At a glance
- Is NHR still available in Portugal? No. The classic Non-Habitual Resident regime closed to new applicants, and the last transitional sign-ups ended on 31 March 2025.
- If you already hold NHR status, you keep it. Your benefits run for the remainder of your ten-year period, in most cases until 31 December 2033.
- The regime was replaced by IFICI, often called “NHR 2.0”, which taxes qualifying professional income at a flat 20% and exempts most foreign-source income.
- IFICI is narrower than the old NHR. It rewards specific high-value activities in science, technology, and other listed roles, rather than passive income or pensions.
- Madeira has its own list of qualifying activities under IFICI, and the Region still applies reduced personal income tax rates on the lower brackets.
Is NHR still available in Portugal? The short answer
No. Is NHR still available in Portugal for someone arriving today? The honest answer is that the classic regime is closed. Portugal abolished new access to the Non-Habitual Resident regime through the 2024 State Budget (Law 82/2023, of 29 December). A narrow transitional window then let certain people who were already mid-move register a little later. That window shut on 31 March 2025.
So there are really two answers, and it matters which one applies to you. First, for new arrivals, the door is closed. Second, for people who registered in time, NHR is very much alive and continues to deliver its benefits. Below, we explain both situations, and then turn to the regime that took its place.
State the conclusion first: if you are planning a move to Madeira now, you should stop asking whether you can still get the old NHR and start asking whether you qualify for its successor, IFICI. That is where the planning effort now belongs.
Why the Portugal NHR regime closed
The Non-Habitual Resident regime ran for over a decade. It offered new tax residents a flat 20% rate on certain Portuguese-source professional income, and broad exemptions on many categories of foreign income, all for ten years. It became, in short, one of Europe’s best-known relocation incentives.
However, its very success created political pressure. Critics argued that the regime fuelled housing demand and gave generous breaks to wealthy newcomers. As a result, the government announced its end in late 2023. The measure was then enacted in the 2024 State Budget, and from 2024 the regime stopped accepting ordinary new applications.
Therefore, the closure was a deliberate policy choice rather than a quiet administrative change. Understanding that helps, because it tells you the old regime will not simply reopen. Instead, Portugal redirected the incentive toward activities it wants to attract, which is exactly what IFICI does.
“I already have NHR” – do you keep it?
Yes. If you were validly granted NHR status, nothing in the reform takes it away. Your status continues for the rest of your ten-year term, and the rules you signed up to keep applying. For most holders, that means benefits run until 31 December 2033 at the latest, depending on when you registered.
There was also a grandfathering clause for people who had not yet finished moving. Article 236 of Law 82/2023 allowed a transitional path for those who had already taken concrete steps before set dates. In practice, that included people who, for example, held a valid residence visa or permit by 31 December 2023, had signed a property lease or promissory purchase by 10 October 2023, or had an employment contract in place by the end of 2023.
Those who met one of these conditions could still register, and the final deadline for doing so was 31 March 2025. Consequently, a small group of 2024 and early-2025 arrivals hold classic NHR today. If you think you may be in that group but never completed your registration, it is worth a careful review, because the assessment is fact-specific. MCS can review your position, subject to your documentation.
What replaced NHR: IFICI, the “NHR 2.0”
Portugal did not leave a vacuum. Alongside ending the old regime, it created the Tax Incentive for Scientific Research and Innovation, known by its Portuguese initials as IFICI and informally as “NHR 2.0”. The legal basis sits in Article 58-A of the Tax Benefits Statute (EBF), and the detailed rules came through Portaria 352/2024/1, of 23 December 2024.
In headline terms, IFICI looks familiar. It applies for ten years. It taxes qualifying employment and self-employment income at a flat 20%. Moreover, it exempts most foreign-source income, although that exempt income is still counted when setting the rate on any Portuguese income. So far, so similar to NHR.
The crucial difference is who qualifies. NHR was broad and welcomed pensioners, passive-income earners and remote workers almost regardless of sector. IFICI, by contrast, is targeted. You generally qualify only if you carry on a listed high-value activity, and you must keep performing it each year to keep the benefit. The official routes cover, broadly, scientific research and higher education, qualified jobs in certified innovation or investment projects, highly qualified professions in eligible companies, and certain roles tied to the national science and technology system.
One more practical point matters: timing. You must register for IFICI by 15 January of the year after you become tax resident. Miss that deadline and you generally lose access for that intake. Therefore, IFICI planning has to start before you move, not after you arrive.
NHR vs IFICI: a side-by-side comparison
Because the two regimes are often confused, the table below sets out the main differences at a glance.
| Feature | Classic NHR (closed) | IFICI / “NHR 2.0” (current) |
|---|---|---|
| Open to new arrivals? | No (closed; last sign-ups 31 Mar 2025) | Yes |
| Duration | 10 years | 10 years |
| Rate on qualifying income | 20% flat | 20% flat |
| Foreign-source income | Broad exemptions | Mostly exempt (with exceptions) |
| Pensions | Covered (later taxed at 10%) | Not covered |
| Who qualifies | Almost any new resident | Only listed high-value activities |
| Annual condition | None on activity | Must keep performing the activity |
| Registration deadline | By 31 March of following year | By 15 January of following year |
In short, IFICI keeps the headline 20% and the foreign-income logic, but it narrows the gate considerably. If your income is a pension, dividends, or rent, IFICI will probably not help you. If your income comes from a qualifying professional activity, it may help a great deal.
