TAXES AND RELOCATION
Portugal taxes: residence, NHR and IFICI
Portugal tax residence, foreign income, protected NHR cases and IFICI eligibility, with precise limitations and official AT sources.
Personal income tax overview, not an individual calculation. Excludes corporate tax, VAT, social contributions, wealth and inheritance taxes.
How is Portuguese tax residence determined?
- In a relevant rolling 12-month period
- >183 days
- Residence period
- Part-year possible
The general tests are more than 183 days, consecutive or interrupted, in any 12-month period beginning or ending in the tax year, or a home indicating an intention to maintain and occupy it habitually. A presence day includes an overnight stay. Under these tests, residence normally starts on the first day of the stay.
A qualifying home can establish residence with fewer days; statutory exceptions apply. This is not only a calendar-year day count.
Sources and verification dates
- AT — Tax residency rulesVerified:
- AT — IRS Article 16 and NHR transitionVerified:
Is foreign income taxable in Portugal?
- Ordinary resident rules
- Worldwide income
An ordinary resident is taxed on worldwide income; a nonresident on Portuguese-source income. Under IFICI, other domestic income remains under ordinary IRS rules; foreign income is generally exempt, except Category H pensions. Payments by entities in listed preferential-tax jurisdictions have special 35% taxation rules.
“All foreign income is tax-free” is incorrect. The payer’s nationality or bank-account location does not determine income source; individual classification and treaty outcomes are not calculated here.
Sources and verification dates
- AT — Tax residency rulesVerified:
- AT — Circular 20276/2025, Q&A question 2Verified:
- AT — IFICI official FAQsVerified:
Does a new move in 2026 open the NHR regime?
- Residence date within transition conditions
- 31 Dec 2024
NHR was repealed with protected existing and transitional cases, including qualifying residence by 31 December 2024 with specified prior commitments. A new move in 2026 does not generally open NHR. Late registration of an already eligible transitional case may preserve only remaining years.
The date alone does not establish NHR eligibility. Family transition cases also exist; this is not an exhaustive transition checklist.
Sources and verification dates
Who can use IFICI?
- Without Portuguese tax residence before entry
- 5 years
IFICI is available to Portuguese and foreign citizens becoming resident after five years without Portuguese tax residence, with qualifying activity and income. Current or former NHR beneficiaries, those electing the Article 12-A returnee regime and prior IFICI users are excluded.
A remote job, occupation title or visa alone is insufficient. The activity and employer or entity conditions matter.
Sources and verification dates
- AT — IFICI official FAQsVerified:
Which income gets the IFICI 20% rate and ten-year window?
- Eligible net employment / business income
- 20%
- From the residence-registration year
- 10 consecutive years
Qualifying branches include higher-education teaching and research, specified investment-linked skilled jobs, qualifying highly skilled roles, R&D and certified-startup roles. Eligible net employment or business income can receive a 20% rate within the ten-year window.
Each branch has its own conditions. Qualifying residence and income must continue; interruptions do not reset the clock. This is not a general rate for all technology workers or all income.