Portugal has long been a desirable destination for expats, and with the introduction of the updated Non-Habitual Resident (NHR) tax programme—now known as NHR 2.0—the country is reinforcing its appeal to highly skilled professionals and their families. Officially called the Tax Incentive Scheme for Scientific Research and Innovation (IFICI), the revamped programme is designed to attract individuals with expertise in high-value industries such as technology, research, and innovation.
NHR 2.0: a gateway to tax benefits
Since its inception 15 years ago, the original NHR scheme has successfully attracted over 10,000 foreign professionals to Portugal. The new version, introduced in 2024, continues to provide substantial tax benefits, including a flat 20% income tax rate on employment and professional income earned in Portugal. Moreover, foreign-sourced income—such as dividends, interest, capital gains, and rental income—is largely exempt from taxation, making the country an attractive destination for international talent.
Christina Hippisley, General Manager of the Portuguese Chamber of Commerce in the UK, highlights the government’s intentions behind the scheme: “NHR 2.0 is a clear indication that the Portuguese government is keen to continue to encourage the inflow of talent that the country has seen over the past 15 or so years. It adds a financial incentive to the already powerful lifestyle offering that Portugal has for families considering a new life overseas.”
A lifestyle beyond tax incentives
While tax advantages are a significant draw, Portugal offers much more than financial benefits. With its favourable climate, stunning natural landscapes, and vibrant cities, the country is an ideal place for families looking to relocate. From the bustling metropolises of Lisbon and Porto to the serene beaches of the Algarve and the unspoiled beauty of Comporta, Portugal provides a diverse range of locations to suit different lifestyles.
For families with children, the Algarve stands out as a particularly attractive destination. Known for its golden beaches, world-class golf courses, and fresh seafood, the region also boasts several international schools, making it a practical choice for expatriate families seeking quality education options.
Moving to Portugal
With NHR 2.0 now in full effect, professionals considering a move to Portugal can benefit from a decade of tax incentives while enjoying the country’s exceptional quality of life. Whether drawn by financial advantages or the promise of a healthier, sun-filled lifestyle, expats can find a welcoming home in Portugal’s dynamic and growing economy. For all of your property needs in Portugal, we are here to help:
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