TAX Incentives

The NHR Tax Regime has undergone some changes and since the beginning of this year, a new special tax incentive regime has been implemented aimed at attracting talent and promoting research and innovation in Portugal.

This regime applies to taxpayers who fulfil three essential conditions:

• Become tax residents in Portugal
• Not having been resident for the previous five years, and
• They earn income in certain professional categories.

The eligible professional careers are:

• Higher education lecturers and researchers integrated into the national science and technology system, as well as professionals in recognised technology and innovation centres;
• Qualified jobs and members of governing bodies in organisations benefiting from tax incentives for productive investment;
• Highly qualified professions in the areas of finance and economics;
• Professionals in companies with a history of tax support for investment and in industrial and service companies that export significantly;
• Qualified jobs and members of governing bodies in entities recognised by AICEP, EPE, or IAPMEI, IP, as relevant to the national economy;
• Research and development jobs, especially for doctoral graduates whose costs are eligible for the Sistema de Incentivos Fiscais em Investigação e Desenvolvimento Empresarial (SIFIDE);
• Jobs and members of governing bodies in entities certified as start-ups, under the terms of Law no. 21/2023 of 25 May.

Advantages:

• Special rate of 20 per cent on net income from categories A and B
• Exemption on income earned abroad, with the exception of pensions
• This special regime will be available for a period of 10 consecutive years, as long as taxpayers remain tax residents in Portugal and continue to earn income from eligible activities.

This regime does not apply to those who have already benefited from the Non-Habitual Residents (RNH) regime or opted for taxation under the Ex-Residents regime (Programa Regressar).

Please consult your lawyers for more information.