Portuguese tax guide for new tax residents

In addition to the high-quality lifestyle, the favourable climate, the safety of the country and the existing visa / residence permit solutions, Portugal has also been offering attractive tax incentives to individuals. The tax appeal has lied essentially in the favourable tax regime applicable to new Portuguese tax residents, called non-habitual tax residents tax regime (“NHR”), which terminated in 2023 (with a transitory regime for 2024).

Despite of the end of the NHR in 2023, a new special tax regime – so-called, Tax Incentive for Scientific Research and Innovation (“IFICI”), also know as NHR 2.0 – has been introduced. This new regime establishes an attractive tax framework — i.e., specific tax benefits — for new tax residents in Portugal who engage in certain qualified activities in Portugal, with the aim of fostering the growth of Portuguese companies and attracting talent to the national economy.

Moreover, the favourable Unit Linked tax regime, the absence of wealth taxes (other than on real estate assets), as well as non-taxation inheritances within direct family members, have further bolster Portugal’s appeal.

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