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The original Non-Habitual Resident (NHR) programme, which offered tax advantages to individuals who had not previously been tax residents in Portugal in the preceding 5 years, is no longer available. However, a new program for expats has been introduced, bringing tax reductions to a list of professionals who might find great career and savings opportunities in the country. Keep reading to see if your occupation is eligible under the new rules.
NHR vs IFICI: Are They the Same Thing?
The NHR (Non-Habitual Resident) program was introduced in 2009 by the Portuguese government, with the goal of boosting the economy by offering preferential tax treatment for 10 years to individuals who became tax residents in Portugal. One of the most attractive features of this regime was a flat 20% rate, instead of the regular progressive rates that can get up to 53%. After a few alterations, that took place in 2019, the programme eventually came to an end in 2023.
In 2024, Portugal introduced a new tax regime aiming at attracting new tax residents for specific qualified professionals. Even though the official name of the initiative is IFICI (Incentivo Fiscal à Investigação Científica e Inovação, or Tax Incentive for Scientific Research and Innovation), it’s commonly referred to as the NHR 2.0, as it offers similar benefits to the preview regime, such as the fixed 20% tax rate on locally generated income.
However, the original name of the programme can be deceiving since you don’t have to be an academic researcher or an innovation scientist to be eligible for the tax incentive. The list of professions that can benefit from this initiative is actually quite extensive and you might make the cut.