Tax residence regimes in Portugal

Tax residence regimes in Portugal

The Non-Habitual Resident (NHR) regime was closed to new residents from 1 January 2024. Individuals already registered may continue to benefit until the end of their original ten-year period. Transitional provisions were also introduced for certain individuals who became Portuguese tax residents no later than 31 December 2024 and who can demonstrate a qualifying prior commitment made within the statutory deadlines.

The new IFICI regime

Since 1 January 2024, Portugal has applied the Tax Incentive for Scientific Research and Innovation, commonly known as IFICI.

The regime is not granted simply because a person is a foreign national or purchases property in Portugal. It is intended for new Portuguese tax residents, whether Portuguese or foreign, who meet several conditions simultaneously:

  • become tax resident in Portugal;
  • not have been tax resident in Portugal during any of the previous five years;
  • carry out an expressly eligible activity, profession or role;
  • not benefit and not have benefited from the NHR regime;
  • not have opted for the Programa Regressar tax regime;
  • not have benefited from IFICI previously.

Eligible activities and professions

Eligibility may notably cover:

  • higher education teaching and scientific research;
  • certain qualified positions connected with investment projects;
  • research and development activities whose personnel costs qualify under SIFIDE;
  • certain employment or management positions in an officially certified startup;
  • certain positions in companies recognised by AICEP or IAPMEI as relevant to the Portuguese economy;
  • certain highly qualified professions, including company executives and directors, specialists in science, mathematics, engineering and technology, industrial designers, doctors, university lecturers and information and communications technology specialists.

Having a profession included in the list is not always sufficient. Depending on the relevant category, the employer may also have to meet specific requirements concerning RFAI-eligible investment, designated economic activity codes, a minimum export level or recognition by a competent public body. Academic qualification and professional experience requirements may also apply.

Tax benefits

Subject to approval, net employment and self-employment income in categories A and B arising from the eligible activity carried out in Portugal may be taxed at the special rate of 20%, with the option to aggregate that income under the general Portuguese income-tax rates.

The regime may apply for ten consecutive years beginning with the year in which the beneficiary registers as a Portuguese tax resident.

Foreign-source income in categories A, B, E, F and G generally benefits from the exemption method. It must nevertheless be declared and is taken into account when determining the rate applicable to other taxable income. Foreign pension income is not covered by this specific exemption. Special rules, including a 35% tax rate, may apply to income paid by entities established in a jurisdiction appearing on Portugal’s list of clearly more favourable tax regimes.

Applying for the regime

IFICI is not automatic. The application must be submitted through the Portal das Finanças, in principle by 15 January of the year following the year in which Portuguese tax residence is established.

A late application does not extend the overall duration of the regime. It takes effect only from the year in which the application is filed and for the remainder of the original ten-year period. The relevant competent body verifies the activity, while the Portuguese Tax and Customs Authority verifies the other requirements, including tax residence and the prohibition on combining IFICI with excluded regimes.

Property purchase: benefits separate from IFICI

Buying property does not automatically make a person eligible for IFICI. Independently of that regime, a buyer may, depending on personal circumstances and intended use, qualify for benefits linked to IMT Jovem, a permanent primary home, rehabilitation, IMI, long-term or moderate-rent leases, reinvestment of certain capital gains and family succession. In Portugal, a spouse or de facto partner, descendants and ascendants are notably exempt from the 10% Stamp Duty charge on assets received by inheritance, although reporting obligations remain.

The rules applying to non-resident buyers also changed in 2026. Read the full guide to the benefits, taxes and precautions involved in buying property in Portugal.

Information reviewed on 26 August 2026.

Tax treatment depends on each person’s circumstances, the nature of the income, the employer and the activity actually performed. Coloristreet provides real-estate services only and does not provide tax or legal advice. Before making any decision, independent advice should be obtained from the Portuguese Tax and Customs Authority and a qualified tax adviser.