Tax is often the deciding factor in a move to Portugal, and it is the area with the most outdated advice online. The famous NHR regime is closed to newcomers; its successor, IFICI, is much narrower. Test what you know.
The original NHR closed to new applicants at the end of 2023 (with limited transitional cases). The current regime for newcomers is IFICI, informally called NHR 2.0.
IFICI applies a flat 20% personal income tax rate to employment (Category A) and self-employment (Category B) income from eligible activities.
IFICI benefits run for up to 10 consecutive years, subject to annual verification that you still meet the eligibility conditions.
Applicants must become Portuguese tax residents without having been tax resident in Portugal in any of the previous five years.
IFICI excludes foreign pensions from its exemption, which is a major change from the old NHR. This makes IFICI far less relevant for retirees on the D7.
The IFICI registration deadline is 15 January of the year after you become a Portuguese tax resident — so someone resident in 2026 must apply by 15 January 2027.
Tax residency is generally triggered by spending more than 183 days in Portugal in a year or having a habitual residence there. A NIF or bank account alone does not make you tax resident.
IFICI is not available to people who previously benefited from the NHR regime or the Regressar returnee programme; the regimes are mutually exclusive.
Unlike the old NHR, IFICI is not registered directly with the tax authority alone. A competent entity — FCT, AICEP, IAPMEI, ANI or Startup Portugal — is involved, together with the Portal das Finanças.
IFICI includes annual verification that you still meet the eligibility conditions, so a change of job can end the benefit.
Portuguese tax residents file their IRS return (Modelo 3) online between 1 April and 30 June for the previous year's income, declaring foreign income on Annex J.
The top marginal IRS rate is 48%. A solidarity surcharge of 2.5% applies on roughly €80,000–€250,000 of income and 5% above that.
Source: Is there a tax-free allowance in Portugal in 2026? (MCS)
This quiz is general information based on Portuguese rules in force on the review date above, not legal advice. Immigration thresholds change every January with the minimum wage, and laws change often. Confirm your case with a lawyer before applying.