Portugal

Why Portugal?

Portugal remains the most popular destination for Spanish nomads for three reasons: cultural and geographic proximity, 20% flat IRPF under IFICI, and accessible tax residency in 4-6 weeks. The critical change is that the classic NHR regime closed to new applicants in 2024 — now you have to enter via IFICI, which has stricter requirements.

IFICI 2024 (NHR successor)

The Incentive for Scientific Research and Innovation (Decree-Law 41/2024) replaces the classic NHR:

• 20% flat rate on employment and self-employment income for 10 years.
• Exemption on foreign income (dividends, interest, capital gains) if the source country has a treaty or isn't a tax haven.
• Only applies to specific sectors: scientific research, university teaching, certified StartUP Portugal startups, "high value-added" professions listed by the tax authority.

Doesn't apply to generic freelancers. If you're a dev/designer/consultant without a contract with a recognized entity in one of these categories, you fall back to the general regime (brackets up to 48%).

How to get residency (step by step)

1. NIF (Tax Identification Number) — get one before moving. Can be obtained via power of attorney without being physically present.
2. Portuguese bank account — Millennium BCP, ActivoBank or Caixa Geral are the most nomad-friendly.
3. Rental or purchase contract — needed to register your tax domicile with AT.
4. Resident registration at the local freguesia + Serviço de Estrangeiros e Fronteiras.
5. IFICI application to AT with eligible-sector documentation.
6. Portuguese tax residency certificate — key to presenting before Hacienda and breaking the Spanish residency presumption.

Realistic total time: 4-8 weeks if you arrive with NIF, housing and IFICI eligibility documentation already arranged.

Spain-Portugal treaty (1995)

The bilateral double-taxation treaty prevents being taxed twice on the same income:

• Employment income is taxed where you reside (not where the client is).
• Real estate is taxed where physically located.
• Tie-breaker rules exist for doubtful cases.

Implications from Spain

Low risk if you make the real cut. Key points:

• Modelo 720 required as long as you keep Spanish assets >€50K.
• Modelo 030 to notify Hacienda of your tax address change.
• Center of economic interests: if you leave family, company or main residence in Spain, Hacienda can deem you a tax resident even with Portuguese certificate. You need to move everything, not just paper.