Tax Residents
As per Article 16 of the Portuguese Personal Income Tax Code (CIRS), individuals are considered tax residents in Portugal if, in the relevant tax year, any of the following conditions are met:
- They remain in Portuguese territory for more than 183 days, consecutive or not, within any 12-month period beginning or ending in that year;
- They own a permanent home in Portugal that suggests an intention to maintain and occupy it as their habitual residence, even if present for fewer than 183 days;
- On 31 December, they are crew members of ships or aircraft operated by entities resident, domiciled, or headquartered in Portugal;
- They perform public functions abroad on behalf of the Portuguese State.
Any day including an overnight stay in Portugal is considered for the 183-day threshold.
Ex-Residents Regime
Under Article 12-A(1) of the CIRS, 50% of income derived from employment (Category A) and self-employment/business income (Category B) is exempt from personal income tax, up to 250.000,00 EUR per year, provided all the following criteria are cumulatively met:
Eligibility Conditions:
- Become a tax resident in Portugal in 2024, 2025 or 2026 (under Article 16 of the CIRS);
- Not have been tax resident in Portugal during any of the preceding 5 years:
- Returning in 2024 → not resident from 2019 to 2023
- Returning in 2025 → not resident from 2020 to 2024
- Returning in 2026 → not resident from 2021 to 2025
- Have previously been resident in Portugal:
- Before 31 Dec 2018 (for 2024 returnees)
- Before 31 Dec 2019 (for 2025 returnees)
- Before 31 Dec 2020 (for 2026 returnees)
- Possess a regularised tax situation;
- Must not be benefiting from the Non-Habitual Resident (NHR) regime.
Benefit Duration:
The exemption is granted for 5 years, starting from the year tax residency is re-established and all conditions are fulfilled.
Eligible Income Types:
- Category A – Employment income (e.g. wages/salaries)
- Category B – Business or professional income (e.g. self-employment)
IRS Jovem – Youth Tax Benefit
The IRS Jovem programme provides long-term tax relief for young taxpayers:
Key Features:
- Open to individuals up to 35 years old, including independent professionals;
- No longer requires completion of a degree;
- Applies to Category A (employment) and Category B (self-employment) income;
- Duration: 10 years, from the first year income is declared.
Exemption Rates:
- 100% in year 1
- 75% in years 2–4
- 50% in years 5–7
- 25% in years 8–10
The exemption limit is 55 × IAS, i.e. 28.009,30 EUR in 2025.
Employers may apply the exemption directly in salary withholding once notified.
Scientific Research and Innovation Tax Incentive (IFICI)
This tax regime applies a flat 20% rate to qualifying income from:
- Category A – Employment income, or
- Category B – Business/professional income,
provided the activity is strictly related to:
- Scientific research
- Technological innovation
- Higher education or academic teaching
It is reserved for qualified professionals in recognised sectors, often with research or academic affiliations. Eligibility must meet official criteria set out in law and guidance from the Portuguese Tax Authority.
Non-Habitual Residents (NHR)
The NHR regime was closed to new applicants as of 1 January 2024.
However, taxpayers already granted NHR status may continue to benefit for up to 10 consecutive years from the year of registration.
Main Features:
- 20% flat tax on domestic income from high value-added activities;
- Foreign-sourced income (e.g. pensions, dividends, interest, royalties) may qualify for:
- Full exemption under treaty rules, or
- 10% flat tax (for pensions), if certain criteria are met.
Non-Residents:
Non-residents are taxed solely on income earned within Portugal.
Please note: The tax regimes outlined above are mutually exclusive and may not be applied concurrently.
If you’d like further details on the tax rules in Portugal or specific nuances about each category, please feel free to reach out!