NHR (Non-Habitual Resident)

Last updated: 2026-05-16

NHR (Non-Habitual Resident) was Portugal's flagship tax regime between 2009 and 2023 for nomads, European retirees and high-value professionals deciding to move to Portugal. Closed to new applicants since 2024.

How it worked:

• 10 years of special tax benefits.
• 20% flat on "high value-added" employment income.
• Exemption on most foreign income (pensions, dividends, interest, capital gains) if the source country had a treaty.
• Foreign pensioners: 10% on pension (raised from original 0% after international criticism).

Who still benefits:

• Those registered as NHR before January 1, 2024 keep the regime for the remaining years.

Replacement: IFICI — more restrictive and oriented toward innovation/research.

Official sources:

• Portuguese Personal Income Tax Code (CIRS), Art. 16 (Non-Habitual Resident status before 2024).
• Law no. 82/2023 of December 29 — 2024 State Budget Act (closure of classic NHR).
• Autoridade Tributária e Aduaneira — Portal das Finanças, "Non-Habitual Resident Regime" factsheet.