Is NHR still available in Portugal?
In 2025, the Non-Habitual Resident (NHR) regime was renewed and adapted to new economic and tax requirements. Its updated version, NHR 2.0, continues to offer attractive tax benefits, such as a reduced 20% income tax rate for qualified professionals in strategic areas for the national economy. This article explains the requirements, advantages, and steps needed to benefit from this regime during the 10 year eligibility period.
What is NHR 2.0?
The end of the Non-Habitual Resident status as we previously knew it gave way, in 2025, to its 2.0 version, which still applies to individuals who become tax residents in Portugal and have not been residents in the country during the previous five years.
It is a tax status that grants a benefit in terms of personal income tax (IRS) and consists of a special 20% rate on income earned from certain activities for a period of 10 consecutive years starting from the year of registration as a resident in Portugal.
What are the requirements to obtain NHR 2.0 status?
To benefit from NHR 2.0, individuals must earn income from one of the following activities:
- Teaching in higher education and scientific research, including scientific employment in entities, structures, and networks dedicated to the production, dissemination, and transmission of knowledge, integrated into the national science and technology system, as well as positions and board members in entities recognized as technology and innovation centers;
- Qualified positions and board members under contractual benefits for productive investment;
- Highly qualified professions developed in:
- Companies with relevant applications, at the start of operations or in the previous five financial years, which benefit or have benefited from the investment support tax regime; or
- Industrial and service companies with a specific scope of activity that export at least 50% of their turnover in the financial year in which they commence operations or in either of the two previous financial years.;
- Other qualified positions and board members in entities recognized by AICE, EPE or IAPMEI, IP as relevant for the national economy, namely attracting productive investment and reducing regional disparities;
- Research and development staff whose costs are eligible for tax incentives for business R&D;
- Positions and board members in certified startups; or
- Positions or activities carried out by tax residents in the Autonomous Regions of the Azores and Madeira.
What is the procedure to obtain NHR 2.0 status?
To obtain NHR 2.0, the individual must register as a beneficiary with the relevant entities, depending on the activities performed (Article 58-A/1):
- Foundation for Science and Technology, I.P. (FCT);
- Portuguese Trade & Investment Agency (AICEP);
- Tax and Customs Authority (AT);
- Agency for Competitiveness and Innovation, I.P. (IAPMEI);
- National Innovation Agency, S.A. of Startup Portugal and the Autonomous Regions of the Azores and Madeira.
Want to apply but don’t know how?
Obtaining NHR 2.0 can lead to significant savings. However, Portuguese tax law requires attention to detail and strict compliance with legal obligations. For personalized support, it is advisable to consult a law firm in Portugal. If you plan to live or invest in Portugal and need tax advice or related services, contact us. We assist clients at every stage and handle all operations related to relocation or investment, tailoring our services to your specific needs.