NHR or IFICI: which regime fits when you move to Portugal (2026)

Most people reach this decision anchored on the wrong regime. Here is the 2026 reality, and how to choose what is actually open to you.

Is NHR still available in 2026?

No. NHR is closed to new arrivals.

It stopped accepting new applicants on 1 January 2024, and the transitional window for people already mid-relocation has since ended. If you already hold NHR from an earlier year, you keep it until your ten-year period runs out. Everyone arriving now looks to IFICI instead. NHR was broad: for ten years it gave a 20% flat rate on certain Portuguese-source professional income and wide exemptions on most foreign income, including foreign pensions. That breadth is exactly why it was withdrawn.

What is IFICI (NHR 2.0)?

IFICI is the replacement: a 20% flat rate on qualifying Portuguese-source employment and self-employment income for ten years, plus exemptions on several categories of eligible foreign income.

The nickname NHR 2.0 oversells the similarity, because IFICI is tied to what you do and where you do it, not simply to the fact that you moved. The saving is real for the right person. The whole question is whether your activity qualifies.

Who qualifies for IFICI?

You qualify if two things hold: you were not a Portuguese tax resident in any of the previous five years, and your income comes from a qualifying activity carried out in Portugal.

A single year of prior residence inside that five-year window disqualifies you. The qualifying activities include scientific research at recognised institutions, innovation roles at companies with formal R&D status or certified by bodies such as AICEP or ANI, higher-education teaching, and certain highly qualified technical roles in strategic sectors. Several categories also expect a degree-level qualification. This list is where most borderline cases are decided, so confirm your specific role against the current rules.

Does IFICI cover pensions or passive income?

Retirees are then taxed under the ordinary progressive rules. Lifestyle relocations that would have chosen NHR five years ago now need a different plan entirely.

NHR vs IFICI: what is the difference?

NHR was broad, forgiving on profession, and generous on foreign pensions. IFICI is narrow, profession-led, and silent on pensions.

How do I choose the right regime when I move?

Because NHR is closed, choosing really means: does IFICI fit, and if not, what is my best structure under the standard rates.

Work through it in order. Are you clear of Portuguese residence for five years. Does your income come from a qualifying activity and entity. Is it Portuguese-source employment or self-employment, rather than pension or passive. If the answers line up, IFICI is very likely worth pursuing. If not, the value shifts to sequencing your residency start date and your income mix under the normal regime.

What is the IFICI application deadline?

You register through the Portal das Financas by 15 January of the year after you first became a Portuguese tax resident.

Miss it and you can lose the benefit for that cohort. If you are moving this year, the planning has to happen before you arrive, not at your first tax return.

Frequently asked questions

• Can I still apply for NHR in Portugal in 2026?
• No. NHR closed to new applicants on 1 January 2024 and the transitional window has ended. Only people who already hold the status keep it, until their ten-year period expires.
• Does IFICI tax foreign pensions?
• Foreign pensions are not covered by IFICI. Retirees who would have used NHR are now taxed under the standard progressive IRS rates.
• What is the IFICI tax rate?
• A 20% flat rate on qualifying Portuguese-source employment and self-employment income, for up to ten consecutive years.

Official sources: Portal das Financas (IFICI registration), the decree-law and portaria governing IFICI, and AICEP / ANI on company certification. Confirm the current text for your case.