What this means if you are relocating to Madeira
Madeira deserves its own section, because the answer is not identical to the mainland. The Region operates within the national IFICI framework, but the law lets Madeira and the Azores define their own lists of qualifying activities. A dedicated Madeira route within IFICI exists in the legislation, although its regional implementation has been finalised separately from the mainland routes, so the current scope should always be confirmed before you rely on it.
There is also a second, quite separate advantage that has nothing to do with NHR or IFICI. Madeira applies reduced regional rates of personal income tax on the lower brackets compared with the mainland. So even an expat who does not qualify for any special regime can still pay less in Madeira than in Lisbon on the same income. For many retirees and remote workers, that ordinary regional reduction is the quietly decisive factor.
Finally, the cost-of-living and lifestyle profile of Funchal tends to support the numbers. Housing is generally cheaper than in Lisbon or the Algarve, and the Region runs its own health service, SESARAM, which you register with once resident. None of this is a tax regime, but all of it shapes the real after-tax outcome of a move.
If you don’t qualify for IFICI: your realistic options
Many people asking “is NHR still available in Portugal” are really asking a deeper question: can I still move to Madeira tax-efficiently? The answer is usually yes, even without a special regime. Here is how the pieces fit together.
First, choose the right immigration route. Retirees and passive-income households typically use the D7 visa, while location-independent earners often prefer the D8 digital-nomad visa. Your immigration choice does not grant a tax regime, but it does set the stage for residency.
Second, model your tax position under the ordinary rules, including Madeira’s regional reduction, before you commit. Sometimes the standard regime in Madeira is competitive enough that a special incentive is not the deciding factor. Other times, restructuring how and where income arises makes a material difference.
Third, if your profile is genuinely a qualifying IFICI activity, plan the registration timeline early. Because the 15 January deadline is unforgiving, the work has to begin before arrival. This is the point at which most clients engage local tax and accounting support.
Practical takeaways
- Is NHR still available in Portugal for new arrivals? No – the regime is closed and the last transitional sign-ups ended on 31 March 2025.
- If you already hold NHR, you keep it for the rest of your ten-year term, generally to 31 December 2033.
- IFICI (“NHR 2.0”) replaced it: a flat 20% on qualifying professional income, with most foreign income exempt.
- IFICI is narrow. Pensions and passive income are out; listed high-value activities are in.
- Register for IFICI by 15 January of the year after you become resident, so plan before you move.
- Madeira sets its own IFICI activity list and, separately, applies reduced regional income-tax rates on lower brackets.
- Even without any special regime, a well-planned move to Madeira can still be tax-efficient.
Where MCS can help
MCS advises expats and investors on Portuguese and Madeira tax residency from end to end. In practice, that means checking whether any residual NHR position still applies to you, assessing your eligibility for IFICI against the official activity lists, coordinating the registration within the deadline, and modelling your position under Madeira’s ordinary regional rates where no special regime fits. We also handle the surrounding steps – NIF, fiscal representation, and ongoing tax compliance and accounting – subject to each client’s circumstances and documentation.
Book a consultation to get an NHR/IFICI assessment tailored to your move to Madeira.
Frequently asked questions
Is NHR still available in Portugal in 2026?
No. The classic Non-Habitual Resident regime is closed to new applicants, and the final transitional registrations ended on 31 March 2025. Existing holders keep their status, and new arrivals should look instead at IFICI, the successor regime.
I already have NHR – will I lose it?
No. The reform does not strip status from existing beneficiaries. Your NHR benefits continue for the remainder of your ten-year period, in most cases until 31 December 2033, under the rules in force when you registered.
What is IFICI, and how is it different from NHR?
IFICI, informally “NHR 2.0”, is the Tax Incentive for Scientific Research and Innovation under Article 58-A of the EBF. Like NHR, it offers a flat 20% rate and broad foreign-income exemption for ten years. Unlike NHR, it is limited to specific high-value activities and excludes pensions and passive income.
Does IFICI cover pensions or rental income?
Generally no. IFICI rewards qualifying professional activity rather than passive income, so pensions, dividends and rents usually fall outside it. Retirees moving to Madeira typically rely instead on the D7 visa and on Madeira’s reduced regional income-tax rates.
Is the NHR replacement better in Madeira than on the mainland?
It can be. Madeira may define its own list of qualifying IFICI activities in the near future, and the Region separately applies lower personal income-tax rates on the lower brackets. So a move to Madeira can be more favourable than the mainland on the same income, even outside any special regime.
What is the deadline to register for IFICI?
You must register by 15 January of the year following the year you become a Portuguese tax resident. Because the deadline is strict and falls early, IFICI planning should start before you relocate, not after you arrive.
This article is for general information only and does not constitute legal, tax or immigration advice, nor does it create a client relationship. The NHR and IFICI regimes, their transitional rules, and Madeira’s regional activity lists and rates are subject to change and depend on each person’s specific facts. Any decision should be taken on the basis of advice tailored to your circumstances and to the rules in force at the time. Book a consultation for advice on your specific situation.
Miguel Pinto-Correia holds a Master Degree in International Economics and European Studies from ISEG – Lisbon School of Economics & Management and a Bachelor Degree in Economics from Nova School of Business and Economics. He is a permanent member of the Order of the Economists (Ordem dos Economistas)… Read more
