Can I still apply for NHR in 2026?

No. NHR was closed to new applicants from 1 January 2024. The only people still on NHR are those who registered before that date and retain their status for the remainder of their 10-year period. New residents must use IFICI (if qualifying) or standard Portuguese IRS rates.

Does IFICI cover my foreign pension income?

No. Pensions fall outside the IFICI qualifying category and are taxed at Portugal's standard progressive IRS rates under Categoria H. For a EUR 40,000 foreign pension, expect roughly EUR 9,000-11,000/year at standard rates (illustrative estimate). The former NHR 10% flat rate on pensions is gone.

What professions qualify for IFICI?

Qualifying roles include scientific R&D, university-level research and teaching positions, high value-added technology jobs, and roles in designated innovation industries. The full list is set by ministerial Portaria and can be updated. Confirm your specific role with a Portuguese tax adviser before relocating.

How long does the IFICI benefit last?

Ten years, non-renewable - same as the old NHR. The clock starts in the first year you register and become tax resident. You cannot switch between IFICI and standard status mid-period if you lose qualifying employment.

Can I use IFICI and still benefit from the Golden Visa?

Yes. IFICI governs your Portuguese tax residency status; the Golden Visa governs your right to live in the Schengen Area. They are independent. Some IFICI-qualifying investors obtain a Golden Visa (fund route, EUR 500,000 minimum) and simultaneously register as tax resident under IFICI if their Portuguese employment qualifies.

Is there any tax break left for retirees moving to Portugal?

Not at the national income-tax level as of 2026. The NHR pension benefit is gone. Some municipalities offer IMI (property tax) exemptions on primary residences, but these are property tax reductions, not income tax benefits. Retirees should model their full progressive-rate liability before deciding. See lisbonos.com/portugal-tax-regime for a detailed walkthrough.

Portugal's IFICI Tax Regime 2026: What Replaced NHR and Who Can Still Get a Tax Break

What Happened to the NHR Regime?

The NHR programme, which had been running since 2009, was closed to new applicants by Portugal's 2024 State Budget (Lei n.o 24-D/2022 as amended). Anyone who already held NHR status before 1 January 2024 keeps their benefits for the remainder of their original 10-year period. New arrivals, however, must look to the IFICI regime or plan under standard progressive rates.

The motivation behind the closure was political pressure linked to housing affordability. For buyers and investors arriving now, the key question is: does IFICI cover my situation?

What Is IFICI?

IFICI stands for Incentivo Fiscal a Investigacao Cientifica e Inovacao (Fiscal Incentive for Scientific Research and Innovation). It is codified in Article 58-A of the Estatuto dos Beneficios Fiscais (EBF), inserted by the 2024 State Budget. The regime offers a flat 20% personal income tax rate on Portuguese-source employment or self-employment income from qualifying activities - matching the old NHR employment rate but restricted to a specific professional list.

The flat rate applies to Portuguese-source income from eligible activities only. Foreign-source dividends, interest, and capital gains may remain exempt from Portuguese tax under certain conditions, broadly similar to the old NHR foreign-income rules. The period runs for 10 years and is non-renewable.

Who Qualifies for IFICI?

To access IFICI, you must meet three conditions:

You must not have been tax-resident in Portugal during the five tax years immediately before you register.
Your employment or self-employment income must come from one of the eligible professional categories.
You must register via the Portal das Financas (AT) before or within the deadline tied to your first Portuguese tax declaration.

The eligible professions are defined in a Portaria (ministerial order) issued alongside the law. The qualifying list covers: qualified roles in scientific research and development, technology, innovation industries, recognised teaching and research positions at accredited Portuguese higher-education institutions, and qualified jobs in sectors designated as high value-added by regulation.

Practically, this means a software engineer employed by a tech company with Portuguese operations, a researcher at a Portuguese university, or an R&D professional at a qualifying employer is likely to qualify. A property investor, retiree, or remote freelancer generating only passive or unclassified income is likely outside the regime.

Who Is Left Out - The Critical Differences from NHR

The most significant gap compared to the old NHR is pensions. Under NHR, many foreign-source pensions were taxed at 10% (or 0% under certain double-taxation treaty structures). Under IFICI, pensions are taxed at Portugal's standard progressive rates, which rise from 14.5% on the first EUR 7,703 to 48% above approximately EUR 80,000 (Categoria H income, IRS tabela for 2026 - verify the current year's table at portaldasfinancas.gov.pt).

