Notes for international buyers
The Non-Habitual Resident (NHR) Program: A New Reality for 2026
If you are planning to move to Portugal, you have likely heard of the Non-Habitual Resident program—widely known as the NHR.
This tax regime was designed to attract investors and skilled professionals by offering significant tax advantages on foreign income for a 10-year period. It has been the primary driver for many choosing the Algarve as their new home.
However, as we move through 2026, the rules have evolved into what is now called the NHR 2.0: the IFICI (Tax Incentive for Scientific Research and Innovation), which replaced the NHR for new applicants from 2024 and applies only to qualifying activities.
The Reality Check: The era of "automatic" tax breaks is over. The new regime requires a much more technical and rigorous verification of your professional activity or investment project before you even establish residency in Portugal. A small oversight in the initial planning can result in a decade of unnecessary tax liabilities.
Don’t leave your financial future to chance. Ensure your transition is handled with local legal expertise.
Written on the date shown and updated in September 2026. The law and tax figures may have changed since. This article is general information, not advice on your particular case. For questions: info@pedrotabuada.com · +351 923 337 076.