The Portuguese government, under the leadership of Prime Minister Luís Montenegro, is set to introduce a revamped version of the Non-Habitual Resident (NHR) tax regime, dubbed NHR 2.0. This new policy will grant non-residents—including immigrants and Portuguese citizens who have lived abroad for at least five years—a special reduced income tax (IRS) rate of 20%, targeting a wider range of high-demand qualified professions and industries.
The government’s initiative builds upon the framework laid out by the previous administration led by António Costa. Currently, around 20 professions are eligible for this tax benefit, such as scientists, researchers, executives, and even creative professionals. However, NHR 2.0 aims to significantly broaden the scope to include many more qualified professions and companies. This is part of the government’s strategy to stimulate economic growth through scientific research, technological innovation, and skilled labor across various sectors.
Expanding Opportunities for Global Talent
The newly expanded regime, referred to as IFICI+, will apply to a larger group of professionals, including those in technology, engineering, healthcare, and agriculture, among others. Eligible workers must have completed at least a secondary education and possess a minimum of five years of experience in their respective fields.
Under the new rules, professionals such as IT specialists, healthcare workers, academics, engineers, and even artists will enjoy a significant tax break, designed to make Portugal a more attractive destination for skilled talent. The government’s decision is also aimed at boosting investment and innovation in key areas of the economy, such as renewable energy, digital transformation, and the creative industries.
A Smooth Transition to NHR 2.0
While the original NHR program was officially phased out earlier in 2023, its successor, NHR 2.0, builds upon the previous scheme’s framework, offering a similar list of eligible professions. However, new legislation is not required for the implementation, as the rules fall under existing tax codes, ensuring a smoother transition to the new system.
The government is expected to publish updated regulations outlining the exact list of qualifying professions and companies in the coming weeks. Although there have been some initial delays in enabling non-residents to register for the new regime through the national tax portal, officials assure that the necessary technical updates will soon be in place.
Attracting Global Investors and Talent
The NHR 2.0 regime is part of a broader effort to position Portugal as a hub for international talent and investment. With its competitive tax rates, the country hopes to draw skilled professionals from across the globe, while encouraging Portuguese nationals living abroad to return.
In addition to individual professionals, the new regime will also offer tax benefits to companies promoting productive investments, with special incentives for those involved in eligible projects under the Investment Tax Code.
As the country continues to enhance its economic competitiveness, NHR 2.0 is expected to play a crucial role in attracting top-tier talent and fostering innovation in Portugal.
Next Steps
The new regulations are anticipated to be published in the government’s official bulletin soon, with the updated NHR 2.0 program. Interested professionals and businesses are encouraged to stay informed as the details of the expanded regime become available.
Consulting the non-resident professions considered to have high added value and eligible for the tax benefit, the following are included:
- General managers and executive managers of companies;
- Directors of administrative and commercial services;
- Directors of production and specialized services;
- Directors in hospitality, restaurants, commerce, and other services;
- Specialists in physical sciences, mathematics, engineering, and related fields;
- Doctors;
- Dentists and stomatologists;
- University and higher education professors;
- Information and communication technology (ICT) specialists;
- Authors, journalists, and linguists;
- Creative artists and performing artists;
- Technicians and intermediate-level science and engineering professionals;
- Information and communication technology technicians;
- Farmers and skilled workers in agriculture and animal production, market-oriented;
- Skilled workers in forestry, fishing, and hunting, market-oriented;
- Skilled workers in industry, construction, and artisans, including skilled workers in metallurgy, metalworking, food processing, woodworking, textiles, crafts, printing, precision instrument manufacturing, jewelers, artisans, electrical and electronics workers;
- Operators of installations and machines, and assembly workers, including operators of fixed installations and machinery.