Other categories now outside the preferential rate include: standard rental income from abroad, dividend income that does not fall under the exemption conditions, and general freelance work that does not map to the qualifying professions list.

If you are a retiree who planned to live in Portugal partly because of the NHR pension benefit, IFICI does not replace that benefit. You should assess the actual progressive-rate cost for your specific pension type and country of origin's tax treaty position before committing to a move.

A Worked Example: Tech Worker vs Retiree

Consider two buyers, both purchasing a EUR 450,000 apartment in Porto and planning to become tax resident.

Profile A - Tech professional, EUR 90,000/year qualifying employment income:
Under IFICI flat 20% rate, Portuguese income tax on EUR 90,000 is approximately EUR 18,000/year. Under standard progressive rates (same EUR 90,000), the liability would be roughly EUR 29,000-33,000/year (estimate, based on 2026 IRS tabela bands - verify at AT). Illustrative only; individual circumstances and deductions will vary.

Profile B - Retiree, EUR 40,000/year foreign pension:
Under old NHR, this pension was often taxed at 10% (EUR 4,000/year). Under IFICI, pensions are out of scope. Standard progressive rates on EUR 40,000 produce approximately EUR 9,000-11,000/year (illustrative estimate - apply the current-year tabela to your actual figure). The NHR benefit for retirees is gone.

ProfileRegimeApproximate Annual TaxTech worker, EUR 90,000IFICI (flat 20%)approx EUR 18,000Tech worker, EUR 90,000Standard progressiveapprox EUR 29,000-33,000Retiree, EUR 40,000 pensionNo qualifying regimeapprox EUR 9,000-11,000Retiree, EUR 40,000 pensionOld NHR (closed)approx EUR 4,000

Figures are illustrative estimates. Apply the current-year IRS tabela from portaldasfinancas.gov.pt to your actual income profile.

How to Apply for IFICI

The registration process runs through the Portal das Financas (AT) at portaldasfinancas.gov.pt:

Obtain your NIF (fiscal identification number) if you do not already have one - full guide at lisbonos.com/blog/how-to-get-your-nif-in-portugal.
Establish tax residency in Portugal (spend more than 183 days in a tax year, or maintain a habitual residence here as of 31 December).
File the IFICI registration form via the AT portal, attaching evidence of qualifying employment (contract, employer letter, or proof of qualifying activity).
The registration must be filed no later than the deadline applicable in the year you become resident - in practice, file as early as possible to avoid missing the window.
Confirm acceptance in writing from AT before filing your first Portuguese IRS return under the regime.

Because the eligible professions list is defined by ministerial order and can be updated, consult a Portuguese tax adviser (autoridade tributaria-registered fiscal representative) to confirm your specific role qualifies before you relocate.

What Are the Alternatives for Non-Qualifying Buyers?

If you do not qualify for IFICI and are purchasing in Portugal primarily as an investment or lifestyle move:

Standard IRS progressive rates apply. For pure rental investors, rental income (Categoria F) is taxed at a flat 28% for most situations, or you can opt for taxation at marginal rates - run the numbers for your income level (AT guide: portaldasfinancas.gov.pt/irsdeclaracao).
Golden Visa route: The investment fund route (EUR 500,000 minimum into a CMVM-regulated fund) does not depend on tax residency. Many Golden Visa holders maintain residency elsewhere and simply meet Portugal's 7-day/year presence requirement without becoming tax resident. No IFICI eligibility needed.
D7 or Digital Nomad Visa: Passive income or remote worker residents become tax resident and are subject to standard IRS rates. Budget accordingly.

IFICI and Property Buying: The Connection

IFICI is a tax-residency regime, not a real estate regime. It does not affect IMT (Imposto Municipal sobre Transmissoes Onerosas de Imoveis) purchase tax, notary fees, or any part of the buying process. Property acquisition costs remain the same regardless of your tax status - typically 10-15% of the purchase price in total additional costs (IMT 0-8% tiered by value, Imposto de Selo at 0.8%, notary and registration fees approximately 1-2%). Use our IMT calculator at lisbonos.com/real-estate-portugal to model your purchase costs before you proceed.