Portugal’s New NHR 2.0 Explained: What You Need to Know
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Discover Portugal’s new NHR 2.0 (IFICI) tax incentive replacing the old NHR regime. Learn who qualifies, how it works, and what it means for Golden Visa investors.
Intro
Portugal’s new NHR 2.0, officially called the IFICI (Incentivo Fiscal à Investigação Científica e Inovação) regime, replaces the famous Non-Habitual Resident (NHR) program that attracted thousands of expats and investors over the past decade.
While the classic NHR offered broad exemptions on foreign income, the 2025 version focuses on innovation, scientific research, and high-value professions. The result is a more selective but still competitive tax framework for new residents — including Golden Visa holders who choose to relocate to Portugal.
At Golden Visa Funds Portugal (GVFP), we help investors understand how the updated regime works and whether they can still benefit from Portugal’s favorable tax environment.
To learn more about investing in Portugal, read Golden Visa Funds Portugal Ultimate Guide 2025
Key Point | Details |
|---|---|
Regime Name | IFICI – Incentivo Fiscal à Investigação Científica e Inovação |
Also Known As | NHR 2.0 |
Effective From | 1 January 2024 |
Duration | Up to 10 years |
Tax Rate | 20 % flat on eligible Portuguese-source income |
Applies To | Qualified research, innovation, and export-focused roles |
Old NHR Status | Closed to new applicants after 31 Dec 2023 |
Transitional Window | Until 31 Mar 2025 for qualified pre-2024 residents |
The original NHR attracted more than 100,000 residents since 2009, offering 0–10 % tax on foreign income and pensions.
By 2023, the Portuguese government decided to phase out that version, arguing it had achieved its goals of attracting capital and talent but risked overheating property markets and widening inequality.
The new IFICI framework continues to reward relocation and innovation - but with a sharper focus on active contribution to Portugal’s economy rather than passive income optimization.
Eligibility centers on profession and purpose. Applicants must:
Become a Portuguese tax resident (spend ≥ 183 days a year or have a home intention to reside).
Work or earn income in eligible activities linked to innovation, research, or high-value skills.
Be employed by or own a company engaged in scientific or technological activities, exports, or renewables.
Examples of eligible roles:
Scientific research and R&D positions
University lecturers and researchers
Engineers, IT developers, and data scientists
Executives in export-oriented companies or start-ups
Entrepreneurs in innovation and green industries
20 % flat rate on eligible Portuguese-source income (salaries or self-employment).
Exemptions on certain foreign-source income, subject to double-taxation treaties (DTTs).
10-year duration, matching the old NHR period.
No wealth, inheritance, or gift taxes.
Foreign pensions and purely passive income are no longer automatically exempt — they may be taxed under Portugal’s standard progressive rates (14.5 % to 48 %).
If you obtained residency or secured a Golden Visa before 31 December 2023 and moved your tax residency to Portugal by 31 March 2025, you can still apply for the original NHR scheme.
All existing NHR beneficiaries keep their 10-year benefits until expiration — no changes apply retroactively.
Golden Visa holders can qualify for the IFICI regime only if they relocate to Portugal and work in an eligible sector.
For non-resident investors who visit occasionally (7 days per year minimum), Portugal still offers advantages:
No tax on global income while non-resident.
Fund income taxed only at source (10 – 28 %).
Access to over 75 double-taxation treaties reduces cross-border withholding.
If you later move to Portugal full-time and take a role in R&D, finance, or technology, you may be eligible for IFICI’s 20 % rate.
Feature | Old NHR | NHR 2.0 (IFICI) |
|---|---|---|
Effective Period | 2009 – 2023 | From 2024 onwards |
Focus | Attract expats and capital | Attract innovation and research |
Flat Tax Rate | 20 % on eligible PT income | 20 % on eligible PT income |
Foreign Pension | 10 % flat rate | Taxed progressively |
Foreign Dividends | Often exempt | Subject to treaty rules |
Eligibility | Open to any new resident | Limited to qualified sectors |
Q1: Can Golden Visa investors still apply for NHR?
Only if you qualified under the transitional rules before March 2025.
Q2: What if I arrive after 2024?
You may qualify for NHR 2.0 (IFICI) if your work falls within eligible sectors.
Q3: Is the 20 % flat rate automatic?
No. You must apply through the Portuguese Tax Authority after obtaining residency.
Q4: Does this replace the Golden Visa?
No. The Golden Visa is a residency program; NHR 2.0 is a tax regime you may opt into if you reside in Portugal.
Q5: Can I hold investments abroad under NHR 2.0?
Yes, but foreign income will be taxed based on treaty rules and not fully exempt as under old NHR.
Portugal’s new NHR 2.0 (IFICI) regime marks a shift from passive tax optimisation to active economic participation.
For Golden Visa holders or expats working in tech, science, or innovation, it still offers exceptional value and clarity for a decade of residency.
GVFP connects investors with tax advisors and fund partners who understand the interplay between Golden Visa investments and Portugal’s new tax environment.
Book a discovery call to assess your eligibility under NHR 2.0 and learn how to structure your investment for maximum efficiency.
Tariq El-Asad
Founder at goldenvisafundsportugal.com
Tariq El-Asad has worked with the Golden Visa program since 2014 and launched GoldennVisaFundsPortugal.com in 2021.
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