certain categories — part of foreign income and income from qualifying activities under preferential rules. We calculate for the specific situation.
No. You need to acquire tax residence and meet the regime’s conditions. We plan this in advance so that the relief actually applies.
INITIAL ASSESSMENT
Tell us what outcome your family needs
We will design a solution for your case, choose the country and the right status, and take the whole process through to the result.
