At PGA, we specialize in guiding investors through Portugal’s evolving residency and tax incentive programs. With the introduction of the updated Non-Habitual Resident (NHR) regime, known as NHR 2.0 or the Fiscal Incentive for Scientific Research and Innovation (IFICI), Portugal continues its commitment to attracting global talent and investment.
Introduced in 2009, the original NHR program offered favorable tax conditions to attract foreign professionals and retirees. Beneficiaries enjoyed a 10-year period of tax exemptions on foreign income and a flat 20% tax rate on certain Portuguese-sourced income. However, to better align with Portugal’s strategic economic goals, the program was restructured.
Effective from January 1, 2024, NHR 2.0 (IFICI) replaced the original regime, focusing on sectors like scientific research, innovation, and technological development. This shift aims to bolster Portugal’s position as a hub for innovation and high-value industries. Portugal.com
To qualify for the NHR 2.0 program, applicants must:
Become a Portuguese tax resident after January 1, 2024.
Not have been a tax resident in Portugal in the preceding five years.
Our commitment extends beyond approval. We monitor your investment’s performance, provide updates on regulatory changes, and assist with renewals or citizenship applications after five years. Our team ensures your residency status remains secure while your investment continues to deliver value, offering peace of mind in a dynamic global landscape.
Engage in eligible professional activities, such as:
Provide necessary documentation, including:
Beneficiaries of the NHR 2.0 program can enjoy:
A flat 20% personal income tax rate on Portuguese-sourced employment and self-employment income derived from eligible activities.
Exemptions on most foreign-sourced income, including:
These exemptions apply provided the income is taxable in the source country under a Double Taxation Agreement or the OECD Tax Model and does not originate from blacklisted jurisdictions.
Note: Foreign pension income is excluded from the tax benefits under NHR 2.0.
The tax advantages under NHR 2.0 are granted for a non-renewable period of 10 consecutive years, starting from the year the applicant becomes a Portuguese tax resident.
For individuals who became tax residents in 2024, applications must be submitted by March 15, 2025.
For those establishing tax residency in subsequent years, the deadline is January 15 of the following year.
We assess your eligibility and align your goals with the program's requirements.
Our team assists in gathering and verifying all necessary documents to ensure a smooth application process.
We guide you through the submission process, ensuring compliance with all deadlines and regulations.
Post-approval, we continue to provide guidance to help you maximize the benefits of the NHR 2.0 program.
Embark on your journey to Portuguese residency and tax optimization with PGA. Contact us today to learn more about how we can assist you in navigating the NHR 2.0 program.
