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Why Portugal’s NHR Tax Incentive is Going Away

Portugal's popular NHR program will end soon, but you can still move, pay lower taxes, and live in Europe. Learn about the changes and explore solutions with Nomad Capitalist for tax planning and global diversification.


The 2024 State Budget in Portugal ends NHR eligibility for new tax residents. Existing beneficiaries and those meeting certain criteria retain NHR benefits. Apply by March 31, 2024, to become a tax resident by December 31.

Changes to Portugal’s NHR Program

Portugal ends NHR tax program due to political pressure and housing concerns. Prime Minister cites fiscal injustice and an unsustainable market. Real estate surge affects younger homeownership, echoing global generational issues.

Why Is The Change Happening?

During the global financial crisis, Portugal introduced the NHR program in 2009, attracting foreign residents with tax exemptions on foreign income. Aimed at those seeking tax residency, it provides benefits for ten years.

What is Portugal’s NHR Program?

Golden Visa no longer accepts real estate investments in Portugal. Different from NHR, it offers residency without tax obligations, aiding those pursuing citizenship.

Portugal’s Golden Visa Program

– Income from employment outside Portugal, taxed elsewhere, is tax-free in Portugal. – A flat rate of 10% is applied to retirement and pension income.

Tax Advantages of the NHR Scheme

– Income derived from rather than from tangible goods or products deemed high value-added is exempt from Portuguese tax. – Passive income from foreign assets, like property, dividends, royalties, and capital gains, may also be tax-exempt in Portugal.

For NHR, spend over 183 days in Portugal or have a permanent residence. Not a Portuguese tax resident in the last 5 years. Non-EU nationals need a residence permit, apply online by March 31 in the tax year.

How to Qualify for the NHR Scheme

Portugal plans to end the NHR scheme for new applications from January 1, 2024. Existing beneficiaries can continue for their 10-year period, and those meeting conditions by December 31, 2023, must apply by March 31, 2024.

When Will Portugal’s NHR Program End?

Move quickly for Portugal's NHR benefits; change tax residency by Dec 31, 2023. Explore affordable permits, considering changes post-2024. Discuss options with Nomad Capitalist for ongoing immigration possibilities.


Our experienced team can help you legally reduce your tax rate offshore, protect your assets, invest overseas, obtain a second citizenship, and improve your peace of mind. We’ve helped 1,500+ HNWI entrepreneurs and investors and we can help you, too.

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