Non-Habitual Resident (NHR)

The Non-Habitual Resident regime was a Portuguese tax programme that offered flat-rate or exempt taxation on certain foreign-sourced income for a ten-year period for qualifying new tax residents. Introduced in 2009, the original NHR scheme was particularly attractive to retirees receiving foreign pension income and remote workers. Portugal replaced the original NHR programme in 2024 with a revised incentive scheme called IFICI, which targets specific high-value professions and activities. The NHR concept has influenced similar regimes in other countries seeking to attract mobile, high-income residents.