When it comes to easy nationality countries, Portugal is the best place for people around the world. The NHR Portugal 2025 guide highlight how new residents or expats can benefit from the new tax regime. The new Tax Incentive for Scientific Research and Innovation is all about 10 year tax free residency in Portugal. As per the official gazette report published on 23, December 2024, the IFICI+ includes 8 high qualified professions.
How the New NHR Portugal is Different?
The new NHR Portugal levies a flat 20% tax rate instead of 48% on eligible professionals with income source in Portugal. The IFICI program exempt tax on income from foreign employment or income from self-employment. So, you can avoid the usual tax rates that are very high.
The thing to note is tax implosion on foreign pensions whereas the previous NHR Portugal exempt foreign pension from tax. The IFICI tax regime is for non-resident professionals during previous 5 years and are from healthcare, renewable energy or from technology sector.
NHR Portugal Eligible Professionals
As per idealista, there are 8 eligible professionals fall under NHR Portugal tax regime. These professionals are:
- General director and executive manager of companies
- Directors of administrative and commercial services
- Production and specialized services directors
- Specialists in physical, mathematical, engineering and related technical sciences
- Industrial product or equipment designer
- Doctors
- Professor of university and higher education
- Information and communication technology (ICT) experts
Why Portugal Government Introduced the New NHR Program?
The new NHR Tax regime is a way to motivates global talent to Portugal by offering them lucrative tax incentives. The Non Habitual Residents will be subject to 20% IRS rate on their income. As per Emigration Observatory, around 0.85 million young and skilled people have left the country due to low wages. To overcome brain drain, government comes with the progressive tax scheme that aim to attract around 400,000 young talent into Portugal. Apart from reduced tax rates, Portuguese government is attracting youth talent by exempting them from taxes including municipal taxes, stamp duties.