Already registered under NHR
Keep using the remaining years of the original 10-year period. Becoming eligible for IFICI later does not create a switch between regimes.
REGIME · NHR VS IFICI
NHR vs IFICI — legacy vs successor
Classic NHR was repealed from 2024, but existing beneficiaries and qualifying 2024 transition cases remain. IFICI is the current route for eligible new residents whose activity and entity match the law.
Facts checked against official sources as of 2026-08-31, current for the 2026 tax year.
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Timing decides the regime; your actual job decides the benefit
NHR and IFICI are not two plans open to the same applicant. NHR is a repealed legacy status with a defined 2024 transition; IFICI is the current incentive under article 58-A, with eligibility tied to the person, activity, and relevant entity.
New resident from 2024 onward
A 2024 resident should first check the documented NHR transition. For IFICI, apply the five-year non-residence test and the exact activity and entity conditions in article 58-A and Portaria 352/2024/1. A technology title alone is not enough.
The 20% rate has a boundary
IFICI's special 20% rate applies to eligible Portuguese-source Category A or B income. Other Portuguese-source income follows the ordinary IRS rules.
| NHR (legacy) | IFICI (successor) | |
|---|---|---|
| Status | Repealed from 2024. Existing beneficiaries continue; specified 2024 transition cases can still be recognised. | Current regime since 2024, subject to registration and annual activity conditions. |
| Eligibility | Already registered on 1 January 2024, or became resident in 2024 with one of the prescribed pre-2024 links to Portugal. Late transition applications, if accepted, only receive the years remaining to 2033. | New PT tax resident after 5 years of non-residence, with income from an exact qualifying activity and entity, and no past NHR, Regressar election, or IFICI. |
| Rate on qualifying employment | 20% on qualifying Portuguese-source Category A or B income. The AT's current legacy guide states 10% for covered foreign pensions, subject to the preserved rules and older transitional options. | 20% on eligible Portuguese-source Category A or B income; other Portuguese income follows ordinary IRS rules. |
| Duration | 10 years from the year of registration. | 10 consecutive years from the relevant residence year; a late registration only gets the remaining years in that original window. |
| Foreign passive income | Category-specific treatment under the preserved NHR version of CIRS Article 81 and the applicable tax treaty; this is not a blanket exemption. | Foreign Categories A, B, E, F and G generally use exemption with progression; Category H is excluded, and income paid by entities in listed low-tax jurisdictions is generally taxed at 35%. |
| Activity coverage | Broad — the old high-value list covered engineers, doctors, IT, architects, artists, freelancers. | Entity-specific — higher education and research, defined qualified roles and professions, eligible investment/export businesses, R&D, certified startups, and regional routes. |
| Best for | Existing beneficiaries and people who can document the statutory 2024 transition. | New residents who can prove an exact article 58-A activity-and-entity route every year. |
Which one applies to you?
Question 1 of 2
Do you already hold NHR or have documented eligibility under the 2024 transition?
Frequently asked questions
I registered as NHR in 2024 — am I still grandfathered?
The transition can cover people who became resident by 31 December 2024 and held one of the prescribed pre-2024 links to Portugal. The ordinary deadline for 2024 effect was 31 March 2025; a later accepted application starts only in the application year and ends with the remaining original window in 2033. Verify your evidence with AT.
Can I switch from NHR to IFICI mid-cycle?
No. NHR beneficiaries stay on NHR through their 10-year window. IFICI is only available to new residents from 2024 who never held NHR.
Is 20% always better than progressive IRS?
No. The comparison depends on which income is eligible, your deductions, household position and the progressive calculation that would otherwise apply. Compare a full annual estimate; do not treat one gross-income cutoff as universal.
Which one covers my foreign rental / dividends?
The rules differ. Legacy NHR treatment depends on the income category, the preserved version of CIRS Article 81 and the applicable treaty. Under IFICI, foreign Categories A, B, E, F and G generally use exemption with progression; pensions are excluded and income paid by entities in listed low-tax jurisdictions is generally taxed at 35%.
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