Flight Risk Capital

Who is leaving Britain and what it costs to stay

NHR Portugal: what ended and how IFICI works

Portugal closed NHR to most new arrivals from 2024, with protection for existing and transitional cases. IFICI is a narrower regime for qualifying work, rather than a general newcomer tax break.

Information only. Not tax, legal or financial advice.

Last checked .

By Flight Risk Capital. Published: . Last updated: .

Has NHR ended for new applicants?

NHR means non-habitual resident, Portugal’s former special tax status for eligible new residents. The Portuguese Tax and Customs Authority says it was repealed from 1 January 2024, with protection for existing holders and defined transitional cases. Existing holders can use the remainder of their ten consecutive years.

An applicant who only became resident in 2025 cannot backdate residence to enter the 2024 transition. A qualifying person who became resident in 2024 may still obtain late registration for the remaining period, without recovering the missed years. These distinctions come from the authority’s NHR registration questions, checked 25 October 2026.

Who qualifies for IFICI Portugal?

IFICI is the tax incentive for scientific research and innovation. It followed NHR but has a narrower scope. Article 58-A, checked 25 October 2026, requires Portuguese tax residence after five years without it and income from a listed activity.

Routes include higher-education teaching, scientific research, specified qualified jobs, eligible research and development roles and work in certified startups. The job and organisation conditions matter. A professional title alone does not establish eligibility. Prior NHR or IFICI benefit and the separate returning-resident regime can prevent a claim.

What are the rate and duration?

Article 58-A provides a 20% rate on net employment and self-employment income from qualifying activities, with an option for ordinary aggregation. The period is ten consecutive years from the year of Portuguese residence registration. Continued residence and qualifying activity matter each year. A break does not restart the clock.

These are income tax rules. They do not establish the total cost of employment or remove separate contribution checks.

Is foreign income exempt?

The authority’s IFICI questions, checked 25 October 2026, describe a general foreign-income exemption with exceptions. Foreign pensions are outside that general exemption. Income from listed low-tax jurisdictions can face different treatment. Do not treat every overseas receipt as tax-free.

The same guidance gives the normal application deadline as 15 January after the year of becoming resident. Late registration can shorten the remaining benefit. The route determines which body checks the work conditions.

Which guides help with the wider move?

Use the Portugal country guide for practical checks, the Portugal golden visa guide for immigration and the UK residence guide for UK tax residence. The stay or go comparison uses ordinary salary assumptions and does not calculate IFICI or NHR relief.

What else do readers ask?

Can someone arriving now apply for NHR?

A new arrival cannot normally enter the old NHR regime. Protected and transitional cases depend on the earlier residence dates and legal conditions.

Is IFICI Portugal the same as NHR?

No. IFICI depends on specified work and employer or activity conditions. It is not a general regime for everyone moving to Portugal.

Does IFICI cover foreign pensions?

Foreign pension income is excluded from the general foreign-income exemption under IFICI. It should not be treated as automatically exempt.

Can a former NHR beneficiary switch to IFICI?

The Portuguese Tax and Customs Authority excludes people who benefit or have benefited from NHR. Giving up NHR does not itself create IFICI eligibility.

Where can I explore this further?

stay or go tool. Full sourced leavers tracker. Articles and tracker roundups.

Sources

Newsletter: sign-ups are closed.