Does the NHR program still exist?

The original NHR program is closed to new applicants as of 2024, but those who moved under it or meet specific 'transitional' criteria can still benefit. The new IFS program provides similar benefits for specific sectors.

Can I do this without a lawyer?

Technically yes, but it is not recommended. Portuguese tax law is complex, and misfiling can lead to being taxed on your worldwide income at local rates, which can exceed 40%.

Does this status apply to income earned in Portugal?

Usually, no. These tax incentives are primarily designed to attract foreign wealth and high-value foreign-sourced income.

Maximizing tax benefits when moving to Portugal

To legally minimize your tax burden in Portugal, you must register as a Non-Habitual Resident (NHR) or apply for the newer Incentivised Tax Status (IFS) if you qualify. These programs allow for a flat 20% tax rate on certain professional incomes and tax exemptions on most foreign-sourced income for a period of 10 years.

Obtain your NIF. Apply for a Número de Identificação Fiscal (NIF) at any Finanças office or via a tax representative. You cannot open a bank account, rent a home, or apply for residency without this.
Secure legal residency. Apply for the appropriate visa (D7, D8, or Golden Visa) before moving. You must prove you have a legal right to reside in Portugal to qualify for tax incentive programs.
Register as a tax resident. Once you have your residency card, visit the Finanças portal to update your status to 'tax resident' in Portugal. You must do this by March 31 of the year following your move.
Apply for the incentive status. Submit your application for NHR (if grandfathered) or the new IFS status through the Portal das Finanças. Ensure you have your residency proof and NIF ready.
Audit your income sources. Work with a local Portuguese tax accountant to categorize your income as either foreign-sourced or locally-sourced. Foreign dividends, interest, and rental income often qualify for exemptions under these programs.

Does the NHR program still exist?: The original NHR program is closed to new applicants as of 2024, but those who moved under it or meet specific 'transitional' criteria can still benefit. The new IFS program provides similar benefits for specific sectors.
Can I do this without a lawyer?: Technically yes, but it is not recommended. Portuguese tax law is complex, and misfiling can lead to being taxed on your worldwide income at local rates, which can exceed 40%.
Does this status apply to income earned in Portugal?: Usually, no. These tax incentives are primarily designed to attract foreign wealth and high-value foreign-sourced income.