Portugal NHR and IFICI Tax in 2026: What Changed and Who Qualifies
By Claire Lawrence, who moved to Portugal and now helps others do the same. Last updated June 2026. Figures are indicative and sourced; always confirm current rules before you rely on them.
The old NHR tax regime is closed to new applicants. Its replacement, IFICI, gives a flat 20 percent rate on eligible Portuguese income for up to ten years, but it is narrow: it is aimed at specific high-value roles and generally does not cover retirees, passive income or most remote workers. If the tax break is your reason to move, get advice before you rely on it.
What happened to NHR?
NHR, the non-habitual resident regime, is closed to new applicants. The transition window ended in 2025. If you already hold NHR, it runs its course for your ten years. If you are arriving now, it is not available, so ignore older articles that still sell it.
What is IFICI (sometimes called NHR 2.0)?
IFICI is the successor regime. It offers a flat 20 percent tax rate on eligible Portuguese employment or self-employment income for up to ten years, with favourable treatment of some foreign income. The catch is that it is much narrower than NHR. It targets specific high-value activities such as research, innovation, teaching and certain qualified professions.
Who qualifies, and who does not
| Your situation | Likely to qualify for IFICI? | What to expect |
|---|---|---|
| A qualified professional in an eligible high-value role | Possibly | 20 percent on eligible Portuguese income, if your role and employer qualify |
| A retiree living on a pension | Generally no | Normal Portuguese income tax on your pension. Plan for this |
| A passive investor (dividends, rentals) | Generally no | Taxed under the normal rules, subject to treaties |
| A remote worker | Usually no | Only if your specific role falls within the eligible activities |
The basics everyone should know
- If you live in Portugal more than 183 days a year, you are generally a tax resident here
- Tax residents are usually taxed on worldwide income, subject to treaties
- Portugal has double-tax treaties with the UK, the US and many others, so you should not pay twice on the same income
- Normal Portuguese income tax (IRS) is progressive and can be high, which is why a regime like IFICI matters if you qualify
- Pensions, rental income, dividends and employment are each treated differently
What to do
- Get your NIF early, you need it for everything
- Work out your likely residency status for your first year
- Find a cross-border accountant before you move, not after
- Check whether IFICI applies to your profession
- Tell your home tax office you are leaving, and ask about split-year treatment
Frequently asked questions
Is NHR still available in 2026?
No. NHR is closed to new applicants. If you already hold it, you keep it for the rest of your ten years.
What is the IFICI tax rate?
A flat 20 percent on eligible Portuguese-source income, for up to ten years, if you qualify.
Do retirees qualify for IFICI?
Generally no. IFICI targets specific high-value activities, so most pensioners pay normal Portuguese income tax on their pensions. Plan for that rather than counting on a tax break.
Will I be taxed twice?
Portugal has double-tax treaties with the UK, the US and many others, so you should not pay tax twice on the same income, but you must file correctly in both places.
When am I a Portuguese tax resident?
Generally if you spend more than 183 days a year in Portugal, or your habitual home is there.
Tax is where good advice pays for itself many times over. The Move and Fit plans go deeper, and include the vetted contacts to help you find a cross-border accountant.
See what is includedSources
- Global Citizen Solutions, the new NHR and IFICI regime (2026)
- Immigrant Invest, Portugal IFICI regime
- Portuguese tax authority (Financas): portaldasfinancas.gov.pt
- This is not tax advice. Confirm your own position with a qualified cross-border accountant