Relocation tax guideMoving to Portugal: Taxes for Expats 2026
Portugal taxes residents on worldwide income at progressive rates up to 48%, plus a solidarity surcharge. Its long-running Non-Habitual Resident (NHR) regime closed to new arrivals in 2024 and was replaced by a narrower incentive, IFICI, for research, innovation, and qualifying professionals. You generally become tax-resident after 183 days or by keeping a habitual home there.
Portugal has been one of Europe's most popular destinations for relocating professionals and retirees, helped for over a decade by the Non-Habitual Resident regime. That regime is now closing, and a different, tighter incentive has taken its place. This guide sets out how Portugal taxes new residents today, what changed, and how residency is triggered, with the headline rates drawn from the country's full breakdown.
Portugal: key tax rates
| Tax | Rate | Source |
|---|---|---|
| Corporate income tax | 19%Headline corporate income tax rate (a reduced rate applies to SMEs on the first tranche of taxable income) | PwC Worldwide Tax Summariesas of 2026-01-26 |
| Top personal income tax | 48%Top rate plus a solidarity surtax (2.5% over EUR 80,000; 5% over EUR 250,000) | PwC Worldwide Tax Summariesas of 2026-01-26 |
| VAT / GST (standard) | 23%Standard VAT rate (mainland) | PwC Worldwide Tax Summariesas of 2026-01-26 |
| Capital gains | 28%Flat rate on securities/investment gains; real-estate gains: 50% included in progressive income (residents may opt for the 28% flat rate) | PwC Worldwide Tax Summariesas of 2026-01-26 |
| Inheritance / wealth tax | 10% (stamp duty)Free acquisitions (inheritance/gifts) taxed under stamp tax at 10%; exempt for spouse, descendants, and ascendants | PwC Worldwide Tax Summariesas of 2026-01-26 |
The Non-Habitual Resident (NHR) / IFICI regime
NHR closed to new entrants from 2024 (limited transitional cases aside); replaced by IFICI, the tax incentive for scientific research and innovation, under the 2024 State Budget.
NHR gave qualifying new residents a 20% flat rate on Portuguese-source income from listed high-value-added activities and broad relief on many categories of foreign income for ten years. Its successor, IFICI (often called 'NHR 2.0'), keeps a 20% flat rate for eligible research, innovation, and qualified roles but is narrower and, unlike NHR, does not cover pension income.
- 20% flat rate on Portuguese employment or self-employment income from eligible activities, instead of the progressive scale up to 48%.
- A ten-year window from the year residency is established.
- IFICI is targeted at scientific research, innovation, and certain qualified professions rather than being open to all new residents.
- Foreign-source income relief differs between NHR and IFICI; pensions were taxed at 10% under NHR and are not within IFICI's scope.
Source: PwC Worldwide Tax Summaries - Portugal (as of 2026-06-23).
| Item | Under NHR / IFICI | Standard resident rules |
|---|---|---|
| Portuguese income from an eligible activity | 20% flat rate | Progressive up to 48% (plus solidarity surcharge) |
| Foreign pension income | Taxed at 10% under NHR; not covered by IFICI | Progressive up to 48% |
| Time limit | 10 years from establishing residency | No time limit |
Source: PwC Worldwide Tax Summaries - Portugal (as of 2026-06-23).
When you become a tax resident
You are generally a Portuguese tax resident if you spend more than 183 days (continuous or not) in Portugal in any 12-month period, or if you have a home there on 31 December that you intend to keep as a habitual residence. Residents are taxed on worldwide income; non-residents only on Portuguese-source income.
Source: PwC Worldwide Tax Summaries - Portugal (Residence) (as of 2026-06-23).
What changed: from NHR to IFICI
The Non-Habitual Resident regime was withdrawn for new applicants from 2024, with transitional rules for people who had already begun the process. In its place, the 2024 State Budget created IFICI, an incentive aimed at scientific research, innovation, and a defined set of qualified professions rather than at new residents generally.
If you held NHR status before it closed, your ten-year window continues under the terms that applied when you registered. New arrivals are assessed against the narrower IFICI criteria or fall under the standard resident rules.
How Portugal taxes foreign income
Once you are resident, Portugal taxes your worldwide income, with double-tax treaties and the foreign-tax credit reducing double taxation. The relief available on foreign employment, investment, and pension income depends on whether an incentive applies and on the specific category of income - which is why the NHR-versus-IFICI distinction matters so much for retirees and remote workers.
Before you move: what to weigh
- The month you arrive affects which tax year you first become resident - timing a move around the 183-day count can change your first Portuguese filing.
- IFICI does not replace NHR's pension treatment; retirees relying on the old 10% pension rate should confirm their status carefully.
- Portuguese social security may apply to employment and self-employment income separately from income tax.
- Treaty relief depends on your home country's agreement with Portugal - the US, for example, taxes its citizens regardless of residence.
Get this right for your situation
Cross-border tax turns on your specific facts. Find a tax professional who works with people moving to Portugal.
Is the NHR scheme still available in Portugal?
No - the Non-Habitual Resident regime closed to new applicants in 2024, apart from limited transitional cases. People who already held NHR keep it for the remainder of their ten-year window. New arrivals are assessed under the successor incentive, IFICI, or the standard resident rules.
What is IFICI in Portugal?
IFICI is the tax incentive for scientific research and innovation introduced by the 2024 State Budget as the successor to NHR. It offers a 20% flat rate on Portuguese income from eligible research, innovation, and qualified activities, but is narrower than NHR and does not cover pension income.
When do you become a tax resident in Portugal?
Generally after spending more than 183 days in Portugal in a 12-month period, or by keeping a home there on 31 December intended as your habitual residence. Residents are taxed on worldwide income; confirm your position, as treaty rules can change the outcome.
Informational only, not tax advice. Cross-border tax depends on your personal circumstances and changes often; figures are dated to their sources. Confirm your position with a qualified professional before moving or filing.
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Portugal as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.