Portugal to Close NHR Tax Regime to New Applicants in 2024

Portuguese Prime Minister António Costa announced that the Non-Habitual Resident (NHR) tax regime will close to new registrations starting in 2024. While current beneficiaries will not be affected, and the 10-year benefit period remains intact for those who register by the end of 2023, no new applications will be accepted thereafter under the current scheme.

The NHR programme has long been a key incentive for attracting foreign talent, investors, and retirees to Portugal, offering significant personal income tax benefits for 10 years, including:

• A flat 20% tax rate on certain Portuguese-source employment and self-employment income

• Exemptions for most foreign-source income (e.g. pensions, dividends, interest, royalties), depending on tax treaty rules and origin

The government’s announcement lacked clarity on whether the NHR will be replaced by a new framework or phased out entirely, leaving potential applicants in a limited time window to act.

💡 If you’re considering relocating to Portugal, this may be your last chance to benefit from NHR as it currently exists.

📎 Learn more about the NHR programme here