NHR is closed. Here's what IFICI offers in 2026

Portugal revoked its Non-Habitual Resident (NHR) tax regime on January 1, 2024. A transitional rule still let some people join if they became tax resident by December 31, 2024 and had ties to Portugal from before the change, such as a job contract or a lease, and they had to register by March 31, 2025. People who already had NHR keep it until their 10-year period ends. Anyone moving now needs a different answer, and for many that answer is IFICI.

What replaced NHR

IFICI (Incentivo Fiscal à Investigação Científica e Inovação, often called "NHR 2.0") was created by the 2024 State Budget as article 58.º-A of the Tax Benefits Statute. It applies to people who became tax resident from January 1, 2024. Its rules were set in Portaria n.º 352/2024/1 in December 2024, and registration opened in February 2025.

Net Portuguese employment and self-employment income from an eligible activity is taxed at a flat 20 percent for 10 consecutive years. Most foreign-source income is exempt, including foreign wages, investment income, rents and capital gains. Foreign pensions are not exempt, and income from listed tax havens is taxed at 35 percent.

The real difference: who it is for

This is the part that trips people up. NHR was open to most new residents. IFICI is tied to specific activities: higher-education teaching and scientific research, highly qualified jobs in companies that receive investment tax benefits or export at least half of their turnover, other qualified roles recognized by AICEP or IAPMEI, research and development staff, and certified startups. You must not have been tax resident in Portugal in the previous five years, and anyone who already had NHR cannot use it. Someone who would have qualified for NHR in 2023 may not fit IFICI today.

Registration is due by January 15 of the year after you become resident. The regime is working in practice: by May 2026, 946 people had registered (147 for 2024 and 799 for 2025), most of them foreign nationals, according to Portugal's Court of Auditors (Tribunal de Contas).

What this means before you relocate

• Confirm eligibility against IFICI's actual criteria before assuming any special tax status applies to your situation.
• If your income doesn't fit an eligible category, plan around Portugal's standard tax rules rather than a special regime that may not apply.
• Timing matters: the IFICI registration deadline falls early in the year after your move, so check eligibility before you arrive.

This is no reason to avoid Portugal as a tax resident. Get an answer on your own eligibility early, from someone qualified to give one, before assuming the old NHR rules still apply.

Frequently asked questions

Is Portugal's NHR tax regime still available in 2026?

No. NHR was revoked on January 1, 2024. A transitional rule covered some people who became tax resident by the end of 2024, with registration due by March 31, 2025. People who already had NHR keep it until their 10-year period ends.

What is IFICI and what does it offer?

IFICI is the regime that replaced NHR, for people who became tax resident from January 1, 2024. It taxes net Portuguese employment and self-employment income from eligible activities at a flat 20 percent for 10 years and exempts most foreign-source income, except pensions.

Who actually qualifies for IFICI?

People who were not tax resident in Portugal in the previous five years and work in an eligible activity, such as higher-education teaching, scientific research, highly qualified jobs in companies with investment tax benefits or high exports, research and development roles, or certified startups. Former NHR holders are excluded.

Is IFICI actually being approved in practice?

Yes. By May 2026, 946 people had registered for IFICI (147 for 2024 and 799 for 2025), according to Portugal's Court of Auditors.

This article is general information, not tax or legal advice, and does not replace guidance from a licensed advisor on your specific case.