Non-Habitual Resident Status (NHR 2.0) in Portugal in 2025

In 2025, the Non-Habitual Resident (NHR) Status was renewed and adapted to the new economic and tax requirements. Its NHR 2.0 version continues to offer attractive tax benefits, such as a reduced rate of 20% in terms of personal income tax, for qualified professionals in strategic areas for the national economy. This article explains the requirements, advantages and steps necessary to benefit from this scheme during the 10 years of eligibility.

The end of the Non-Habitual Resident status as we knew it until then came, in 2025, to give way to its version 2.0, which continues to be aimed at people who become residents in Portugal and who have not been residents here in the last five years.

It is a tax statute that confers a benefit in terms of IRS – Personal Income Tax – and consists of a special rate of taxation of 20% on income from work earned within the scope of certain activities, for a period of 10 consecutive years from the year of your registration as a resident in Portugal.

What are the requirements to obtain NHR 2.0 status?

To benefit from NHR 2.0, people must earn income derived from any of the following activities:

• Teaching in higher education and scientific research, including scientific employment in entities, structures and networks dedicated to the production, dissemination and transmission of knowledge, integrated in the national science and technology system, as well as jobs and members of governing bodies in entities recognized as technology and innovation centers;
• Qualified jobs and members of corporate bodies within the scope of contractual benefits for productive investment;
• Highly skilled professions developed in:
• Companies with relevant investments, in the exercise of the beginning of functions or in the five previous years, that benefit or have benefited from the investment support tax regime; or
• Industrial and service companies, with a specific scope of activity and exporting at least 50% of their turnover, in the exercise of the beginning of their functions or in any of the two previous years;
• Other qualified jobs and members of corporate bodies, in entities that carry out economic activities recognized by AICEP, EPE, or IAPMEI, IP, as relevant to the national economy, namely attracting productive investment and reducing regional asymmetries;
• Research and development of personnel whose costs are eligible for the purposes of the system of tax incentives in business research and development;
• Jobs and members of governing bodies in entities certified as startups; or
• Jobs or other activities carried out by tax residents in the Autonomous Regions of the Azores and Madeira.

What is the procedure to obtain NHR 2.0 status?

To obtain the NHR 2.0, the individual must register as a beneficiary of this Statute with the following entities, depending on the relevant activities carried out (article 58-A/1):

• Foundation for Science and Technology, I. P. (FCT);
• Agency for Investment and Foreign Trade of Portugal (AICEP);
• Tax and Customs Authority (AT);
• Agency for Competitiveness and Innovation, I.P. (IAPMEI);
• National Innovation Agency, S.A. of Startup Portugal and the Autonomous Regions of the Azores and Madeira.

Faq

How do I maintain the benefit over the 10 years?

The right to be taxed under this regime, over 10 years, depends on the individual being considered tax-resident in Portuguese territory, at any time of that year and on continuing to earn, in each year, income framed in the exercise of one of the activities previously identified. It is considered that the individual continues to earn income within one of the relevant activities, whenever the beginning of the exercise of the new activity occurs within a maximum period of six months after the end of the activity previously exercised.

If I do not meet the requirements for maintaining NHR 2.0 in any of the years, do I lose the right to benefit from the Statute in the following years?

No. An individual who has not enjoyed the right to be taxed under this regime, in one or more years of the concession period, may resume the enjoyment of it in any of the remaining years, starting from the year, inclusive, in which he or she is considered resident in Portugal again for tax purposes and earns income again within the scope of the one of the relevant activities.

Is NHR 2.0 cumulative with other specific tax benefits for foreigners residing in Portugal?

No. NHR 2.0 cannot be combined with NHR or the return programme.

NHR 2.0 reaffirms itself as a strategic opportunity to attract talent and investment to Portugal, promoting key sectors and reducing regional inequalities. Despite the changes, the statute remains a powerful tool for qualified residents who want to benefit from competitive taxation and support for their professional development. Make sure you meet the requirements and deadlines to get the most out of this scheme. Contact us for more information.

https://www.lamarescapela.pt

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It is essential to consult with legal and tax professionals to understand how these changes may impact your circumstances and determine the best course of action. You will be able to make well-informed decisions regarding your tax residency and financial planning in Portugal by staying informed and seeking professional advice.

Disclaimer: This article provides general information and should not replace personalized advice from tax professionals. The content is based on the information available at the time of writing and is subject to change. Consult with professionals for advice tailored to your specific circumstances.