Tax Residency & Special Tax Regimes

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Portugal provides a competitive tax environment for foreign residents, anchored by the Non-Habitual Resident (NHR) tax regime, which has been a key attraction for Golden Visa investors. While the original NHR regime was repealed in 2023, the new “IFICI” regime (Incentivo Fiscal à Captação de Inovação Científica e Investimento) replaced it starting in 2024.

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Under IFICI, eligible foreign residents may benefit from:

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• A flat 20% tax rate on qualifying Portuguese-source employment and business income.
  
• Exemptions on foreign-sourced dividends, interest, royalties, and capital gains, subject to treaty provisions.
  
• Eligibility for 10 years, non-renewable.
  
• Exemption from inheritance and wealth tax, which Portugal does not levy.
  
  

To qualify, applicants must:

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• Not have been tax-resident in Portugal in the previous five years.
  
• Be employed in a high-value activity or export-oriented sector, or invest significantly in Portugal.
  
• Register as a tax resident (typically triggered by 183-day presence or primary residence tie).
  
• Apply through the Portuguese tax portal by March 31 of the following fiscal year.
  
  

Portugal has an extensive double tax treaty network with over 70 countries, including the U.S., Canada, UK, and major EU jurisdictions. These treaties can be leveraged to avoid double taxation and support strategic structuring of global assets.

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