Portugal NHR Tax Regime Complete Guide 2025 — 10-Year Eligibility & Benefits
Correction (2026-07-31): the NHR regime is closed to new applicants. It ended for new entrants on 31 December 2023, with a narrow transitional window for people who were already part-way through relocating. This page previously described the application process as though it were open, and gave a "Form IRS after first 6 months" step that does not match the regime's actual registration route. If you are planning a move to Portugal now, NHR is not available to you. The successor regime is IFICI (Incentivo Fiscal à Investigação Científica e Inovação), which is much narrower — see our IFICI guide. What follows describes NHR as it operated, for readers already inside the regime.
Portugal's NHR (Non-Habitual Resident) regime offered significant tax advantages for expatriates, including 0% or 10% tax rates on foreign income for 10 years. Existing beneficiaries keep the regime for the remainder of their 10-year period.
Eligibility Requirements (as they applied)
- You must be a new resident in Portugal (not tax-resident in prior 5 years)
- Establish Portuguese tax residency
- Apply to Portuguese tax authority (Autoridade Tributária e Aduaneira)
- Benefits apply for 10 consecutive tax years
Tax Rates by Income Type
| Income Type | NHR Rate | Standard Rate |
|---|---|---|
| Foreign pension | 0% | ~15% |
| Foreign employment | 10% | ~20% |
| Dividends | 10% | ~28% |
| Capital gains | Variable | ~28% |
| Portuguese-source income | Standard rates (IRS) | N/A |
Application Process (closed — for reference only)
Registration was made with the Autoridade Tributária e Aduaneira through the Portal das Finanças, after registering as a tax resident, by a deadline in the year following the year of becoming resident — not "after the first 6 months", and not on an IRS return form. No new registrations are being accepted. If you believe you fall inside the transitional rules, put that question to the AT or a Portuguese accountant rather than relying on a general guide; the transitional conditions are specific and evidence-based.
Duration
- 10 consecutive tax years from first NHR approval
- After 10 years, standard IRS rates apply
- Cannot be re-applied immediately; must wait 5 years if you leave
Mistakes to Avoid
✘ Applying without being Portuguese tax-resident (rejected) ✘ Assuming Portuguese employment qualifies for 0% (doesn't) ✘ Failing to provide documentation of foreign source (audit risk) ✘ Expecting capital gains to remain at 10% (may vary)
Conclusion
NHR is a powerful tool for expatriates earning foreign income in Portugal. Proper planning and documentation are essential for compliance.