NHR Portugal | What Was It and What Replaced It (IFICI) | Visas.pt

The NHR (Regime Fiscal do Residente Não Habitual — Non-Habitual Resident tax regime) was one of Portugal's most significant tax incentives for incoming residents. Introduced in 2009, it offered qualifying new tax residents a flat 20% rate on Portuguese-source professional income and an exemption or reduced rate on most foreign-source income, for a period of 10 years.

The NHR was discontinued for new applicants from 1 January 2024, replaced by the IFICI programme. However:

• People who applied for NHR before 31 December 2023 and were approved retain their NHR status for the full 10-year period
• People who established Portuguese tax residency in 2023 and registered for NHR before the deadline retain their status
• New residents from 2024 onwards must apply for IFICI instead, subject to its profession-specific eligibility criteria

The key practical difference: NHR was broadly accessible to most new residents regardless of profession. IFICI is restricted to qualifying professional categories. This means some people who would have qualified for NHR (particularly retirees and those with passive income) may not qualify for IFICI.