Portugal courts professionals and their families, with welcoming tax regime

Lisbon: 15 years after it first introduced its popular Non-Habitual Resident (NHR) tax program, Portugal has updated the scheme. Over 10,000 foreigners have already benefited from NHR tax status in Portugal, with the scheme delivering decade-long tax incentives for highly skilled workers. Now, the revised scheme – NHR 2.0, introduced in 2024 – is ensuring that professionals and their families can continue to benefit from tax reductions when they move to Portugal.

“In simple terms, if you have something to offer Portuguese society, you can be rewarded for it,” explains Christina Hippisley, General Manager of the Portuguese Chamber of Commerce in the UK. “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.”

Tax specialists Forvis Mazars point out that the NHR 2.0 regime – officially known as the Tax Incentive Scheme for Scientific Research and Innovation (IFICI) – while enacted on 1st January 2024, only saw final regulations released on 23rd December 2024. This means that individuals and businesses keen to take advantage of the scheme are now able to access full guidance on how they can benefit.

The purpose of NHR2.0 is to attract individuals with specific high-value skills and qualifications to settle in Portugal. Professionals in the technology and innovations sectors, along with researchers, scientists and other professionals in high-growth industries, can all benefit from a flat 20% income tax rate on employment income and professional income earned in Portugal.

They also enjoy a near-total tax exemption on income sourced from abroad, including income from rental properties, dividends, interest and capital gains. With benefits running for 10 years from the date of the application, this can represent substantial savings for those who choose to make Portugal their home and become tax-resident there.

Moving to Portugal with a family also has other, non-fiscal advantages. The sunshine and incredible natural landscape can underpin an active lifestyle, with plenty of opportunities for prioritising physical and mental wellbeing.

Portugal is home to bustling cities such as Lisbon and Porto, pretty towns and hundreds of miles of sweeping coastline, ensuring that every family can find a location that suits their needs and lifestyle. On the western coast, the sunny dunes of Comporta nestle between the ocean and Portugal’s largest expanse of rice paddies. To the south, the Algarve also attracts families relocating from around the world. Famous for its beaches, golf courses and outstanding seafood, the area offers an idyllic lifestyle in Portugal’s sunniest region, as well as the practical advantage of being home to several well-regarded international schools.

For professionals making the move, Portugal’s easy connectivity with the UK means that popping back for in-person meetings is both easy and affordable. The fact that the two countries are in the same time zone also has benefits from a practical working day perspective.

Families considering making the move to Portugal can access a wealth of advice at the Moving to Portugal Show and Seminars in London on 3rd April 2025. The free-to-attend event brings together financial and legal specialists, together with property developers, currency firms, business advisors, visa specialists and more, offering attendees a series of short seminars and speakers with abundant insights and expertise. Forvis Mazars will be among those speakers present, offering easy access to information and advice on NHR 2.0.

The largest event in the UK focused exclusively on moving to Portugal, the Moving to Portugal Show on 3rd April 2025 will take place at the Pestana Chelsea Bridge Hotel in central London from 10:30 am to 7:30 pm. Tickets can be booked free online.