Portugal's NHR/IFICI regime in 2026: the 20% flat tax for newcomers

From NHR to IFICI

Portugal's long-running Non-Habitual Resident (NHR) regime was replaced by a narrower incentive for scientific research and innovation, often called NHR 2.0 or IFICI. It is targeted rather than open to everyone.

The 20% flat rate

Qualifying income is taxed at a flat 20%, instead of the standard progressive IRS scale that runs from 13% up to 48%. Certain foreign-source income may also be exempt under specific conditions.

Who qualifies

• •Specific professions and activities listed in the rules — research, innovation, tech, start-ups and similar.
• •You must not have been Portuguese tax resident in the previous five years.
• •You register as a Portuguese tax resident.

How long it lasts

The regime runs for up to ten consecutive years from registration, which makes it attractive for long-horizon movers.

The catch

Because it is narrower than the old NHR, many freelancers and remote workers no longer qualify. If you do not fit the listed activities, you pay the standard progressive rates plus 11% social security.