Portugal NHR (and its IFICI successor): 20% flat — explained
Qualifying employment income is taxed at a flat 20%, versus progressive Portuguese rates up to 48%.
Estimate your take-home
A rough, illustrative comparison — not tax advice. Figures use 2026 brackets.
Estimate only — not tax advice. This applies the regime's headline rule to 2026 brackets and ignores deductions, allowances, your full circumstances, and the NHR / IFICI taper/limits. Eligibility is fact-specific and the rules change. Confirm any figure with a qualified tax professional before relying on it.
Run a full, personalised HEADING analysis →How it works
- Eligible Portuguese-source employment or self-employment income from qualifying high-value activities is taxed at a flat 20%.
- The classic NHR also exempted many categories of foreign income; the IFICI successor is narrower on foreign income.
- The benefit runs for 10 years.
Who qualifies
- Become a Portuguese tax resident not having been one in the prior 5 years.
- Work in a qualifying high-value activity (IFICI tightened the eligible-activity list).
- Register the regime with the Portuguese tax authority within the deadline.
What to watch
- Classic NHR is closed to new applicants — most newcomers now look at IFICI, which is not identical.
- The 20% rate applies to qualifying income only; other income may be taxed at standard rates.
- Estimate below applies the 20% headline rate against standard Portuguese social security; verify your eligibility and category.
Common questions
Can I still get NHR?
Not the classic NHR — it closed to new registrations after 2023. New arrivals are generally assessed under IFICI ("NHR 2.0"), which keeps a 20% rate for eligible high-value activities but treats foreign income more narrowly.
Does the 20% apply to everything I earn?
No — only to qualifying income. Non-qualifying income can be taxed under standard progressive rates.
Not tax advice. HEADING provides informational estimates from 2026 data to illustrate rough take-home differences — not a determination of your eligibility or liability. Special regimes are fact-specific and the rules change. Confirm any position with a qualified tax professional licensed in Portugal before acting. Source: taxsummaries.pwc.com.
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