Non-Habitual Resident (NHR) in Portugal: 2025 Guide for Expats
What Is the Non-Habitual Resident (NHR) Regime?
The Non-Habitual Resident (NHR) regime is a special tax program launched by the Portuguese government in 2009. It aims to attract expats, skilled professionals, retirees, and digital nomads by offering significant tax incentives for the first 10 years of residence in Portugal.
The NHR program allows qualifying individuals to benefit from reduced or even zero tax rates on foreign income, pensions, dividends, royalties, and certain Portuguese-sourced income.
✅ Benefits of the NHR Regime
-
•
Flat 20% tax rate on qualifying Portuguese income (for high-value-added professions)
-
•
Foreign income (pensions, dividends, royalties, rental income) may be exempt from Portuguese tax
-
•
No wealth tax
-
•
No inheritance tax for immediate family
-
•
10-year validity once granted
-
•
Open to both EU/EEA and non-EU citizens
This makes the NHR program particularly attractive for anyone moving to Portugal from countries like the UK, USA, or Brazil.
Who Can Apply for NHR?
To qualify for NHR status in Portugal, you must:
-
•
Not have been a tax resident in Portugal in the previous 5 years
-
•
Have the right to reside in Portugal (via a visa, EU citizenship, etc.)
-
•
Register as a tax resident (reside in Portugal for more than 183 days a year or have a primary home here)
-
•
Apply for NHR status via the Portuguese tax authority (Portal das Finanças) within March 31st of the year following residency
What Types of Income Are Covered?
Under the NHR program, the tax treatment varies depending on income source and tax treaties between Portugal and your country of origin.
| Income Type | Taxed in Portugal? | Notes |
|---|---|---|
| Foreign Employment | Usually exempt | If taxed in source country |
| Foreign Pensions | 10% flat tax (since 2020) | Previously 0% |
| Dividends, Interest | Often exempt | Depends on DTT (double tax treaties) |
| Rental Income | Often exempt | If taxed in source country |
| Portuguese Salary | 20% flat tax | For eligible professions |
Professions That Qualify for the 20% Flat Rate
This special rate applies to jobs considered "high value," including:
-
•
Engineers, architects, and technicians
-
•
Doctors and dentists
-
•
IT professionals
-
•
University professors
-
•
Investors and board members
-
•
Artists, musicians, and performers
Tip: Always consult a tax advisor to confirm if your job qualifies under the current NHR list.
Is NHR Still Worth It in 2025?
Yes — despite a few recent changes, the NHR regime remains one of Europe's most favorable tax systems for expats. Portugal offers a unique combination of tax efficiency, high quality of life, affordable cost of living, and easy residency options, especially through the D7 visa and Digital Nomad Visa.
Need Help with NHR?
Our team of experts can help you navigate the NHR application process and ensure you get the maximum tax benefits.