Non-Habitual Resident Status (NHR 2.0) in Portugal in 2025

In 2025, the Non-Habitual Resident (NHR) status was renewed and adapted to new economic and fiscal demands. Its updated version, NHR 2.0, continues to offer attractive tax benefits, such as a reduced 20% income tax rate for qualified professionals in strategic areas for the national economy. This article explains the requirements, advantages, and steps needed to benefit from this regime during the 10 years of eligibility.

The end of the Non-Habitual Resident status as we knew it has, in 2025, given way to its 2.0 version, which remains aimed at individuals who become residents in Portugal and have not been residents here in the last five years.

It is a fiscal status that grants a benefit in terms of IRS – Personal Income Tax – consisting of a special 20% tax rate on employment income earned in certain activities, for 10 consecutive years starting from the year of registration as a resident in Portugal.

What are the requirements to obtain NHR 2.0 status?

To benefit from NHR 2.0, individuals must earn income derived from one of the following activities:

• Higher education teaching and scientific research, including scientific employment in entities, structures, and networks dedicated to the production, dissemination, and transmission of knowledge, integrated into the national science and technology system, as well as job positions and board members in entities recognized as technology and innovation centers;
• Qualified jobs and board members under contractual benefits for productive investment;
• Highly qualified professions developed in:
• Companies with relevant applications, during the start of duties or the five previous exercises, benefiting from or having benefited from the investment support tax regime; or,
• Industrial and service companies with specific activity scopes that export at least 50% of their turnover, during the start of duties or in any of the two previous exercises;
• Other qualified jobs and board members in entities performing economic activities recognized by AICEP, EPE, or IAPMEI, IP, as relevant to the national economy, particularly for attracting productive investment and reducing regional inequalities;
• Research and development personnel whose costs are eligible for tax incentive systems in business R&D;
• Jobs and board members in certified startup entities; or
• Jobs or other activities performed by tax residents in the Autonomous Regions of the Azores and Madeira.

What is the procedure to obtain NHR 2.0 status?

To obtain NHR 2.0, individuals must register as beneficiaries of this status with the following entities, depending on the relevant activities performed (Article 58.º- A/1):

• Foundation for Science and Technology (FCT);
• Portuguese Trade and Investment Agency (AICEP);
• Tax and Customs Authority (AT);
• Agency for Competitiveness and Innovation (IAPMEI);
• National Innovation Agency, Startup Portugal, and the Autonomous Regions of the Azores and Madeira.

FAQs

How do I maintain the benefit over the 10 years?

The right to be taxed under this regime over 10 years depends on the individual being considered fiscally resident in Portugal at any point in that year and continuing to earn, each year, income covered by one of the previously identified activities. It is considered that the individual continues to earn income from one of the relevant activities as long as the start of the new activity occurs within six months of the end of the previously performed activity.

If I fail to meet the requirements to maintain NHR 2.0 in any year, do I lose the right to benefit from the status in subsequent years?

No. An individual who has not enjoyed the right to be taxed under this regime in one or more years of the concession period can resume the benefit in any of the remaining years, starting from the year, including, when they are again considered a tax resident in Portugal and resume earning income from one of the relevant activities.

Is NHR 2.0 compatible with other specific tax benefits for foreign residents in Portugal?

No. NHR 2.0 is not compatible with NHR or the Return Program.

NHR 2.0 reaffirms itself as a strategic opportunity to attract talent and investment to Portugal, promoting key sectors and reducing regional inequalities. Despite the changes, the status remains a powerful tool for qualified residents seeking competitive taxation and support for their professional development. Make sure to meet the requirements and deadlines to make the most of this regime. Contact us for more information.