That chapter has now closed. The NHR scheme is no longer available to new applicants, and its replacement marks a deliberate shift in Portugal’s approach to attracting international talent.
Understanding what has changed — and what opportunities remain — is essential for anyone planning a move to Portugal in 2026 or beyond.
The end of NHR and the rise of IFICI
The Portuguese government officially discontinued the NHR regime, with the final application window closing on March 31, 2025. In its place, a new programme has been introduced: the Tax Incentive for Scientific Research and Innovation, known as IFICI, and commonly referred to as NHR 2.0.
On paper, IFICI shares some of the original NHR’s DNA. Qualifying individuals benefit from a flat 20% tax rate on eligible Portuguese professional income and exemptions on most categories of foreign-sourced income, including dividends, interest, capital gains, and rental income earned outside Portugal.
However, the eligibility criteria are significantly narrower. IFICI is designed specifically for highly qualified professionals working in approved fields — primarily science, technology, innovation, and education. Unlike the original NHR, which was accessible to a broad range of professions and pension recipients, IFICI requires active engagement in a qualifying role each year to maintain the benefit. Pension income, notably, is no longer covered.
What this means for different types of relocators
For tech professionals, researchers, and entrepreneurs in innovation-driven sectors, IFICI represents a genuinely attractive proposition. The 20% flat rate and foreign income exemptions can result in significant tax efficiency, particularly for those earning across multiple jurisdictions.
For retirees and those with primarily passive income streams, the picture is more nuanced. Without NHR’s pension exemptions, Portugal’s standard progressive tax rates will apply — though these remain competitive by western European standards, and the country’s network of more than 70 double taxation agreements can help mitigate the impact of cross-border taxation.
For investors entering through Portugal’s Golden Visa programme, the tax conversation sits alongside a separate set of considerations around fund structures, residency timelines, and the potential extended naturalisation period.
The bigger picture
What’s clear is that Portugal has not stopped being attractive to international residents. What has changed is the specificity of the incentive. The country is no longer casting a wide net — it is targeting the profiles it wants most, while continuing to offer a fundamentally appealing quality of life, safety record, and cost of living that few European competitors can match.
The key for anyone considering a move is to understand exactly where they sit within this new framework, and to plan accordingly. The difference between a well-structured relocation and a costly misstep often comes down to timing and expert guidance.
Learn more in a free live session
Jason Swan, an expert in the field advising on over 600 successful applications to since 2021, will be covering the latest programme updates, tax considerations, and taking live questions from attendees.
Whether you’re mid-planning or just starting to explore the idea, it’s a rare opportunity to get direct, unfiltered guidance from someone who has navigated this process hundreds of times.
Register for the free webinar here – Register Now
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