Non-Habitual Resident (NHR) — Portugal

The Non-Habitual Resident (NHR) regime was Portugal's flagship tax incentive scheme for new tax residents, operational from 2009 to 2023. Under NHR, qualifying individuals received a ten-year window of preferential tax treatment on foreign-sourced income: certain categories were entirely exempt from Portuguese taxation, while others (such as professional income) faced a flat 10% rate. Primary beneficiaries included retirees with foreign pensions (fully exempt), remote workers, and entrepreneurs with non-Portuguese clients. To qualify, applicants must not have been Portuguese tax residents in the preceding five years. In 2024, Portugal replaced NHR with IFICI (Incentivised Tax Status for Scientific Research and Innovation), which narrowed eligibility to specific high-value professions — scientific researchers, academics, and qualified start-up employees — while eliminating the pension exemption that made NHR attractive to retirees. As of 2026, NHR is closed to new entrants; existing beneficiaries retain grandfathered rights through their ten-year windows. The regime's elimination reflects EU anti-tax-avoidance coordination and Portugal's shift toward targeted sector incentives rather than broad residency-based relief.